World’s largest olive oil producer predicts prices to halve

Spain’s Deoleo, the world’s largest olive oil producer, predicts a price drop in the olive oil market and believes the market’s most difficult moment is behind it. Oil prices could almost halve in the coming months, CNBC reported, quoting Deoleo sales director Miguel Angel Guzman. He believes the average price of a liter of olive oil will drop from the current €9-10 to €5 in the coming months.

Olive oil prices have roughly tripled in the past five years as olive plantations have suffered from droughts and crop failures, especially in Spain, which accounts for about 40% of the world’s olive oil production. This summer, Deoleo claimed “one of the most difficult moments in the sector’s history”.

However, the situation is now changing, with market participants predicting a good olive harvest in 2024-2025 in Spain, Greece and Tunisia. “We are still in a difficult phase in terms of oil prices, especially for high quality varieties such as Extra Virgin,- said Mr. Guzman. However, the outlook for the coming months is positive, as the market is expected to begin to stabilize and normalcy will gradually return as new harvests are harvested and supplies increase.”

According to the publication, Spain is expected to produce around 1.3 million tons of oil, up from 670,000 to 680,000 tons last season

According to OleoScope, in the current season the world olive oil production growth of more than 20% due to favorable weather in the Mediterranean countries, which are the main regions of olive trees. Europe is expected to grow by more than 20% to 2.9 million tons.

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Tags: EU, prices