February 26, 2024

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Prices continue to rise

Prices continue to rise

With the price to olive oil At auctions for It exceeds 9 euros todayFrom 5 euros, which was the average price last year, its price for the consumer increased by 58.5% year on year, according to the source. Yesterday's data from ELSTATIt seems that this is only the tip of the iceberg.

Within a year, the price of a liter on the shelf had doubled as it was shipped week after week. The price of its most economical product on the market today is 17 euros, and according to expectations, it will not take long to reach 20 euros per liter and perhaps higher, according to representatives of consumer organizations.

Moreover, if last year the consumer paid for oil at 11-12 euros while it was sold at 5 euros by the producer, today when the producer sells it at 9 euros, the consumer will be required to pay at least 20 euros. At his discretion Speaking at Powergame is Myron Chelitzakis, Vice President of the Agricultural Cooperative of Heraklion Crete.

The above seems contradictory for an olive-producing country, such as Greece, that tops the world rankings, after Spain and Italy. However, poor harvests due to the climate crisis and increasing production costs have affected the global market, as consumers look for deals to meet their needs. Many do not resort to alternative products, such as sunflower oil, which, despite the increases it has seen, has become much cheaper, leading to a decrease in demand for extra virgin olive oil. The issue of changing dietary trends is a thought-provoking one but an emerging trend in current circumstances.

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Today the problem is exacerbated by the decline in production on a global scale. Spain, the world's largest olive oil producer, for the second year in a row is facing production well below historical averages. With olive groves stressed due to water shortages and high temperatures, as well as limited reserves, the country expects continued upward pressure on olive oil prices.

According to market operators, Spain now controls more than 50% of the global market, and after the decline in production, the crisis intensifies. It is noteworthy that Spain produced approximately 2 million tons of olive oil in 2019, while its capacity this year reaches only 600 thousand tons. This development, largely due to the climate crisis, has an impact on the global and Greek market, which in good years produces about 350 thousand tons, a difference of 20-50 thousand tons from Italy. It is noteworthy that Greece and Spain produced about 700 thousand tons in the previous season in total, and Italy another 600 thousand tons, meaning a total of 1.3 million tons, while global consumption of olive oil rose to 2.8 million tons.

It is also noted that the average selling price of the product last year was around 5 euros. Prices this year started at 7.5 euros and exceeded 9.5 euros per litre, with the average price today being 8.5-9 euros. The highest price based on today's data is €9.11 in Laconia Messinia, with the season almost over. Despite the high prices, Greek producers will not benefit due to lower production. It is noteworthy that the island of Crete harvested 130,000 tons last year, and this year it is questionable whether it will reach 25,000 tons, according to Mr. Chiltzakis. According to estimates, production throughout the country this year ranges to 70 thousand tons, which reflects a decrease of more than 50% compared to last year.

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