Jusanji Crop Poor Due to Spanish Heatwave
Olive Oil Theft and Fraud Also Continue
'Olive Oil 17 Times More Expensive Than Crude Oil'
The price of olive oil is soaring uncontrollably. This is due to several years of poor harvests caused by heatwaves in major producing regions such as Spain.
Recently, the economic magazine The Economist reported, citing data from the International Monetary Fund (IMF), that as of last September, the price of olive oil rose 117% compared to the previous year, reaching an all-time high. The publication stated, "Until as recently as 2019, olive oil was seven times cheaper," and added, "Currently, olive oil is worth 17 times more than crude oil by weight."
The main olive oil producing regions are in Southern Europe, including Spain and Italy. Among these, Spain produces about half of the annual olive oil output, followed by Italy and Greece. The hot and dry summers and mild winters in these areas provide ideal conditions for olive trees to grow.
However, in recent years, abnormal weather such as summer heatwaves and the spread of diseases have dealt a severe blow to olive production. In April, temperatures in major olive-growing areas of Spain were 5 degrees Celsius higher than average, causing many olive trees not to bloom at all. To make matters worse, in Italy, a bacteria transmitted by insects has spread widely, inflicting fatal damage on olive trees.
Adding to this burden is the soaring cost of living. Olive producers have faced a double hardship of rising interest rates and ever-increasing fertilizer prices. As a result, olive production has decreased, and with reduced supply and rising prices, incidents of olive oil theft and counterfeit olive oil scams have troubled Spain and Italy.
On the 4th (local time), foreign media including The New York Times (NYT) reported that 11 members of a gang who sold the lowest grade olive oil, unsuitable for consumption, as premium edible olive oil were arrested by the police in Spain and Italy.
The Spanish Civil Guard and the Italian Carabinieri raided the gang’s workshops last month in Sicily and Tuscany in Italy, and Ciudad Real in Spain, seizing about 260,000 liters of oil that had been sold fraudulently as premium olive oil. The oil confiscated by the police was found to be of the lowest grade called 'lampante,' which has high acidity and poor taste and aroma, making it unsuitable for consumption and used only for industrial purposes or fuel.
Turkey has even banned large-scale exports of olive oil to defend against soaring prices. The Economist noted, "As a result, olive oil prices in Turkey have remained stable, but prices in other countries have risen dramatically."
Major olive oil producing regions are concerned about further declines in production. Due to the slow growth rate of olive trees, even planting new trees will take more than 10 years for olive oil supply to return to normal. Therefore, the sharp rise in olive oil prices is expected to continue into next year. The Spanish Ministry of Agriculture forecasts that next year’s olive oil production will decrease by about one-third compared to the average of the past four years.
Meanwhile, the surge in olive oil prices has also affected the domestic market. BBQ, famous for its 'Golden Olive Oil Chicken,' could no longer withstand the sharp rise in Spanish olive oil prices and introduced a new frying oil from October that mixes olive oil and sunflower oil in equal parts.
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