Extra virgin olive oil could reach more than £16 a litre next month as global production plummets to its lowest level in more than 10 years.
While production is improving in Spain and Italy following extreme weather conditions in recent years, this is likely to be offset by lower production in Mexico, Turkey and in Greece, where there is expected to be up to a 60% drop, The Guardian reported.
According to the International Olive Council (IOC), under 2.3m tonnes of olive oil are expected to be produced this year – a significant decline from the 3.4m produced in 2022.
Industry insiders told the publication that the price of a litre could top £16 in May, a further rise from £14 earlier this year, as demand is forecast to exceed supply.
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It comes as premium brands such as Belazu and Odeysa are currently selling for more than £18 a litre.
According to the Office for National Statistics (ONS), the price of olive oil has more than doubled since 2018 and in the year to March, the average price of a litre bottle rose 39% to just over £8.
Last month, produce prices in Italy and Spain increased by more than 60% and more than 80% in Greece, according to data from IOC.
It’s not the first time the price of olive oil has spiked in the UK.
In 2022, Acesur, which supplies the UK’s biggest supermarkets, warned of price rises between 20% and 25% as Spain, Italy and Portugal experienced “extreme” temperatures.
Last year, the ONS found olive oil to be among the products that have seen the biggest price rises in the 12 months to March 2023, up 49%
