Climate change ignites olive oil prices
NEW DELHI : The healthiest of cooking oils now comes with an even heftier price tag as climate change-induced droughts, heat waves, and wildfires scorch olive plantations in southern Europe. Extreme weather events for the second straight year in the olive-producing region have nearly halved global harvests, driving up olive oil prices to a record. Benchmark retail prices rose to a record high of $9,000 per tonne in October, showed data from the US department of agriculture.
An August production estimate by the Spanish government proved the worst fears: A crisis in olive oil markets. Several Mediterranean countries suffered dry weather and droughts, further skimping supplies. Climate change’s influence on olive trees underscores the growing challenges global warming presents in food production.
With supplies from the Mediterranean regions becoming increasingly erratic, many consumers may have to now seek alternative sources that provide similar health benefits. “The supply tightness in olive oil is now getting even more dramatic if current production estimates materialize. We consider it likely that olive oil prices will soon reach or exceed $10,000 per tonne on the world market," Oil World, a top industry forecaster, said in an update on its website on 20 October.
In a May forecast, global price-setter Spain, the source of half the world’s olive oil supply, said production is expected to fall nearly 48% from the previous year. A severe summer and wildfires in the world’s biggest producer had decimated much of its crop. The supply crunch is said to be worse than last year, and its impacts are rippling across food markets, restaurants and homes, from Europe to the US and India, traders said.
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