Lower demand, combined with new harvest quantities, has led to the recent easing of wholesale olive oil prices in Greece, putting an end to the earlier surge that had raised concerns among consumers about potential prices of up to 20 euros per litre on supermarket shelves.
Olive oil holds a crucial place as a primary cooking oil in Greece, a country with a population of 11 million and one of the world's highest per capita consumptions.
Recent transactions show wholesalers acquiring oil from producers at rates ranging from 7.5 to 7.8 euros per kilo. This shift can be attributed to the increased availability of quantities from the new 2023 harvest and decreased demand due to consumer wariness, ultimately ending the continuous surge in trading rates and retail prices.
Market analysts also note that producers store portions of the new harvest in anticipation of potential future price increases. Supermarket sales of olive oil in Greece reportedly dropped from 25,000 tons to 18,000 tons recently.
Globally, olive oil consumption has seen a decline of approximately 40%, with Spain, a long-time leader in production, experiencing a 17% decrease in demand.
Representatives from the sector reported that prices at the beginning of the season ranged from 8.5 to 9 euros per kilo, with the extra virgin variety still commanding higher rates due to lower production. Last month, prices reached 9.2 euros per kilo, but the most recent sale, between a cooperative of producers and a wholesale bottler, settled at 7.7 euros per kilo.
