Olive Oil Prices in Spain Rise Despite Decrease in Origin Price

Olive oil prices in Spanish supermarkets have increased by 4.1% since January 2024, despite a €1.21 decrease in the origin price compared to January. The Mintec Benchmark Prices (MBP) for extra virgin olive oil have been moving downward, with the MBP for Andalusia settling at €7.80/kg as of April 19th, 2024. This decline follows several weeks of decreases after the MBP reached a record high of €9.20/kg in January 2024, partly due to an increase in production estimates for Spain's 2023/24 season.

However, market players have expressed concerns about consumption trends, noting a decrease influenced by the relatively high retail prices of olive oil compared to other cooking oils. The olive oil market outlook is described as being on a precarious balance and vulnerable to potential supply shortages due to diminishing oil reserves. Varying production estimates and external factors such as export bans and economic conditions within the EU are also impacting the market.

Why this matters: The olive oil industry is a significant contributor to Spain's economy, and price fluctuations can have far-reaching effects on producers, retailers, and consumers. The current market instability highlights the need for careful monitoring and strategic planning to ensure the long-term sustainability of the sector.

Despite the recent decrease in origin prices, the retail price of olive oil in Spanish supermarkets remains high, leading to a decline in consumption. As one market analyst noted, "The olive oil market is currently in a delicate balance, with supply and demand factors pulling in different directions. It will be critical to keep a close eye on production estimates, export trends, and consumer behavior in the coming months."

Key Takeaways

• Olive oil prices in Spanish supermarkets up 4.1% since Jan 2024, despite 1.21€ decrease in origin price.
• Mintec Benchmark Prices for extra virgin olive oil in Andalusia down to 7.80€/kg as of April 2024.
• Concerns about decreasing consumption due to high retail prices compared to other cooking oils.
• Olive oil market outlook described as precarious, vulnerable to supply shortages and external factors.
• Olive oil industry is a significant contributor to Spain's economy, requiring careful monitoring and planning.