Food inflation does not stop at the Spanish “sanctuary” of olive oil. Prices have risen sharply recently, also because of climate change. Consumers switch to other oil.
“Prices have gone up again,” complains a customer on Spanish television. “Clearly.” And another says that she now uses less olive oil for cooking and has stopped frying altogether. The quintessential staple of Spanish cuisine is becoming a luxury item for many. Almost ten euros for a liter bottle of olive oil: that is the new normal in the supermarkets.
Consumers are reducing their consumption. The edible oil association ANIERAC reports a significant decline in the first half of the year, especially for refined olive oil, which is suitable for cooking and frying. Or they dodge and cause a small revolution: According to industry information, for the first time there is more demand for sunflower oil than olive oil.
“The supplies are exhausted”
As for the price, Teresa Pérez of the Spanish Olive Oil Interprofessional Association gives little hope. The persistent drought is affecting the harvest, she explains in an interview with the state radio station rne. Demand exceeds supply. “After years of good olive harvests, the warehouses were sufficiently filled. That cushioned the effect of the lower supply for a while,” says the industry representative. “But stocks are gone. And we’re facing another harvest that won’t change the situation much.”
According to Pérez, the persistent drought is the main problem. “Only about a quarter of Spain’s olive groves are irrigated. The rest depend on rain,” says Pérez. “If it doesn’t rain, the trees adapt and bear less fruit. Perhaps this year’s harvest will be a little better than before, but the yield remains below average.” In addition, Spain exports almost 70 percent of its olives. “That affects the price.”
Is it speculation behind it?
Sugar, butter, rice, flour: prices for many foods in Spain have risen in recent months. The government tried to counteract this. There is temporarily no VAT at all for basic foodstuffs. For selected products, including olive oil, only five percent are currently due instead of the usual ten.
Prices are still rising, and Enrique García from the Spanish consumer protection organization OCU suspects on Spanish television that there is more to it than just the drought. “The cooking oil that is now on supermarket shelves at such high prices was once bought at lower prices,” says García. “There is some speculation movement that will no doubt exacerbate the rise in prices. We are therefore asking the government to look into this so that prices do not continue to rise.
Spray instead of canister
Spanish consumers are now trying to help themselves. For example, some use oil spray, which saves a lot. Other customers are looking for allies: just recently she saw a good offer for a large canister of olive oil, says a Spaniard. She struck it with a friend. The special offer is no longer valid – but she has taken precautions and has enough olive oil in stock.