Oils are becoming more expensive
The price of olive oils have experienced an average rise of 40% in recent times, according to data published by the administration. Compared to average prices for Lampante oil (the purest olive oil) of 1.65 to 1.70 euros per kilogram over the course of the last three years, the current price has risen to around 2.40 euros. This sharp increase is due to the fact that a very low harvest is expected as a result of drought, although large reserves should ensure that there is no interruption to supplies.
Olive oil production is one of the sectors that has suffered one of the most severe price crises in the recent past. In the last season record production levels of 1,610,000 tons were achieved, to which imports of 40,000 tons were added. Given this level of availability, domestic demand has stabilized at some 550,000 tons per annum. By contrast, exports in the last season broke all records, reaching 827,000 tons.
The high yields of the last three years, between 1.4 and 1.6 million tons, resulted in a drop in prices to average levels of between 1.65 and 1.70 euros per kilogram for Lampante olive oil, compared to average production costs of 2.30 euros, according to figures from the Ministry of Agriculture.
The fall in prices did not lead to an increase in demand and, in order to solve the problem of surpluses, the European Administration granted aid for private storage for just over 200,000 tons, which was hoped to have a positive effect on the market.
