EU Commission: “Supply will be limited, prices will increase”
Spain, the largest producer… Experienced drought and heat waves
Prices continue to rise… Increase in related theft crimes
Due to extreme climate change in southern European regions such as Spain and Italy, the price of olive oil has more than doubled compared to the previous year.
According to the New York Times (NYT) on the 22nd (local time), the European Commission announced that olive oil production in EU countries such as Spain and Italy fell by 40% last year and will only recover to a very slight level this year. Olive oil supplies will be limited and prices will rise, the commission said.
Southern Europe accounts for more than half of global olive oil production. Among them, Spain, the world’s largest olive oil producer, recently saw its harvest fall by half due to drought and heat waves. Other major growing countries, such as Italy, Greece, and Portugal, are also experiencing poor olive harvest conditions due to the effects of climate change.
According to a survey by the International Monetary Fund (IMF), the price of olive oil soared to $9,034 (about 12.2 million won) per ton at the end of August. This is an increase of approximately 2.1 times compared to $4,247 at the end of last year.
According to IRI, an American data provider, the price of a 750ml bottle of olive oil product in October last year was about $9 (about 12,000 won). The current price of this product has been confirmed to be $11 (about 14,900 won), an increase of about 22%.
As the price of olive oil rose rapidly, related crimes also increased. In particular, last month, 50,000 liters of olive oil worth 500,000 euros (about 716 million won) were stolen from an olive oil factory in Andalusia, Spain. In addition, there was a theft of olive oil worth 300,000 euros (about 430 million won) from a farm warehouse in Greece.
“Consumers will face higher prices,” said an olive oil wholesaler from California, USA. The United States imports almost all of the olive oil it consumes from Spain and Italy.
Climate change, which ruined the olive harvest in the Mediterranean region, also had a negative impact on the cultivation of other crops, such as grapes in France and oranges in Florida, USA. The NYT reported that this rise in food prices has led to recent inflation and has put pressure on household budgets, contributing to the global economic downturn.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.