The price of extra virgin olive oil has surged by almost a quarter this year as a result of drought conditions in the Mediterranean, reports the Financial Times.
The paper says that output in Greece, Italy, Tunisia and Spain is forecast to 'fall sharply' this year, with global production expected to decrease by 14%.
Supply And Demand
The global demand for olive oil has increased by 73% over the past 25 years, and is rapidly growing in markets such as Australia, Brazil, and China.
However, the supply issues resulting from adverse weather conditions will lead to further increases in the price for olive oil in supermarkets in Europe and the US, according to the paper.
Retail olive oil prices in Europe have already risen by an average of 26% in the two years to 2016.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
