World’s Largest Olive Oil Producer: Sector Faces Its Toughest Times
Deoleo, the world's largest olive oil producer based in Spain, has stated that the sector is undergoing a "profound transformation" amidst its toughest period in history. A powerful storm created by conditions such as climate change, rising prices, high interest rates, and strong inflation has recently impacted the olive oil value chain.
Two consecutive years of scorching heat in Spain have limited olive harvesting, leading to a price increase of staggering proportions, surprising both consumers and industry officials.
Spain accounts for over 40% of the world's olive oil production, making it a global reference point for prices.
Miguel Angel Guzman, sales manager at Deoleo, stated in an email to CNBC, "We are facing one of the toughest moments in the sector's history. Strong inflation, coupled with high interest rates and a drought cycle, has significantly increased prices due to negative olive oil harvest forecasts in terms of quantity and quality."
Extra virgin olive oil prices in the Andalusia region of Spain reached a record level of 9.2 euros per kilogram (9.84 dollars) in January. However, prices slightly retreated later due to beneficial rainfall in March and April.
Guzman emphasized, "There are still months ahead until we learn about the possible volumes of the 2024/2025 harvest, and until then, prices will continue to fluctuate. In the meantime, the sector needs a profound transformation."
Two consecutive years of scorching heat in Spain have limited olive harvesting, leading to a price increase of staggering proportions, surprising both consumers and industry officials.
Spain accounts for over 40% of the world's olive oil production, making it a global reference point for prices.
Miguel Angel Guzman, sales manager at Deoleo, stated in an email to CNBC, "We are facing one of the toughest moments in the sector's history. Strong inflation, coupled with high interest rates and a drought cycle, has significantly increased prices due to negative olive oil harvest forecasts in terms of quantity and quality."
Extra virgin olive oil prices in the Andalusia region of Spain reached a record level of 9.2 euros per kilogram (9.84 dollars) in January. However, prices slightly retreated later due to beneficial rainfall in March and April.
Guzman emphasized, "There are still months ahead until we learn about the possible volumes of the 2024/2025 harvest, and until then, prices will continue to fluctuate. In the meantime, the sector needs a profound transformation."
