Spanish olive oil producers warn of market speculation and rising costs

Agricultural organizations in Spain are raising concerns regarding the olive oil market, citing potential speculation and production challenges. ASAJA Extremadura has denounced an “artificial” market situation, arguing that current prices do not cover production costs for farmers. They noted that production costs in Andalusia were estimated at 5 euros per kilo in 2023, a figure that does not account for subsequent increases in fuel, fertilizers, and phytosanitary products.

Production is also facing environmental pressure, as traditional olive groves suffer from significant water stress due to recent heatwaves. This could lead to further harvest reductions in September. Current market data shows a final harvest of approximately 1,300,800 tons against annual outflows of 1,167,000 tons, with total stocks at 568,000 tons.

Recent price data from various sources shows varying rates for different oil grades. For the week of August 7 to 13, POOLRED reported average prices in Jaén at 3.19 euros, with Extra Virgin Olive Oil at 3.33 euros. The Junta de Andalucía reported August 3 to 9 averages of 3.44 euros for Extra Virgin Olive Oil, while the Ministry of Agriculture, Fisheries and Food recorded a weekly average of 3.23 euros in late July.