Olive Oil Price Divide: A Tale of Two Markets
Prepare yourself, olive oil lovers, because the price of your favorite elixir is heading in two dramatically different directions. While Spanish and Portuguese harvests have been bountiful, leading to a significant drop in prices for widely consumed European blends, the Italian olive oil picture paints a starkly different story.
A Global Glut Drives Prices Down
“We must differentiate between Italian olive oil and oil produced in the rest of Europe,” explains industry expert Zefferino Monini. “The harvests in Spain and Portugal have been excellent this year.
Considering that community oil blends make up 85% of bottles on supermarket shelves, prices are falling well below the ten euros recorded last year. More generally, the global abundance of extra virgin olive oil is putting downward pressure on prices.”
A Bleak Outlook for Italian Producers
However, the Italian olive oil landscape is anything but cheerful. “The initial forecasts for the 2024-2025 campaign were overly optimistic,” Monini observes. “It appears that there’s going to be very little oil this year. Some are already talking about the worst harvest since 1940. This scarcity is driving Italian olive oil prices skyward.”
The Umbrian region, known for its exceptional olive oil, exemplifies this trend. Prices have recently exceeded 11 euros per kilo, highlighting the steep cost of this prized product.
Two-Speed Olive Oil Market Emerges
Consumers are facing a two-speed olive oil market. The more widely consumed European blends, predominantly found in supermarkets, are becoming more affordable.
Conversely, Italian olive oil, renowned for its quality and unique terroir, commands a premium price.
Is Italian Olive Oil Overpriced?
Despite the high cost, Monini argues that not all Italian olive oil is exorbitantly priced. “If produced in the plains, with the assistance of mechanical harvesting,” he asserts, “olive growers should not sell it for more than 5-6 euros per kilo. However, I acknowledge that in hilly areas, where manual harvesting is necessary, production costs are higher, justifying prices of up to 10 euros.”
What factors are contributing to the increase in olive oil prices in Italy?
## Olive Oil Price Divide: A Tale of Two Markets
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**Host:** Welcome back to the show! Today, we’re diving into a fascinating story about a culinary staple beloved by millions: olive oil. As it turns out, the price of this liquid gold is heading in two dramatically different directions, creating a real divide in the market. Joining us to break it all down is food industry expert, Alex Reed. Welcome to the show!
**Alex Reed:** Thanks for having me.
**Host:** So, let’s start with the big picture. We’re hearing reports of olive oil prices plummeting in some parts of Europe. Can you explain what’s going on?
**Alex Reed:** Absolutely. Spain and Portugal have enjoyed bumper harvests this year, resulting in a surplus of olives and consequently, a significant drop in prices for the widely consumed European blends. Think of those affordable, everyday olive oils found in most supermarkets – those are likely seeing a price decrease. [[1](https://www.nytimes.com/2023/10/22/business/olive-oil-price.html)]
**Host:** That’s great news for consumers who rely on those blends. But what about Italian olive oil?
**Alex Reed:** That’s where the story takes a turn. Italy is facing a very different situation. Factors like climate change and disease have impacted their olive harvest, leading to scarcity and a sharp rise in prices.
**Host:** So, essentially, we’re seeing a “tale of two markets” – abundance and lower prices in some parts of Europe, and scarcity and higher prices in others, particularly Italy.
**Alex Reed:** Exactly. This highlights the importance of understanding the origin of your olive oil and being aware of the factors influencing its price.
**Host:** What advice would you give to consumers navigating this price divide?
**Alex Reed:** My advice is to be informed. Read labels carefully, understand where your oil comes from, and be prepared to adjust your expectations and perhaps your budget if you’re a fan of high-quality Italian olive oil.
**Host:** Excellent advice. Alex Reed, thank you so much for shedding light on this fascinating and complex issue.
**Alex Reed:** My pleasure.
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