First, the price of edible oils has been raised by the war in Ukraine, but now the prices are raised by the weather conditions.
Drought inoculates the olive oil harvest in Spain, which drives up the world market prices of edible oil, reports the Reuters news agency.
Spain generally produces around 40 percent of the world’s olive oil, making it the largest olive oil producing country. According to the EU Commission, Spain’s oil production is estimated to be halved this year compared to last year.
The heat hindered the flowering of olive trees last spring, and in the summer the growth of olives was plagued by drought in Spain, Italy and Portugal, which are also important olive oil countries.
Instead, a better harvest than last year is expected in Greece. However, the EU’s third largest oil producing country is not able to make up for Spain’s production shortfall, Reuters reports.
“This is a disaster,” says the head of the Spanish Association of Edible Oil Bottlers Primitivo Fernandez To Reuters, referring to the effects of the drought, the economic situation and the war started by Russia.
Last year, the price of olive oil rose by about 60 percent, reports Reuters. At the same time, the demand for olive oil in Spain has decreased by eight percent.
The war in Ukraine led to a decline in sunflower oil production, which also increased the price of other edible oils. At the moment, price pressure is also caused by further increased production costs.
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