By New York Post (U.S.) | Created at 2024-11-16 22:00:46 | Updated at 2024-11-22 10:03:31
5 days ago
Olive oil prices are about to dip.
The largest producer of olive oil plans to slash prices in half now that the weather-fueled crisis that has caused the “liquid gold” to skyrocket in recent months appears to be over.
Harvests in southern Europe are slowly recovering from a prolonged period of extreme weather and drought, according to Deoleo, the maker of household olive oil brands such as Bertolli and Carbonell.
“The relaxation of prices at origin is expected to begin between November, December and January, provided that weather and harvest conditions remain stable in the coming weeks,” Miguel Ángel Guzmán, chief sales officer at Deoleo, told CNBC.
“Indications are that if everything develops normally, especially if rains continue to favor production, we could see a downward trend in prices throughout 2025.”
Olive oil prices reached a record high of $12.39 per bottle this year — a jaw-dropping cost Deoleo plans to cut in half.
The Spanish company expects prices to fall from 10 euros to around 5 euros per liter in the coming month.
“This price would be reasonable in a context of increased production, which would ease market tensions and facilitate a gradual normalization of prices after a period marked by volatility,” Guzmán said.
The good news follows years of olive oil shortages across the globe, described by Guzmán as “one of the most difficult moments” in industry history.
Olive oil-producing countries plagued by drought and extreme weather, including Spain, Greece, Portugal and Tunisia, are expected to see stronger harvests this year, according to the International Olive Oil Council.
The industry is not completely out of the woods yet, however.
“Although there have been steps towards improvement, it would not be entirely accurate to say that the crisis is over,” said Guzmán.
“We are still going through a phase of tension in olive oil prices, especially in the higher quality oils, such as Extra Virgin.”
