Olive Oil Prices in Spanish Supermarkets Rise Despite Decrease in Origin Price

Olive oil prices in Spanish supermarkets rise despite falling origin prices, highlighting complex market dynamics and challenges faced by the industry.

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Safak Costu
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Olive Oil Prices in Spanish Supermarkets Rise Despite Decrease in Origin Price

Olive Oil Prices in Spanish Supermarkets 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, driven by an uptick in production estimates for Spain's 2023/24 season.

However, concerns have emerged regarding consumption trends, with a decrease influenced by the comparatively high retail prices of olive oil relative to alternative cooking oils. The olive oil market outlook faces uncertainty due to varying production estimates and external factors such as export bans and economic conditions within the EU. Industry participants are maneuvering through fluctuating prices and supply dynamics during this period of market volatility.

Why this matters: The divergence between rising supermarket prices and falling origin prices for olive oil in Spain highlights the complex dynamics and challenges faced by the industry. The situation has broader implications for olive oil producers, retailers, and consumers, as they confront shifting market conditions and the potential impact on consumption patterns and the overall economy.

The combination of record-high benchmark prices in January, followed by a steady decline in origin prices, has created a challenging environment for the Spanish olive oil market. As industry participants closely monitor production estimates, export regulations, and economic indicators, the industry remains focused on maneuvering through the current period of uncertainty and adapting to the evolving market landscape.

Key Takeaways

  • Olive oil prices in Spanish supermarkets rose 4.1% despite 1.21€ drop in origin price.
  • Mintec Benchmark Prices for extra virgin olive oil in Andalusia fell to 7.80€/kg by April 2024.
  • Concerns over decreasing olive oil consumption due to high retail prices compared to alternatives.
  • Olive oil market faces uncertainty due to production estimates and external factors like export bans.
  • Divergence between rising supermarket and falling origin prices highlights industry challenges.