Over 100% olive oil prices drive cooking oil robbery:- Heavy droughts in major producing countries have cut down on supplies and led to more thefts of cooking oil. This caused olive oil prices to reach all-time highs.
A new report from the US Department of Agriculture says that “extremely dry weather” in the Mediterranean caused the price of olive oil to rise to $8,900 per tonne in September. And in August, the average price was 130% higher than the same month last year. The USDA said there were “no signs of easing.”
Over 100% olive oil prices drive cooking oil robbery
Spain, which makes and sells the most olive oil in the world, has been hit by a terrible drought for months. The average summer temperature was 1.3°C higher than usual, making it the third hottest summer on record for the country, according to the state meteorological agency AEMET.
Turkey’s decision to stop exporting large amounts of olive oil makes things even more complicated… The suspension has made the already low volumes in Spain even worse.
Mintec, a company that tracks the commodities market, says that Spain’s olive oil production has dropped to about 610,000 tonnes this season, compared to the usual 1.3 to 1.5 million tonnes. This is a drop of more than 50%.
- “It’s getting more complicated because of worries about lower production in other major olive oil-producing countries in Europe, like Greece and Italy, where drought conditions are common,” Kyle Holland, an oilseeds and vegetable oils analyst at Mintec, told CNBC.
- The International Olive Council, which is made up of governments that produce more than 98% of the world’s olive oil, says that Greece and Italy are the second and third largest producers of olive oil, respectively.
Thieves of olive oil
- With Mintec’s help, the price of a kilogramme of olive oil in Andalusia, Spain, went up to €8.45 ($9.02). It’s the “highest price ever recorded for Spanish olive oil” based on the company’s data from the last 20 to 30 years, and it’s a 111% increase from last year.
- Due to its rising value, what is sometimes called “liquid gold,” some people have stolen it.
- According to news sources in Spain, thieves broke into Marin Serrano El Lagar, an oil mill, early on August 30 and stole about 50,000 litres of extra virgin olive oil. The family business lost more than €420,000, or $450,000, worth of olive oil. So far, no one has been caught.
Not only that.
- The Spanish newspaper El Munco said that thieves stole 6,000 litres of extra virgin olive oil worth €50,000 from the Terraverne oil mill not long before that. During the theft, the company’s computers, tables, fans, and chairs were also taken.
- CNBC asked the companies in question for comments, but they didn’t answer.
- When is it going to end?
- There’s no end in sight.
- Holland from Mintec warned that if the drought keeps reducing olive oil supplies, they might run out before October, when the new harvests usually come in.
- “Turkey’s decision to stop exporting large amounts of olive oil has made things even more difficult,” the analyst said. “The suspension has made the already low volumes in Spain even worse.”
- Because of the rise in prices around the world, Turkey, which also makes a lot of olive oil, has stopped exporting large amounts of it until November 1.
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