Olive oil prices increase due to the war in Ukraine

After months of Russian hostilities in Ukraine and signs of an economic downturn, the olive oil sector is suffering across Europe.

According to the European Commission’s summer report on the EU agricultural market, world agricultural prices have soared by 30% since the start of the invasion, largely due to the general increase in production costs (fertilisers, electricity, heating, transport, refrigeration, etc.) linked to the activity. Uncertainty and lower expectations for olive production in the coming year are also playing a role.

The Commission also estimates that these higher production prices will gradually be passed on to the prices paid by European consumers, so that a rise in the price of the product can be expected. One of the foreseeable consequences is that consumers will replace their olive oil purchases with other oils of lower added value, in order to avoid the harmful effects of inflation.

As for now, as Oleo magazine reports in its July issue, national prices for virgin olive oil in Spain and Greece have reached 340 euros per 100 kg, which is 19% and 16% higher, respectively, than the average prices of the last five years. Curiously, and despite the above, olive oil consumption in the EU continues to grow and is expected to be 11% higher in the 2021/2022 campaign than in the previous year.

In Ralda+Friends we wish the end of all wars for everyone’s sake. There will always be better ways to resolve any conflict.

 

Alfredo & Pierre RALDA