A combination of the temporary suspension of tariffs negotiated by the United States and European Union last month, challenging climatic conditions, COVID-19 pandemic and global olive oil consumption outpacing production in the current crop year have all contributed to the increasing prices.
“It has been a strange international harvest, where none of the forecasts have been fulfilled for climatic reasons and industrial performance,” Vilar said.
Andalusia’s olive oil production in 2020 is expected to be up to 300,000 tons lower than previously predicted, due to the effects of a hot, dry autumn followed by a record-breaking cold winter.
According to figures published by Andalusia’s regional government, olive oil output in the 2020/21 crop year ranged between 1.05 and 1.1 million tons, significantly below its previous estimate of 1.348 million tons.
In a statement, the Andalusian agriculture ministry highlighted issues such as low rainfall, high temperatures in the autumn and damage caused by Atlantic storms, including Filomena, for the reduction in output.