Olive Oil Producer Says Prices To Fall From Record Levels

(MENAFN- Yolo Wire) Spain’s %Deoleo (OLE), the world’s largest %OliveOil producer, says prices are likely to fall from all-time highs in the coming year.

The company is forecasting that prices for so called “liquid gold,” as olive oil is often called, should decline by half in coming months, descending from record levels.

A prolonged period of extreme weather and drought in southern Europe has severely impacted olive harvests in recent years, leading to skyrocketing prices for olive oil that is a cooking staple.

The shortage of olive oil and soaring prices has gotten so bad that it’s been blamed for a crime surge in Spanish supermarkets in recent months.

Extra virgin olive oil prices in Spain currently are at $6.33 U.S. per kilogram. That’s down about 19% on a monthly basis and 35% off a record high of nearly $10 U.S. earlier this year.

Spain accounts for more than 40% of the world’s olive oil production, making it a global leader when it comes to setting prices.

Prices are likely to fall further in coming months as harvests improve in in the key markets of Spain, Greece and Tunisia.

Deoleo, the maker of household olive oil brands such as Bertolli and Carbonell, said olive oil prices should fall to around 5 euros ($5.28 U.S.) per kilogram as the supply steadily improves.

However, the company added that climate change has created a “perfect storm” for the olive industry and crops worldwide, and that action is needed to avert global food shortages.

Deoleo’s stock is down 2% this year and currently trading at 0.22 Euros per share.

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