Olive oil prices on the rise due to reduced Spanish production
Olive oil prices continue to rise according to the latest figures released by the International Olive council.
The sharp rise is a response by global markets to the news from major Spanish olive oil producing regions that the 2012/13 harvest will be 50-70% lower compared to that of the previous harvest. This is mainly due to the droughts and the consecutive heat waves that hit Spain after May 2012.
Spain being the largest producer of olive oil in the world, is a key market in influencing prices in other major olive oil producing countries like Italy and Greece. Both countries were affected by heat waves this summer but not as Spain did.
In Halkidiki, Greece, where ELEONES products are produced, the olive trees seem to be managing pretty well with this year’s weather and if the weather does not bring any unpleasant surprises it seems that the harvest will be at least 50% larger than that of last year.
Producer prices however are likely to follow the global upward trend as producers will try to cover the substantial damages sustained from last year’s reduced production.