The drought in Spain has caused the price of olive oil to rise: more than 32.9% on average over a year.
Lower yields, theft, speculation and even counterfeiting are among the factors shaking up the sector.
TF1’s 13.00 sat down to meet the players in this crisis market.
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The weekend
Is olive oil becoming a luxury product? The price of this essential item in our kitchens can in any case become prohibitive. Its cost has increased by up to 40% over a year for certain brands. “Last year, for example, I sold this bottle for 7 euros. This year, I’m selling it for 11 euros.” testifies Paco Canet, an Andalusian olive grower, in the TF1 report above.
The main reason for this price increase is the fall in yields. “Temperatures too high prevented good flowering”, Paco explains, grabbing the branch of one of his olive trees. Look at this olive tree, you can see how small it is. [Il] is not quite dry, it has leaves but no fruit.” Global production is affected by the consequences of this fall in yields.
Several factors contribute to the climate disaster and worsen the situation. Especially the speculation of certain producers and distributors. Their technique consists of “buy olive oil massively, not necessarily to use it, but to further increase the price and make a profit when we put it back on the market”. explains Emily Mayer, research director of the consulting firm “Circana”.
“They cut the branch completely to steal olives”
Not to mention theft and counterfeiting, which are becoming commonplace. In Portugal they have become almost daily in some places. Antonio Pereira, olive grower, shows the TF1 team trees that have been completely damaged to steal their fruits. “They cut the branch completely to steal olives, it’s easier, it takes years of work and they broke everything. he regrets. This is the first time I have seen so many thefts. Even at the weekend I have to stay here with my family and go round to watch over the olive trees!”
The Food Safety Agency also notes adulteration of olive oils. Another practice that is the result of this price increase. “Look, they had removed the original labels and replaced them with extra virgin olive oil labels,” illustrates Gil Gouto, agent of the Portuguese Food Safety Authority.
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The Iberian Peninsula, mainly Spain, produces 1.5 million tonnes of olive oil, compared to only 5,000 tonnes for all French capacity. In Provence, the land area cannot compete with the huge Spanish farms. If there is no drought problem this year, production costs are higher than in Spain with its intensive agriculture. The liter price of Provençal oils can go up to 40 euros, although it is relatively stabilised. A product that can almost be tasted like a fantastic wine.
