Olive Oil Prices Expected to Halve from Record Levels, Says Deoleo CEO

According to an interview with CNBC, the CEO of Deoleo, the world’s largest olive oil producer, has predicted a significant drop in olive oil prices over the coming months. Following a year of soaring costs due to extreme weather conditions and reduced harvests in key producing regions like Spain, prices are set to halve from record highs.

In the interview, Deoleo CEO Ignacio Silva highlighted that olive oil prices had reached unprecedented levels, driven by one of the worst droughts in recent history, which severely impacted Spain’s olive harvests. However, with improved weather conditions and a more stable production forecast for the coming year, the global market is expected to see a correction.

“Prices will gradually adjust,” Silva told CNBC. “We anticipate a return to more typical price ranges, which will make olive oil more accessible for consumers worldwide.”

What Caused the Record Prices?

Spain, responsible for nearly half of the world’s olive oil production, has faced significant challenges due to climate change. Droughts, heatwaves, and other environmental factors led to a sharp decline in olive yields, causing a supply shortage that sent prices skyrocketing. At their peak, prices had nearly doubled in some markets, leaving producers and consumers alike struggling to adapt.

Impact on Portugal and Other Markets

Portugal, another key player in the olive oil industry, also felt the ripple effects of the Spanish drought. Portuguese producers saw an increase in demand as buyers looked to alternative sources. With stabilizing prices, Portuguese olive oil exports are expected to remain strong, offering an opportunity for growth in the global market.

A Positive Outlook for 2024

As the olive oil industry recovers, experts predict that reduced prices will restore consumer confidence and increase demand. This correction could also foster innovation and sustainability within the sector, ensuring that producers are better prepared to handle future challenges.

For lovers of olive oil, the prospect of more affordable prices is welcome news, signaling the return of this Mediterranean staple to everyday tables around the world. As the market adjusts, both Spain and Portugal will play critical roles in maintaining supply and quality.