The price of olive oil has soared by a third in just one month after poor harvests in Europe caused by the hot summer decimated production, according to a new report.
The latest research shows that prices of extra virgin Italian and Spanish oil have been rising throughout the year, but new data from commodity analysts Mintec revealed a 30 per cent month-on-month surge in recent weeks.
The latest report suggests that the key problem with this year's crops was the above-average dry and warm weather throughout the Mediterranean olive growing belt in May and June.
This affected the olive trees during the blooming period when moisture is vital to ensure olive growth and the eventual oil yield.
However, the problem was compounded in Spain as trees were already under stress as a result of record output of production last year.
In addition, trees in Italy continue to suffer from an olive fruit fly that lays its eggs in the olive and feeds on the fruit. The olive fruit fly or Bactrocera oleae, lays its egg in a hollow in the olive and when hatched the larvae tunnels its way out gnawing at the flesh destroying the fruit.
Only those larger farms with technical prowess to treat their trees with pesticides manage to reduce their losses.
Walter Zanre, managing director of Filippo Berio – one of the leading brands of olive oil - told The Grocer: 'Poor crops in Italy and Spain combined with the virtual absence of carryover stock in the Mediterranean make this the most difficult year I have ever seen for olive oil.'
Mintec said that Spain's 2014/15 production is forecast to be down 50 per cent year-on-year at 875,000 tonnes while Italian olive oil production is expected to be down 35 per cent year-on-year to 302,000 tonnes.
Loraine Hudson, an analyst at Mintec, said: "a drop in demand could cause prices to fall, however it is expected they will remain high due to poor crop production and quality.'
Last month, it emerged that the price of olive oil was expected to soar beyond £2.
(via DailyMail)
