Spain is grappling with drought-like conditions and it is adversely impacting olive oil production, bringing down annual supplies to 780,000 tonnes. This is almost half, compared to last year. Spain is the world’s largest producer of olive oil.
The price of olive oil soared in the commodities market as the supply dried up, reaching an all-time high of €5.4 per kilogram. Buyers are saying that they have never seen such high prices for olive oil.
Almost little to no rain in Spain over the last two years has resulted in this historic fall in the supply of olive oil. The rainfall received by Spain in April was 23% short of the average. Crop failure has been reported by farmers across the Mediterranean. Olive oil companies are complaining about the quality of oil produced. This is expected to drive the price further up.
Experts are calling this a classic case in which climate change has impacted the commodities market. There have been calls for production with greater care for biodiversity from concerned corners across Europe.
