Olive oil enthusiasts can rejoice as prices are set to plummet in the coming months. The leading producer of olive oil, Deoleo, has announced plans to cut prices in half following a period of soaring costs due to extreme weather conditions.
Harvests in southern Europe, the primary region for olive oil production, are slowly recovering from a prolonged period of drought and extreme weather. Deoleo, known for popular brands like Bertolli and Carbonell, anticipates a significant decrease in prices in the near future.
Miguel Ángel Guzmán, chief sales officer at Deoleo, shared with CNBC that the relaxation of prices is expected to begin between November and January, assuming stable weather conditions persist. The company plans to reduce prices from a record high of $12.39 per bottle to around 5 euros per liter.
The industry has faced challenges in recent years, with olive oil shortages impacting markets worldwide. Countries like Spain, Greece, Portugal, and Tunisia, all major olive oil producers, have experienced difficulties due to adverse weather conditions. However, the International Olive Oil Council forecasts stronger harvests this year, offering hope for an increase in production and a subsequent drop in prices.
While the outlook is positive, Guzmán notes that the industry is still experiencing price tension, particularly in higher quality oils such as Extra Virgin. Despite the progress made in improving harvests and stabilizing prices, challenges remain on the horizon.
In conclusion, olive oil enthusiasts can look forward to more affordable prices in the near future as the industry works towards normalizing market conditions. With improved harvests expected in key producing countries, consumers may soon enjoy the benefits of lower prices for their favorite olive oil products.
