Price Variances in Olive Oil

Why Are There So Many Price Variances in Olive Oil?

Olive oil is a beloved staple in kitchens worldwide, cherished for its rich flavour and numerous health benefits. However, if you’ve noticed that prices can vary significantly, you’re not alone. Here’s a closer look at why this happens and what it means for you as a consumer.

Climate Change and Global Market Impact:

Major producing countries like Spain has been heavily affected by droughts, and poor yields are partly due to intensive monoculture and consequent soil depletion. Combined with bug infestations in Italy and Australia, all contribute to drastically reduced global olive oil supplies. This scarcity leads to higher prices as local producers adjust to international market trends.

Local Harvest Challenges:

South Africa has faced inconsistent olive harvests in recent years. A poor harvest in 2023 followed by a slightly better one in 2024 has resulted in fluctuating supply, which in turn affects prices. Interestingly, olive yields are higher in alternate years. In the Northern Hemisphere, their 2023/2024 harvest was an “off” year, while the South African 2024 harvest (about 80% complete at date) has been good for most producers.

Shift to Local Products:

Historically, two-thirds of the olive oil available to South African consumers was imported. However, from August 2023, the price of Mediterranean oil exceeded that of local oil for the first time. This shift has resulted in local brands now dominating supermarket shelves. Wilson’s Foods has been supporting local farmers for decades, aiding in the stability and growth of local olive oil production.

Production Costs:

Creating high-quality olive oil is a labor-intensive process that requires significant investment. From the meticulous cultivation of olive trees to the precise timing of harvests and careful pressing methods, every step is crucial. Wilson’s Foods ensures all olive oil packed goes through rigorous testing to guarantee it is of the highest quality. These costs are reflected in the price of premium oils.

Theft and Fraud:

Olive oil is now the most stolen product in European supermarkets, with criminal gangs targeting it due to its high value. Additionally, olive oil is at high risk of fraud, with lower-grade oils often being mixed with extra-virgin olive oil to increase profits. These risks contribute to price variances.

By understanding these factors, you can better appreciate the quality and effort that goes into producing every bottle of olive oil. Recognising the influences on olive oil pricing helps you make more informed choices that suit both your culinary needs and your budget.