Olive Oil Prices Expected to Fall After Last Year's Surge, But Drought Impacts Yields

Olive oil prices, which strained household budgets last year, are predicted to fall this year, offering some relief to consumers. However, a significant drought across key olive-producing regions is impacting yields and contributing to market volatility.

Speaking on Mega's "Society Hour MEGA," olive producer Myron Chiletzakis revealed that bulk prices at olive mills are currently ranging from €5-€7 per liter, down from €9-€10 last year. This allows suppliers to sell at similar prices, although finding tinned olive oil (typically 5 liters) below €120 remains a challenge.

The severe drought has significantly impacted olive production, both in quantity and quality. Many areas have reported drastically reduced yields. This, coupled with increased production costs like higher wages (€70-€80 per day) and rising prices for pesticides, water, and electricity, creates a complex market scenario.

Chiletzakis highlighted the influence of international markets on olive oil prices, noting that Italy and Spain play a significant role in setting prices. Recent market manipulation by these major producers has led to price fluctuations. For instance, the price per liter dropped from €7.80 to €5.80 in just ten days. He emphasized that European olive oil stocks are currently depleted, and the new harvest has yet to be fully released, contributing to the fluctuating prices. The drought, affecting both Greece and Italy, has drastically reduced the olive-to-oil ratio, with approximately 10 kilos of olives currently needed to produce a single liter of oil, compared to a typical ratio of 4:1 with adequate rainfall.

Regional bulk prices reflect the downward trend: Laconia saw prices at €6.30 per liter on Saturday, Crete at €5 on Sunday, and Messinia at €6 over the weekend. However, supermarket prices for bottled olive oil remain steady, ranging from €7.25 to €16.20 per liter, as this year's harvest is yet to hit the shelves.

While lower prices are anticipated, the drought's long-term impact on olive production and market stability remains a concern.