Extra virgin olive oil is an emblematic product of the Mediterranean diet and one of the pillars of Spanish gastronomy. However, in recent times, its price has experienced a significant increase that has concerned consumers and producers alike. We will explore some of the reasons behind this trend.
1. Climate factors:
Changes in climatic conditions, such as prolonged droughts or periods of scarce rain, can affect the production of olives, reducing the amount of olive oil that can be extracted. This can lead to a lower market supply and, as a result, an increase in prices.
2. Production costs:
The process of growing and producing extra virgin olive oil involves a series of costs, ranging from the maintenance of olive groves to the processing of olives. Factors such as fuel price rises, fertilisers, agricultural wages and machinery costs can contribute to an increase in production costs, which in turn results in higher prices for the consumer.
3. International demand:
Spanish extra virgin olive oil has an excellent international reputation, which has boosted its demand in foreign markets. This growing demand, especially in countries such as the United States and China, can exert pressure on the supply available to the national market, thus contributing to the rise in prices in Spain.
4. Speculation and fluctuations in markets:
Raw materials markets are susceptible to speculation and fluctuations in supply and demand. Changes in global economic conditions, such as trade conflicts or financial crises, can influence the prices of extra virgin olive oil, generating volatility in the market and causing sudden increases in its price.
5. Quality and added value:
Extra virgin olive oil is distinguished by its high quality and nutritional properties, which makes it a premium product compared to other types of oil. Consumers are prepared to pay a higher price for a product of higher quality, which contributes to the increase in its value on the market.
The increase in the price of extra virgin olive oil in Spain can be attributed to a combination of factors, ranging from adverse weather conditions to increasing international demand and rising production costs. As these elements continue to exert pressure on the market, prices may remain high in the near future, which poses challenges for both consumers and producers of this precious Mediterranean product.
