16/11/2024 (inews) - Spanish olive oil maker Deoleo says the most challenging time in the industry’s history appears to be coming to a close.

The world’s largest producer of olive oil has said that prices for the so-called “liquid gold” are set to halve from all-time highs, making the cooking staple more affordable.

Prices for olive oil have as much as doubled on supermarket shelves following a weather-fuelled crisis for the industry.

Southern Europe has been affected by extreme weather and droughts in recent years, damaging olive harvests and leading to a historical spike in prices.

But Spanish olive oil maker Deoleo has predicted that prices will halve from an all-time high in coming months, with the harvest for this season on track to be significantly better than last year.

Figures from the Office for National Statistics (ONS) show that olive oil prices in the UK are up 150 per cent since the end of 2021.

Last December, a typical bottle of extra virgin olive oil (500ml to one litre in size) cost £7.16, up from £4.70 in 2022, according to the ONS.

This has come during a period of intense pressure on households, with rampant inflation pushing food prices rises to 45-year-highs, as well as increased energy bills.

Miguel Angel Guzman, chief sales officer at Deoleo, told CNBC: “We are still going through a phase of tension in olive oil prices, especially in the higher quality oils, such as extra virgin.

“However, the outlook is positive for the coming months, as the market is expected to begin to stabilise and normality is expected to be gradually restored as the new harvest progresses and supply increases.”

The International Olive Oil Council estimates that most countries producing olive oil, such as Spain, Greece, Portugal and Tunisia, will see a better harvest this year.

The shortage of olive oil, a superfood staple of the Mediterranean diet, pushed the industry into crisis mode and even prompted a crime in Spanish supermarkets.

Spain accounts for more than 40 per cent of the world’s olive oil production. Overall, the Mediterranean accounts for 80 per cent of global supply.

Reports from farmers in southern Europe, who were most affected by scorching droughts, suggest Spain’s output will rise to 1.4m tonnes from 850,000 last year.

Mr Guzman said wholesale prices were expected to decline between November and January and proceed to fall well into 2025, provided weather conditions remain favourable.

https://inews.co.uk/news/olive-oil-prices-halve-record-highs-relief-families-3384469