UK shoppers are being warned that olive oil prices could rise by up to 25% in the coming months, as a severe heatwave in Spain devastates olive crops. Spain produces nearly half of the world's olive oil, but extreme temperatures, drought, and lack of rainfall have hampered production.
Supplier Acesur, which packs own-label brands for Sainsbury's, Tesco, Waitrose, Morrisons and Asda, told the BBC that the halt in production will inevitably lead to higher prices. Export manager Miguel Colmenero said customers could see increases of 20-25% when contracts are renewed.
The heatwave has already pushed global prices up, with extra virgin olive oil rising to its highest level this year, up 7.3% on the previous month and 14.2% year-on-year, according to Mintec Research Group. Spain is forecast to produce only one million tonnes this season, down from 1.4 million last year.
Colmenero described the impact as "drastic", noting that there will be a three to four month lag before price rises reach supermarket shelves due to existing 12-month contracts. However, some shoppers have already reported steep increases, with a bottle of La Espanola extra virgin olive oil rising from £2.85 to £7.05 at Tesco, prompting accusations of "daylight robbery".
