The price for extra virgin olive oil (EVOO) has been on the rise due to low supply stemming from poor harvests. According to Sylvain Charlebois, a professor of food distribution at Dalhousie University, the price of EVOO in Canada has increased by 15.2 percent between January and late March. The average cost for a one litre bottle of EVOO in Canada is now $16 compared to $14 in January. The low supply is attributed to climate change, specifically droughts in Europe over the past three years, which have impacted olive harvests in major producing countries such as Portugal, Spain, and Greece.
International olive oil expert Fil Bucchino noted that Spain, the largest producer of olive oil, experienced a 62 percent decrease in production last year. This decrease in production has led to a significant increase in prices worldwide. Overall, global production of olive oil has declined from 3.3 million metric tonnes in 2021/22 to 2.31 million metric tonnes in 2023/24. The last three years have been particularly challenging for olive harvests due to a combination of factors including cold and wet spring conditions, followed by record-breaking hot temperatures and droughts that caused fruit to drop.
Charlebois believes that the volatility of prices can drive consumers away from purchasing EVOO, leading them to choose substitutes such as canola or vegetable oil. However, EVOO remains a staple in many European cultures and some countries have reserve supplies that can be used to prioritize domestic markets if supply runs low. Bucchino remains optimistic about the future of olive oil, suggesting that the higher prices of mass-produced EVOO may lead consumers to consider purchasing more premium products that offer better value for a slightly higher cost.
Despite the challenges facing the olive oil industry, experts like Bucchino emphasize the value of good quality olive oil, noting its fruity, bitter, and spicy qualities that enhance the overall quality of meals. While prices for EVOO are currently high, there is hope that consumers will continue to seek out and appreciate the unique characteristics and flavors that high-quality olive oil can offer. As the industry navigates through these difficult times, it is important for consumers to understand the reasons behind the price increases and to consider the long-term benefits of investing in premium olive oil products.
