Image: Dmytro Zinkevych / Shutterstock.com.
After two tough years of drought, poor harvests, and record-high prices, Spain’s olive oil industry is showing signs of recovery.
As a cornerstone of the Mediterranean diet and rural economy, olive oil enters the 2024/25 season with renewed optimism. For now, the extreme prices seen recently are unlikely to return soon.
Prices at source are dropping and approaching 2022 levels. With a strong harvest expected this season and favourable forecasts for the next, thanks to recent rainfall, the mood is more positive.
Most Read on Euro Weekly News
From July 2022 to April 2024, consumer prices for extra virgin olive oil rose by over 112 per cent, at times exceeding €15 per litre. Farmers saw prices peak at nearly €9 per litre in January 2024, up 158 per cent, according to Infaoliva data.
That trend has reversed. Adjusted for inflation, retail prices fell 38 per cent from March 2023 to March 2024, while production prices dropped over 50 per cent.
Spain, the world’s top producer and exporter, normally yields over a million tonnes per year but fell short recently due to weather. The war in Ukraine also worsened costs.
With a strong 2024/25 production forecast of 1.407 million tonnes, the outlook is hopeful.