In December, olive oil prices in Spain increased by 54,6% to the level of the same month in 2023. Over the last three years, the cost of the product in the country increased by 165,5%. The increase in prices is due to the drought, which led to a poor olive harvest and, as a result, a decline in processing. The European magazine ESM writes about this.
According to estimates by the Spanish Ministry of Agriculture, the country's olive oil production will gradually recover this season to 765,3 thousand tons, which is 15% above the level of the previous year but 34% below the average of the last four years.
“In the previous crop year, olive oil production reached a two-decade low of less than 700.000 tonnes,” said the ESM.
And given the rise in oil prices, the likelihood of Spaniards buying the product has decreased: consumption in the country fell by 2022% between November 2023 and November 20.
To support the industry, the government has reduced the VAT on olive oil to 5%. The authorities promise to completely eliminate this tax in the coming months.
Source: oleoscope (Russian)
