Deoleo, the biggest olive oil company in the world, says that the business needs a “profound transformation” right now when things are at their worst. The olive oil business has been hit hard by problems like climate change, high prices, high-interest rates, and rising costs.
People have noticed that the price of olives has gone up because of two years of very high temperatures in Spain. This has reduced the amount of olive harvests that can be sold. Spain produces more than forty percent of the world’s olive oil, so the price situation could have an impact on millions of buyers.
Deoleo’s chief sales officer, Miguel Angel Guzman, said, “We are living through one of the worst times in the history of our industry.” Due to high-interest rates, strong inflation, and bad predictions for the olive oil yield, prices have gone up a lot.
People who shop have noticed that the price of extra virgin olive oil went up from about 7.8 euros to 9.2 euros. Given that more olives are being grown because of the rain in the spring, the price has begun to drop a bit.
As soon as the harvest yields return to normal, Guzman says they knew this price increase would level off. However, he does mention that they won’t know how much they will gather until it’s time to harvest.
People think things are back to normal, but the oil business wants changes in innovation, sustainability, and quality “with a focus on the consumer.”
When it comes to climate change, Guzman spoke out about how important it is for the business to change so that problems like this don’t happen again. Concerning better protecting the olive trees, Guzman said, “The sector has to take the reins and all the actors that are part of it must change if we want to reduce price volatility and increase its predictability.”
