Drought and inflation cause olive oil sales to fall

Latest data corresponding to 2023 shows decline in olive oil sales. Extra virgin olive oil was hit the hardest., with sales of 103 million litres, down 18% from the previous year’s sales. Two main factors came together against this circumstance: the problem of drought and rising inflation.

Severe drought leads to crisis in olive oil production

One of the main reasons that caused decline in olive oil sales in Spain this is without a doubt severe drought this affects the main mining areas, as is the case with Andalusia. This unfavorable meteorological situation, caused by the lack of rain and the resulting decrease in water resources, led to production crisis.

The decline in the olive harvest has led to a decrease in oil production, which has led to an increase in its price. It did the consumer is looking for an alternative to other types of cheaper vegetable oilscausing more collapse in olive oil sales in supermarkets. In this regard, the growth in consumption of pomace oil is significant, which increased by 14%.

Another important player is entering the picture: rising inflation.

Besides the decline in olive oil production caused by the drought crisis, there is another important reason that has caused the drop in sales. It’s nothing more than rising inflation is affecting our economy, since the war in Ukraine began in February 2022. This military conflict has serious economic consequences throughout the world. The most noticeable is the rise in energy and food prices, as happened with olive oil.

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