Olive oil is poised to become a luxury item in Cyprus and across Europe this year, with prices potentially exceeding €10 per litre and even reaching €15.
This surge in prices is driven by climate-change-driven adverse weather conditions that have significantly impacted olive oil production, particularly in Spain and Italy, the world’s largest olive oil-producing countries, agricultural organisations in Cyprus stress.
In statements to the Cyprus News Agency (CNA), agricultural organisations argue that prices of extra virgin olive oil have skyrocketed by at least 100% compared to last year. They are urging producers to show restraint in raising olive oil prices and are calling on the Ministry of Agriculture to intensify inspections.
Specifically, speaking to CNA, Kyriakos Kailas, president of the Panagrotikos Farmers’ Union, noted that the current international market price is around €8.60 per litre. He said, “While there has been an increase in price due to rising production costs, prices are on an upward trend as global olive oil production has decreased by 50%, attributed, among other factors, to poor yields and high temperatures.”
“We may see prices exceed €10 per litre,” he added, emphasising that the 100% increase in price compared to the previous year is not normal and is a matter of concern for everyone.
Kailas argued that a 40% price increase would be justified due to rising production costs, but the current shortage in production has led to a 100% increase, and prices may continue to rise.
“At the end of the day, households are affected from all sides,” he said. He added, “Olive oil is an essential commodity, and we do not want to see it become unaffordable or blended with other types of oils.”
Regarding olive oil production in Cyprus, Kailas stated that it has decreased by 50%, and the high temperatures have affected Cyprus as well, not just other European countries.
He called for more checks by the Ministry of Agriculture to prevent price manipulation, stating, “At times, when there are price increases, we see uncontrolled imports.”
Thomas Thoma, district secretary of the Union of Cypriot Farmers (Eka) in Nicosia-Keryneia, noted that “it seems that olive oil prices are very high compared to other years.” He added, “In major olive oil-producing countries like Greece, Spain, and Italy, the price of olive oil is around €8 to €9.” He also mentioned that “prices are certainly expected to soar, but no one knows where they will end up.”
“It appears that this year will not be good for olive oil, not just in Cyprus,” he said, attributing this development to climate changes, such as heatwaves and heavy rainfall with hail.
He further explained that the price is now twice as high compared to last year, partly due to rising energy prices.
Christos Papapetrou, secretary-general of the Panagrotiki Union of Cyprus (Pek), stated that “it is said that olive oil will become a luxury item this year,” pointing out that there is not much production, especially in Spain and Italy, which are the major olive oil-producing countries.
“Spain may only produce 50% of its normal production due to severe drought this year, and it is estimated that it will not exceed 600,000 tons of olive oil out of its normal 1,300,000 tons,” he said. He noted that foreign traders are already seeking olive oil at prices ranging from €8 to €10.