According to Olive Oil Times,Spain is the largest producer of olive oil in the world ‘by a wide margin’, and thus, the problems producers are facing in Spain are going to have far-reaching consequences when it comes to olive oil. Olive oil growers in Spain have been very severely affected by the rising cost of production and the persistent drought the region is experiencing this year.
Discover our latest podcast
Olive oil prices could rise by up to 25%
According to another report by Olive Oil Times, rising prices of fuel and energy because of Russia’s invasion of Ukraine, as well as the rising cost of fertilisers and ‘signs of slumping consumption’ of olive oil, have also led to the rising cost of production for olive oil producers and growers.
As per BBC, olive oil prices could increase by up to 25% due to the rising production costs. Acesur, an olive oil supplier to the biggest supermarkets in the United Kingdom, told the BBC that the price hike in production is likely to filter through prices in the shops over the next three or four months via contract renewals. This increase in turn will have to be shouldered by the consumer.
BBC also reported that the extreme weather conditions in parts of Europe this year could also have a serious impact on future oil production if olive trees are unable to grow new branches.
Heatwave and drought in Europe in 2022
The heatwave in Europe this year has adversely impacted many aspects of the region. According to New York Times, apart from the record-breaking high temperatures that Britain saw in July, Europe has been beset by calamities such as forest fires that erupted in parts of Portugal, Greece, Spain and France, as well as a number of blazes in the city of London during the peak of the heatwave. It had also led to travel disruptions across Britain.
Along with the heat, Western Europe is also now facing a drought. As stated by The Guardian, this drought might be the worst one in 500 years. This too could have a far-reaching impact on fuel and oil prices in the future, which in turn would impact consumers.