Deoleo, Spain’s leading olive oil producer, has highlighted the urgent need for a significant overhaul within the industry amid what it describes as one of the most challenging periods in its history.
A confluence of factors, including climate change, surging prices, high interest rates, and robust inflation, has severely impacted the entire olive oil value chain in recent months, particularly in Spain, which contributes over 40% of the world’s olive oil production.
Miguel Angel Guzman, Deoleo’s chief sales officer, emphasized the severity of the situation, stating, “We are facing one of the most difficult moments in the sector’s history.”
He attributed the considerable price hikes to strong inflation, increased interest rates, and unfavorable olive harvest forecasts due to the ongoing drought cycle.
While olive oil prices have recently decreased, attributed in part to improved production estimates and beneficial rainfall, Deoleo remains cautious about the future outlook.
Guzman stressed the need for significant changes within the sector, emphasizing Deoleo’s commitment to sustainability, innovation, and quality, with a focus on consumer satisfaction.
The challenges faced by the olive oil industry are exacerbated by the climate crisis, with olive trees being particularly vulnerable to extreme weather conditions.
Severe droughts and high temperatures have significantly impacted Spanish harvests, leading to supply shortages and price volatility.
Guzman emphasized the importance of proactive measures to address these challenges, stating, “The sector has to take the reins,” and advocating for transformative actions to reduce price volatility and increase predictability.
He underscored the necessity for collective efforts within the industry to safeguard the future of olive oil production.
