Climate change driving up olive oil prices to an all-time high

The healthiest cooking oil is now even more expensive as climate change-induced droughts, heat waves, and wildfires scorch olive plantations in southern Europe.

Image source: Pixabay

The impact of climate change on olive trees highlights the growing challenges that global warming poses to food production. For the second year in a row, extreme weather events in the olive-producing region have nearly halved global harvests, driving up olive oil prices to an all-time high.

According to US Department of Agriculture data, benchmark retail prices reached a record high of US$ 9,000 per tonne in October.

The Spanish government’s August production estimate confirmed the worst fears: an olive oil market crisis. Several Mediterranean countries experienced dry weather and droughts, reducing supplies even further. As supplies from the Mediterranean regions become more erratic, many consumers may be forced to seek out alternative sources that provide comparable health benefits.

As per a top industry forecaster, “the supply tightness in olive oil is now getting even more dramatic if current production estimates materialise. We consider it likely that olive oil prices will soon reach or exceed $10,000 per tonne on the world market.”

In a May forecast, global price-setter Spain, which supplies half of the world’s olive oil, predicted that production would fall nearly 48% from the previous year. A harsh summer and wildfires had decimated much of the crop in the world’s largest producer.