Olive oil: Why prices in Greece are to increase
Source: ProtoThema English
Updates from the olive oil market is causing concern among both consumers and businesses. The end of August marks the close of the tourist season, especially across the Mediterranean where consumption peaks. At the same time, stocks are steadily declining ahead of the new harvest, driving prices upward.
According to figures from Oleista, an olive oil trading platform, the price of the “green gold” in Greece is on the rise. In the second half of August, wholesale deals were made at €4.80 per kilo.
On August 26, Oleista reported average wholesale prices of €4.10 per kilo for Greek extra virgin olive oil, €3.13 for virgin, and €2.13 for lampante (industrial-grade).
Further price hikes ahead
The market’s upward trend is fueled by shrinking inventories and forecasts of a weaker harvest.
Prolonged drought, combined with devastating wildfires in Spain, has reduced production. With annual output ranging between 1.4 and 1.75 million tons, the Iberian Peninsula acts as a global price barometer, as it accounts for nearly half of world production.
Greek olive groves are facing similar challenges from drought and high temperatures. Initial June estimates of a strong upcoming harvest are expected to be revised downward in October. Such a revision would trigger further price increases, adding extra pressure on household budgets as winter approaches.
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