Expert puts date on big drop in supermarket olive oil prices in Spain

The new potential price is expected to be reasonable for both consumers and farmers, says Andalusian cooperative boss

SUR

Tuesday, 26 November 2024, 09:39

Olive oil prices will drop to around 5-6 euros a litre between December and January, according to an expert in the sector.

The price of extra virgin olive oil has recorded its first year-on-year fall in supermarkets in Spain (-2.5%), although it is a much smaller drop than that produced at source (-13%), according to data from consumers' organisation Facua. In order to gather the data, they looked at some 30 prices in six large distribution chains.

Rafael Sánchez de Puerta, general manager of the Dcoop Group and president of the olive oil sector of the Andalusian Agri-food Cooperatives, dared to put a date on the expected drop for consumers where, according to his estimates, olive oil will return to selling at around 5 to 6 euros a litre between December and January.

"It will happen when there is olive oil available in quantity on the market," he said, which he pointed out will start to happen in November, as October closed with a production of 35,000 tonnes, which is considered a low figure.

Sánchez de Puerta pointed out there is already a drop in prices on supermarket shelves, but this responds to "a certain rush" by some chains to lower prices, as "there is still not enough volume of purchases and stock" to justify it. He also pointed out that during periods of decline, the market tends to be blocked because buyers expect further reductions.

The general manager of Dcoop said he hoped the drop in olive oil prices "does not go too far", and continues to be sustainable for producers, which is why he said 5 to 6 euros per litre would be a reasonable price for both consumers and farmers. Less than this, he said, "would jeopardise the viability of many farms".

The president of the olive oil sector also said that the exact price of oil will be determined by three major unknowns: what the final harvest will be, both nationally and internationally, the recovery of consumption of olive oil that has suffered since prices have risen, and whether there will be rainfall to guarantee a good harvest next year.

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