After an impressive increase in recent years due to drought, the price of this product, very popular with the French, should soon decrease. Excellent news for our taste buds and our wallets!
With this context of never-ending inflation – with around 20% increase on average for food products over one year! –, all products are affected by the price increase. For a while now, olive oil lovers in France have seen the price of their favorite product skyrocket. With an increase of 70% in three years, olive oil has become a luxury product for many households. On the shelves, a liter often exceeds 12 euros, compared to 7 euros on average in 2021 – and even 4 euros in brands like Lidl or Aldi. Liquid gold has never lived up to its name so well!
This surge is largely due to an exceptional drought in Spain, the main producing country – 80% of the olive oil we consume in France is produced there – which has seriously affected harvests, creating a shortage which impacted the entire production chain. Usually oscillating between 3 and 3.5 million tonnes, harvests fell by almost a quarter during the winter of 2022-2023, before dropping to just over 2 million tonnes of olives harvested in winter. last.
However, after these months of price tensions, consumers can finally expect good news. According to the latest market analyses, the price of olive oil is finally expected to fall. This decrease is partly explained by the spring rains in Spain, which will allow a more generous harvest in the months to come. The country could produce 60% more olive oil compared to last year. Harvests also look promising in Greece, the third largest European producer.
According to the most optimistic forecasts, consumers could soon save up to 3 euros per liter. In Spanish supermarkets, the drop is already visible on certain bottles. In Spain, a liter of extra virgin olive oil now costs between 8 and 9 euros. A sharp fall which is also due, in addition to the drop in market prices of around 12%, to the Government’s decision to eliminate VAT on olive oil last July.
Although this drop is eagerly awaited, we should not rejoice too quickly. The reduction in prices will probably not be as rapid or as significant as the increases recorded in recent months. In France, everything is played out during negotiations between manufacturers and mass distribution players. In addition, we will have to remain vigilant regarding future climatic conditions, which are still uncertain. For now, consumers can nevertheless hope to soon find more accessible prices for this flagship product of Mediterranean cuisine, certainly from this winter.