“Liquid Gold”: An Olive Oil Shortage

Olive Oil Crisis: Record Prices and Climate Impact

The global olive oil industry is currently facing an unprecedented crisis characterized by a severe shortage that has driven prices to record highs. This economic pressure has not only shocked veteran industry analysts but has also fueled a significant crime wave and raised serious concerns regarding food insecurity for those who rely on this staple of the Mediterranean diet.

According to Kyle Holland from Mintec, the primary driver behind this instability is extreme weather fueled by climate change. Production in Southern Europe—specifically in Spain, Italy, and Greece—has been devastated. Spain, which typically accounts for over 40% of global production, saw its output plummet to approximately 666,000 metric tons during the 2022/2023 campaign, a stark contrast to its usual 1.3 to 1.5 million metric tons.

While recent favorable rains in March and April have slightly cooled the price upswing and improved production forecasts, the market remains volatile. Dwindling reserves suggest that sudden price jumps are still likely. Vito Martielli of Rabobank emphasized that the current price volatility is unlike anything seen in over 20 years, signaling a “new normal” for the sector.

Experts like Helena Bennett of the Green Alliance UK directly attribute these record-breaking costs to the climate crisis. Furthermore, the European Environment Agency warns that European nations must brace for “catastrophic” consequences as climate change continues to disrupt economic stability and agricultural output throughout the 21st century.