Shoppers face hike in olive oil prices across supermarkets
Could home cooks be forced to choose a different alternative?
OLIVE oil could soon see a dramatic price increase, according to a new report.
Production of the healthy Mediterranean mealtime favourite has fallen following crop failures in major growing countries.
A leading supplier has warned that supermarkets could hike up olive oil prices as a way to cope with the decrease in production.
They have also suggested that suppliers may have limited stock for 100 per cent Italian extra virgin olive oil due to a poor olive harvest.
Popular household brand Filippo Berio estimates that Spanish olive oil production will improve this year.
Despite this, global production has been estimated at 2.75 million tonnes, which falls short of the predicted 2.9 million tonne demand.
As production in Italy has also remained low, there are fears that the retail price of olive oil will continue to climb.
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The UK is the world’s tenth biggest olive oil consumer, with British shoppers purchasing around 62,000 tonnes of the product a year.
Managing director of Filippo Berio, Walter Zanre, told “During the last four weeks we have seen Italian extra virgin olive oil prices appreciate by over 10per cent and it is still increasing.
“We fully expect to see a repeat of the 2014-15 situation.”
Supermarkets current own-brand olive oil prices
Sainsbury’s: £3.45 for 1L
Tesco: £3.50 for 1L
ASDA: £3.50 for 1L
Co-op: £4.75 for 1L
Waitrose: £3.45 for 1L
It’s believed that the poor harvest is a result of crops being destroyed by pests, including the olive fly.
Walter Zanre revealed: “In our region, Tuscany, forecasts are for less than 50 per cent of normal crop “
It’s not just Italy that is struggling to produce enough olive oil to keep up with demands.
In Greece, farmers are forecasted to make 220,000 tonnes of oil in 2016-17, compared with 300,000 tonnes the previous year.
This could be bad news for British shoppers, as brands struggle to source good olive oil while the production problems continue.
