Why the Italian olive oil price is rising

The price of a liter of olive oil in Italy fluctuates every year. The price depends on a variety of factors, including weather conditions, pest pressure, global demand and various political and economic developments.

The 2023 price drivers in brief:

• 1. Catastrophic harvest throughout the EU due to climate change
• 2. Global competition: companies are increasingly buying Italian olive oil
• 3. Increased energy costs: higher glass prices and increased transportation costs

The climate and the 2023 olive harvest

Unusual weather conditions, such as extreme drought or unexpected periods of frost, can have a significant impact on olive production.

Specifically, some areas such as Calabria and Apulia experienced relatively favorable conditions in 2023. Others, such as Sicily and parts of northern Italy, had to contend with extreme weather events that affected harvest volumes and the quality of the oil.

Drought, frost and flowering time

Spring is a crucial phase for olive trees, as they bloom during this time. Ideally, the conditions should be mild to promote good flower development. However, some regions suffered from drought, which affected flowering and therefore the harvest. Some areas also experienced late frosts in 2023, which damaged the blossoms.

Summer heat and drought

The summer brought extreme heat and persistent drought. In some parts of Italy, historically low levels of rainfall were recorded and everyone remembers the images of dried-up rivers. Although olive trees are adapted to the Mediterranean climate, prolonged drought affects the size and quality of the olives. In a drought, the tree can only feed a few olives, which remain smaller overall and contain less oil.

Fall and harvest time

Ideally, the weather should be dry during this time. Last season, however, there was unexpected rainfall in some regions, which delayed the harvest and increased the risk of olive diseases and the appearance of the dreaded olive fly.

The global situation on the olive oil market

The 2023 olive harvest was not only poor in Italy. The whole of southern Europe is affected. Yields plummeted in Greece and Spain. As a result, bulk buyers are desperately looking for olive oil everywhere on the market. As a result, falling supply meets high demand.

The cost of glass is rising

Once the harvest has been harvested and the olive oil pressed, it has to be bottled. However, the price of glass has also risen sharply. Firstly, the raw material costs for sand have risen, as have the energy costs for melting and the transportation costs.

Is Italian olive oil becoming a luxury good?

2023 was not the first year in which the olive oil yield in Italy was low. Climate conditions are confronting Italian olive growers with unprecedented challenges. The entire olive oil sector in Italy needs to explore new cultivation methods and varieties to cope with the changing climatic conditions. There are plans to plant more olive groves, but it can take up to ten years before an olive tree bears fruit for the first time.

As production estimates in Italy remain low for the time being and the global availability of olive oil on the market is also uncertain in the future, prices are expected to rise even further. High inflation and rising logistics and production costs are also contributing to rising prices. However, we at Gustini will continue to do everything we can to offer our customers good value for money.