Olive oil prices soar after heatwave hampered Spanish harvest

Prices of olive oil in the UK have rocketed, stated a report on Sunday (8), citing UK’s biggest olive oil brand’s statement that the country could run out of supplies by autumn. 

High temperatures in Spanish province have been cited as one of the main reasons for this spike. Temperatures in the Spanish province of Andalucía soared to more than 100F (40C) last spring, according to the report, causing havoc during the early growing season in the region, known for producing more olive oil annually than the whole of Italy. 

Managing director of the UK’s biggest olive oil brand Filippo Berio UK, Walter Zanre told Times it was “a disaster”, raising concerns that the country could run out of olive oil by the autumn. 

“We have had to increase prices by 30 per cent and prices are likely to rise further,” he added.

The olive oil company estimates around 60 per cent of oil used in the UK is produced by Spain, with this quantity set to halve to 700,000 tonnes in 2023. 

According to reports, between December 2021 and last month, the price of the average bottle of olive oil increased by 11.9 per cent, with the cost of Britain’s bestselling bottle of olive oil, doubling to more than £11. 

Gary Lewis from the UK’s second-largest olive oil supplier, KTC, told the Times: “Olive oil will become more of a niche product. 

“Rising prices mean consumers have started to move away from it and into sunflower oil already.”

According to the grocery price index, recorded on Trolley, the average price of olive oil products in the UK has increased from £6.62 in December 2021 to £7.41 in December 2022. The highest jump was seen at Iceland, where prices rose by 37 per cent. 

The Co-op saw an increase of 22 per cent, closely followed by Morrisons which saw a 19.8 per cent increase of £0.90. 

Waitrose saw the least increase in price over the last year, increasing by £0.55 or 6.2 per cent. 

According to the British Retail Consortium, grocery bills rose by 13.3 per cent in 2021, following high inflation rates.