The increase in the price of olive oil reduced consumption

There have been significant increases in olive oil prices due to damage caused to the product by extreme heat and drought in European countries where the world’s largest olive oil production occurs. Due to the effect of the price increase, olive oil consumption in the region decreased.

Climate change, temperatures above seasonal norms and low rainfall negatively affect olives, as well as other agricultural products.

Especially in European countries neighboring the Mediterranean, dry and hot summers cause olive and olive oil production to decrease.

PRICES HAVE DOUBLED

Rising olive oil prices in European countries, where two-thirds of the world’s olive oil production is produced and is a large consumer, has led to a decline in consumption.

Olive oil prices roughly doubled last year due to damage caused to the product by extreme heat and drought. Olive oil consumption was negatively affected by price pressures and the effects of the cost of living crisis.

“For many families in the region, the price of olive oil has become a symbol of the fight against high inflation,” Bloomberg Opinion’s Javier Blas wrote in a recent article.

EXPECTED DECREASE OF 6 PERCENT IN CONSUMPTION

In the European Union’s statement this week it was noted that consumption in the region will decrease by 6 percent in the new season.

It was stated that following the current drought, prices will also be high this season and there will be a decrease of approximately 10 percent in EU exports compared to the previous year.

Although a 15 percent increase in productivity is expected this year after the 50 percent loss in production in Spain, which ranks first among European countries in olive oil production, production will still be down a third below the four-year average.

On the other hand, producers in Spain are struggling not only with the drought but also with the wave of crime that has surrounded the olive oil industry. Thieves target stored olive oil, freshly picked or still-on-the-tree fruit, and even counterfeit products.

PRICES ALSO RISE IN Türkiye

While drought-affected global olive oil prices hit consecutive new record highs, this price increase also extended to Turkey.

Olive oil prices also skyrocketed in the domestic market due to reasons such as problems experienced in global production increasing demand from Turkey and the reflection of domestic exchange rate increases on costs.

If we look at the evolution of prices in the different markets, we see that the prices of 5-liter cans of olive oil have exceeded 1,500 lira.