The price of olive oil has skyrocketed in recent months like never before. Currently, the price of extra virgin olive oil (EVOO) already exceeds 6 euros in the Spanish market.
Traditionally, Spanish oil was the cheapest in Europe and the Mediterranean (the main world producing region), but with prices rising, it is now at the opposite extreme: it is the most expensive in the world.
Liquid gold at very high prices
Only Italian extra virgin olive oil will exceed the price of Spanish. EVOO costs around 6.27 euros in the Mediterranean country, compared to 6.20 euros in Spain. Of the rest of the derivatives, the Spanish product is more expensive than the Italian, Greek, French or Tunisian, according to data compiled by elDiario.es. Lampante oil remained at 5.60 euros.
A price increase that producers fear will be greater than or equal to 1990s levels. If this happens, consumers will stop buying liquid gold and replace it with alternatives such as sunflower.
Why has the price increased?
Drought and lack of reserves are among the reasons that explain the rise in prices. Spain certainly has a serious drought problem. Water shortages that directly hurt oil producers who warn that neither olives nor oil can last more than a season.
To this drought we must add that both oil mills and bottling plants are running out of oil. Current reserves barely exceed 600,000 tonnes. Below 100,000 tonnes the real shortage problems will start.
