The scorching heat experienced in Spain for two consecutive years limited the olive harvest. This situation caused a price increase that surprised both consumers and industry officials.
Spain produces more than 40 percent of the world's olive oil production. This makes Spain a global reference for prices.
Deoleo's sales manager, Miguel Angel Guzman, said in an emailed statement to CNBC: "We are facing one of the most difficult moments in the history of the industry. High interest rates combined with strong inflation and negative olive oil harvest forecasts in terms of quantity and quality due to the drought cycle." "It caused prices to increase significantly," he said.
Extra virgin olive oil prices in the Andalusia region of Spain reached a record level of 9.2 euros ($9.84) per kilogram in January. Later, prices retreated slightly due to beneficial rains in March and April.
"We still have months ahead until we know the possible volumes of the 2024/2025 harvest, and until then prices will continue to be volatile. In the meantime, the sector needs a radical transformation," Guzman said.
