In accordance with pricing trends observed in the olive oil sector according to Bloomberg, the European Commission projected on Monday that the surging olive oil prices in Europe will persist for another season, compelling consumers to make cutbacks in their consumption of this cherished staple.

The ongoing season, which commenced this month, is anticipated to yield a total production of 1.5 million tons, marking a mere 9% increase compared to the previous year. This modest growth is attributed to a recurring drought affecting olive growers.  Combined with limited stockpiles, these factors have propelled prices in crucial cultivation regions such as Jaen, Spain, to unprecedented levels—nearly tripling the five-year average.

This upsurge in prices has led to the persistence of high costs for producing traditional culinary delights like pizza and paella, even as inflation starts to recede in other sectors. The European Union (EU) is expected to witness a 6% decline in olive oil consumption during the 2023-24 season, and the bloc is projected to export approximately 10% less than the previous year, as indicated by the European Commission.

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Olive Oil Prices Reach Unprecedented Highs in 2023 Amidst Spanish Drought Crisis