[Olive oil prices spiked to fresh records as severe droughts in
major producing continue to crimp supplies — driving desperate
people to resort to stealing it.]
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PORTSIDE CULTURE

OLIVE OIL PRICES SURGE OVER 100% TO RECORD HIGHS, SPARKING COOKING
OIL THEFTS  
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Lee Ying Shan
September 18, 2023
CNBC
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_ Olive oil prices spiked to fresh records as severe droughts in
major producing continue to crimp supplies — driving desperate
people to resort to stealing it. _

Bottles of olive oil and sunflower oil at a Mercadona SA supermarket
in Barcelona, Spain., Bloomberg | Bloomberg | Getty Images

 

Olive oil prices spiked to fresh records as severe droughts in major
producing countries crimp supplies — and drive up thefts in cooking
oil.

Global prices for olive oil surged to $8,900 per ton in September,
driven by “extremely dry weather” in the Mediterranean, according
to a recent report by the United States Department of Agriculture.
Already, the average price in August was 130% higher compared to the
year before, and showed “no sign of easing,” USDA said.

Spain, the world’s largest producer and exporter of olive oil, has
been battered by an intense drought for months. The country also just
recorded its third hottest summer, with the average summer temperature
1.3°C higher than normal, according to state meteorological agency
AEMET.

    Further complicating matters is Turkey’s decision to suspend
bulk olive oil exports… The suspension has worsened the already
limited volumes in Spain.

    Kyle Holland oilseeds and vegetable oils analyst at Mintec

According to data from commodity market intelligence firm Mintec,
Spain’s olive oil production in the recent season has slumped to
around 610,000 tonnes — that’s a drop of more than 50% compared to
the usual 1.3 to 1.5 million tonnes.

“Adding to the complexity of the situation are concerns about
reduced production in other major European olive oil-producing
countries, including Italy and Greece, where drought conditions
prevail,” Mintec’s oilseeds and vegetable oils analyst, Kyle
Holland, told CNBC.

Greece and Italy are the second and third largest producers of olive
oil, according to the International Olive Council, an
intergovernmental organization made up of members that make up more
than 98% of olive production globally.

Olive oil thieves

Prices of olive oil in Spain’s Andalusia soared to €8.45 ($9.02)
per kilogram in September, Mintec’s benchmark showed. It marks the
“highest price ever recorded for Spanish olive oil” based on the
company’s data spanning over 20 to 30 years, and represents a
year-on-year jump of 111%.

The soaring prices, on what’s sometimes referred to as “liquid
gold,” have led some to steal it.

About 50,000 liters of extra virgin olive oil in one of Spain’s oil
mills, Marin Serrano El Lagar, were stolen in the early hours of Aug.
30, according to local media reports. That’s more than €420,000,
or about $450,000, worth of olive oil that the family business lost.
There have been no arrests so far.

That’s not all.

Shortly before that, thieves made off with 6,000 liters of extra
virgin olive oil worth €50,000 from Terraverne oil mill, Spanish
newspaper El Munco said. The company’s computers, tables, fans and
chairs were also reportedly looted during the heist.

The companies in question did not respond to CNBC’s request for
comment.

When will it end?

And there’s no respite in sight.

Mintec’s Holland cautioned that if stocks of olive oil continue to
be depleted by the drought, supplies could be exhausted before
October, where the fresh harvests usually arrive.

“Further complicating matters is Turkey’s decision to suspend bulk
olive oil exports,” said the analyst. “The suspension has worsened
the already limited volumes in Spain.”

Turkey, which is also a significant olive oil producer, has suspended
bulk exports until Nov. 1, a move resulting from the global surge in
prices.

* olive oil
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