Olive oil costs are about to dip.
The biggest producer of olive oil plans to slash costs in half now that the weather-fueled disaster that has brought about the “liquid gold” to skyrocket in current months seems to be over.
Harvests in southern Europe are slowly recovering from a protracted interval of utmost climate and drought, in response to Deoleo, the maker of family olive oil manufacturers corresponding to Bertolli and Carbonell.
“The relaxation of prices at origin is expected to begin between November, December and January, provided that weather and harvest conditions remain stable in the coming weeks,” Miguel Ángel Guzmán, chief gross sales officer at Deoleo, advised CNBC.
“Indications are that if everything develops normally, especially if rains continue to favor production, we could see a downward trend in prices throughout 2025.”
Olive oil costs reached a file excessive of $12.39 per bottle this yr — a jaw-dropping price Deoleo plans to chop in half.
The Spanish firm expects costs to fall from 10 euros to round 5 euros per liter within the coming month.
“This price would be reasonable in a context of increased production, which would ease market tensions and facilitate a gradual normalization of prices after a period marked by volatility,” Guzmán mentioned.
The excellent news follows years of olive oil shortages throughout the globe, described by Guzmán as “one of the most difficult moments” in business historical past.
Olive oil-producing nations affected by drought and excessive climate, together with Spain, Greece, Portugal and Tunisia, are anticipated to see stronger harvests this yr, in response to the Worldwide Olive Oil Council.
Yassine Mahjoub/SIPA/Shutterstock
The business shouldn’t be utterly out of the woods but, nonetheless.
“Although there have been steps towards improvement, it would not be entirely accurate to say that the crisis is over,” mentioned Guzmán.
“We are still going through a phase of tension in olive oil prices, especially in the higher quality oils, such as Extra Virgin.”
