Why Is That Bottle of Olive Oil Suddenly $40?
Olive oil prices have surged to over $40 a bottle. Learn why a perfect storm of drought, disease, and demand has caused a global shortage and what it means.
By Foodie Pundit Newsroom - Published - Updated - Section: Food Prices
Key points
- The price of olive oil has doubled or tripled due to a severe global supply shortage, not just typical inflation.
- Extreme drought and heat in Spain, the world's largest producer, caused a more than 50% collapse in olive harvests for two consecutive years.
- The supply crisis is compounded by the spread of a plant-killing bacterium, Xylella fastidiosa, in Italy and climate pressures across the Mediterranean.
- Restaurants are forced to choose between absorbing massive cost hikes, increasing menu prices, or reformulating recipes with cheaper oils, risking quality.
- Consumers should consider using high-quality olive oil more sparingly for finishing dishes and using other fats for general cooking to manage costs.
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Sources and methodology
Reported from the public datasets below.
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