Olive oil crisis eases as top producer sees harvest surge

Spanish olive oil production is set to jump by almost half this season, easing a supply squeeze that pushed up prices following two poor harvests.

Output in the world’s top producer is expected to reach about 1.26 million tons, according to forecasts from the Spanish Ministry of Agriculture, Fishing and Food. That’s a 48% increase on 2023, and would return Spain toward the long-term average for the crop.

Two years of bad harvests across the Mediterranean have turned olive oil into “liquid gold,” with prices soaring to record levels. Signs of a better harvest have seen the commodity decline by more than a fifth from highs above $9,880 a ton.

Shoppers will probably only benefit from lower prices later on, as supply contracts are usually negotiated months in advance.

Weather conditions in the coming weeks could also impact on production as harvesting of the crop has only just begun, the Spanish government said.