Olive Oil Prices Skyrocket in Spain, Exceeding 10 Euros Per Liter

Olive oil prices in Spain have surged, reaching a staggering 10 euros per liter for extra virgin olive oil, a level unthinkable just a year ago. Over the last year, the price has risen by 38.8%, with the highest quality, extra virgin, seeing an increase of over 227%. The primary reasons for this sharp incline are the drastic production drop of about 50% due to drought and bleak forecasts for the upcoming season because of insufficient rain. Spain’s Minister of Agriculture, Luis Planas, commented that prices would plummet if there were intense rainfall over the next month. While Planas acknowledges the strain these prices put on average Spanish households, he suggests there’s no risk of market shortage. Consumer organizations and agricultural bodies highlight the rampant speculation around olive oil pricing, emphasizing that current retail prices far exceed what retailers paid producers. The concern extends to consumers potentially opting for cheaper vegetable oils over premium olive oils, impacting consumption patterns and the overall olive oil industry.