Extra virgin olive oil (EVOO) continues to increase in price. As a consequence of the droughts, the growth of the production costs, and the fiscal pressure, for what there is no better moment to denominate the oil as true liquid gold. In Spain alone, an average of around 1.6 million tons has been produced in recent years, although in the last two campaigns these yields have decreased. Thus, it has established itself as the leading country in world production. From Asoliva, they affirm that it is impossible for Spain to lose this position, since Italy, with an average historical production of 300,000 tons, is the next most important producing country.
In 2022 the original price of a kilo of extra virgin olive oil – different from one liter – was around 5 euros, a year later, close to 8 euros are paid, which could cause the price to reach a historical record. “The price rises in all countries and imports fall, except the US, which has maintained its purchases, although not the Spanish ones,” declares Rafael Pico, director of the Association of Olive Oil Exporters.
However, this price increase does not start from the same figure in all countries. In Ireland, oddly enough, consumers pay less than in Spain to buy a 1L bottle of extra virgin olive oil. Most countries pay a very similar price. For example, in the international supermarket Carrefour a one-liter bottle of extra virgin olive oil of Spanish origin and private label, in Spain it has a value of 6.79 euros, in France 7.95 euros, in Italy 6.59 euros and in Belgium of 9.49 euros. While in Ireland the cost of a bottle of oil of these characteristics is below 5 euros, €4.56 on average, practically half the price in Belgium.
What is the cheapest extra virgin olive oil?
The highest white-label EVOO price in Spain is found in El Corte Inglés where you pay 7 euros per liter, below it can be found in other establishments. Día supermarkets sell the product at 6.80 euros per liter and Mercadona at 6.45 euros. In Ireland you can’t find these prices anywhere. Tesco, the Irish chain with the largest market share, sells this product at €4.65, the same as Aldi, while the SuperValu supermarket is where we find this luxury at €4.39 a liter bottle.
It is difficult for Spanish buyers to understand this price behavior, especially at the moment, since the consumption of extra virgin olive oil has fallen in Spain by 14.67%, according to data from the National Association of Packaging and Refining Industrialists. It is from Edible Oils (Anierac). Also add that this fall has occurred especially in the food and hospitality industry. Although these decreases today are not so strong. They highlight that the main drop in demand occurred in the first months of price rises.
The ironic reality of this situation is that AEVO is more expensive for the Spanish than for the Irish, despite the fact that costs will be saved in transport and distribution of imports. However, in Spain and in the rest of the countries mentioned above, the oil industries work with short deadlines, while in Ireland the operators sign contracts to import quantities that cover needs throughout the campaign. Thus, they achieve lower fixed purchase prices. However, it also has influenza that its use is not widespread, despite the growth it has experienced in recent years. They use many substitute products such as butter, rapeseed oil, vegetable fats…, since in our country consumers experience week after week the increases that are taking place.
