Olive oil prices are about to fall.
Olive oil's biggest producer plans to cut prices in half as the weather crisis that caused the price of “liquid gold” to soar in recent months appears to be over.
Deoreo, the maker of household olive oil brands such as Bertolli and Carbonell, says yields in southern Europe are gradually recovering from a long period of extreme weather and drought.
“We expect the relaxation in origin prices to begin during November, December and January, provided weather and crop conditions remain stable over the coming weeks,” said Miguel Ángel, Chief Commercial Officer of Deoleo. Guzman said. he told CNBC.
“If all goes well, it suggests prices could be on a downward trend through 2025, especially if the rains continue to favor production.”
Olive oil prices hit an all-time high of $12.39 per bottle this year, but Deoreo plans to cut the cost in half.
The Spanish company expects prices to fall from 10 euros per liter to around 5 euros next month.
“This price is reasonable given the increased production and will ease market tensions and facilitate gradual price normalization after a period of instability,” Guzmán said. .
The good news follows years of worldwide olive oil shortages, which Guzman described as “one of the most difficult periods” in the industry's history.
Olive oil producing countries such as Spain, Greece, Portugal and Tunisia, which have been plagued by drought and extreme weather, are expected to increase their harvests this year, according to the International Olive Oil Council.
Yassin Mahjoub/SIPA/Shutterstock
However, the industry is not completely out of the woods yet.
“Although there have been steps toward improvement, it is not entirely accurate to say that the crisis is over,” Guzman said.
“Olive oil prices, especially for high-quality oils such as extra virgin, remain under stress.”
