What’s happening to the price of olive oil: Messinia producers and operators explain to CNN Greece

This year, consumers will say oil… oil, as well olive oil They are constantly getting more expensive and everything shows that the “rise” in prices will continue in the coming period as well.

Producers and operators of Messiniathe area in which It produces about 10% of Greek olive oil production And one One of the strongest international brandsShe spoke to CNN Greece about the reasons for the significant increase in prices.

Drought in the Iberian Peninsula caused prices to rise

The main reason for the increase in olive oil prices is related to the protracted drought in the Iberian Peninsula Spanish production declines for the second year in a row. Production has also been reduced Hellasas well as in Italy And turkey.

“It’s all about supply and demand. Since there’s not enough of it globally, the demand and the price have gone up. It’s a stock market, and olive oil has always been a commodity on the stock market, and that’s just this year Huge increases of up to 250% Compared to last year,” he said Dimitris Anagnostopoulos One of the olive presses is Ergo Anagnostopoulos olives.

“This year there was a combination of factors, precisely because the amount of oil produced across the Mediterranean was low, and prices rose significantly. The 2023 estimates also contributed to this.” A 50% decrease from last year’s production“, the chemist confirmed for his part Nikos KoutsoukosPresident and Co-Founder of the Kalamata Olive and Olive Oil School and a table and olive oil connoisseur.

What happens to Greek production?

In 2022, Greece produced about 330,000 tons of olive oil, and this year estimates indicate a decrease in production by 30% to 40%, according to what Agence France-Presse reported. Antonis ParaskevopoulosDirector of the Agriculture Directorate Kyparisias.

He explains it as There aren’t a lot of olive oil reserves eitherTherefore, demand will increase “The year of goodness is erased.” For producers.

But is the current increase in prices justified?

He added, “Currently, oil prices range between 7 and 8.5 euros per kilo. The highest prices relate to olive oils of excellent and balanced quality,” confirms Mr. Paraskevopoulos.

It is believed that the higher prices are justified due to increased demand as well Manufacturers from foreign networks buy olive oil at high prices even if they have a lossIn order to serve “ongoing” contracts and not lose their customers.

Mr. Anagnostopoulos also attributes the current high prices to the shortage of olive oil around the world, emphasizing this All production costs (oil, wages, electricity) increasedIncreases are not the same as justifying prices.

“The rise has come mainly from the shortage of olive oil as a quantity at the global level, and forecasts say – without anyone knowing for sure – that it will remain very high, perhaps even higher, and the new olive growing season is approaching.” Corner space is emphasized.

“Most people think that we are happy to increase prices. It is not so. “We are interested in the price on the shelf, which means that the product must be salable and available to most consumers in order to have dynamism in the market,” says the head of the Messinia Chamber. Vangelis Zigoros.

He stressed that agencies have long been asking the government to take specific measures in order to reduce costs, e.g Immediate reduction of the special tax on oil and fuel, as well as the value-added tax on food“So that the Greek family can survive.”

Good olive oil will now be for a few

Mr. poor man Stressing that when a product becomes expensive on the shelf, it now attracts a different type of consumer. Especially for premium quality oil, it is estimated that it will be very expensive, while there will also be other olive oils of second quality and price.

“It will only be for people who can pay for it or those who produce it,” Mr. Koutsokos emphasized.

No one knows what will happen in 2024

As for the year 2024, F. Paraskevopoulos He seemed optimistic about the possibility of resuming production with the recent rains in Spain, despite the trees suffering and exhaustion.

He stressed that “increasing production in Spain to 80% of the average production, which is one million and 400 tons, will change all the data.”