Olive oil costs surge over 100%, resulting in cooking oil thefts

Olive oil costs spiked to recent data as extreme droughts in main producing nations crimp provides — and drive up thefts in cooking oil.

International costs for olive oil surged to $8,900 per ton in September, pushed by “extraordinarily dry climate” within the Mediterranean, in accordance with a latest report by the USA Division of Agriculture. Already, the common worth in August was 130% increased in comparison with the 12 months earlier than, and confirmed “no signal of easing,” USDA stated.

Spain, the world’s largest producer and exporter of olive oil, has been battered by an intense drought for months. The nation additionally simply recorded its third hottest summer season, with the common summer season temperature 1.3°C increased than regular, in accordance with state meteorological company AEMET.

In response to information from commodity market intelligence agency Mintec, Spain’s olive oil manufacturing within the latest season has slumped to round 610,000 tonnes — that is a drop of greater than 50% in comparison with the standard 1.3 to 1.5 million tonnes.

“Including to the complexity of the state of affairs are issues about diminished manufacturing in different main European olive oil-producing nations, together with Italy and Greece, the place drought situations prevail,” Mintec’s oilseeds and vegetable oils analyst, Kyle Holland, informed CNBC. 

Greece and Italy are the second and third largest producers of olive oil, in accordance with the Worldwide Olive Council, an intergovernmental group made up of members that make up greater than 98% of olive manufacturing globally.

Costs of olive oil in Spain’s Andalusia soared to €8.45 ($9.02) per kilogram in September, Mintec’s benchmark confirmed. It marks the “highest worth ever recorded for Spanish olive oil” primarily based on the corporate’s information spanning over 20 to 30 years, and represents a year-on-year leap of 111%.

The hovering costs, on what’s generally known as “liquid gold,” have led some to steal it.

About 50,000 liters of additional virgin olive oil in one in every of Spain’s oil mills, Marin Serrano El Lagar, had been stolen within the early hours of Aug. 30, in accordance with native media reviews. That is greater than €420,000, or about $450,000, value of olive oil that the household enterprise misplaced. There have been no arrests up to now.

That is not all.

Shortly earlier than that, thieves made off with 6,000 liters of additional virgin olive oil value €50,000 from Terraverne oil mill, Spanish newspaper El Munco stated. The corporate’s computer systems, tables, followers and chairs had been additionally reportedly looted in the course of the heist. 

The businesses in query didn’t reply to CNBC’s request for remark.

And there isn’t any respite in sight.

Mintec’s Holland cautioned that if shares of olive oil proceed to be depleted by the drought, provides might be exhausted earlier than October, the place the recent harvests often arrive. 

“Additional complicating issues is Turkey’s choice to droop bulk olive oil exports,” stated the analyst. “The suspension has worsened the already restricted volumes in Spain.”

Turkey, which can be a big olive oil producer, has suspended bulk exports till Nov. 1, a transfer ensuing from the worldwide surge in costs.