Higher olive oil prices were predicted in the 2014/15 harvest, in contrast to the 2013/14 harvest of last year. Starting in the summer of 2014, producer prices in Spain began to rise. As a result, the global price of olive oil has gone up this year.
For a review of the commodity market from this fall 2014, we’d suggest catching up on the following article, Olive Oil Commodity Market Update 2014/2015 Harvest.
In the meantime, here’s a review of where prices are now and a some suggestions for future planning to keep your cost of goods low.
Starting in June of 2014, olive oil prices began to rise in Spain. They continuously rose until December of 2014 (the end of the period in review), but leveled off for a brief period in October. Prices in December 2014 were 55% higher than a year before in Spain.
Italy experienced a similar trend, with olive oil prices increasing to 109% higher than the year before. In turn, prices for olive oil produced in Italy were also about double of those prices for olive oil produced in Spain, simply because their production levels were predicted to be so much less.
Olive oil prices from Greece saw a slight increase due to reduced crops, with prices 18% higher than the year before. Typically, prices in Greece are higher than in Spain, so their price increases were not as great and their final resting price in December of 2014 was still lower than the Spanish market.
Tunisia saw a slightly decline in prices over the fall of 2014, as crops were quite good and other producing countries (usually priced lower than them) saw price increase spikes.
If you are buying from Mediterranean countries, Tunisia has the lowest cost for olive oil at the moment. However, this always depends on the grade of oil that you purchase and if this is a highly produced grade of olive oil in that country.
Other olive oil producing countries that are outside of the Mediterranean sphere may have even better prices.
Right now, supply is as high as it’s going to be until next harvest.
Almost all of the olive oil in the world is produced by this time of year, because the harvest in the Mediterranean is over (it extends from October - January). Right now, the global supply of olive oil is only going to dwindle as we approach the harvest season in October.
As demand continues over the spring and summer, you can expect prices to slowly continue to rise over to match the pressure on the supply chain. Historically, this is what happens each year, and this year is no exception.
A Note From Centra Foods: We strategically buy from a variety of countries of origin depending on the commodity market. When sourcing, our focus is first on quality, then pricing, then country of origin. This allows you to focus on your business, and avoid tracking the global olive oil commodity market to get the lowest prices possible.