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Olive oil is one of the best-known food condiments.
It goes well with salads and can also be used for stir-fries and pans.
Sam Beaton is the co-CEO of Cobram Estate Olives.
He says prices have skyrocketed due to high demand and erratic supply.
Currently, prices for basic pantry olive oil are around $71 online for a four-liter can or $27.50 for a 750ml bottle.
“What we’ve seen in Australia is that demand still remains very strong and I think that’s about high-quality olive oil, which consumers know is a really healthy product and has some amazing health benefits.”
While many people might associate the Middle East with growing olives for olive oil, Spain is the world’s largest producer.
Michael Southern, chief executive of the Australian Olive Association, says Spain has experienced difficult market conditions.
“It’s a supply and demand issue. So in Australia we produce enough olive oil to meet half of the domestic demand. The other half comes from imported olive oil and most of the imported olive oil comes from Spain And Spain has been experiencing a drought for the last couple of years, which has really reduced the supply. And so as a result, there’s just less olive oil coming into Australia, and the supply is tight and the demand remained high, so prices increased while supply is tight, we will see higher prices.”
Data from the International Olive Council shows that global olive oil production fell from 3.42 million tonnes in the 2021-2022 season to 2.57 million tonnes in 2022-2023.
But Robert Armstrong, the owner of ALTO Olives, says local producers also experienced a poor harvest season.
“It’s not just me. Most growers across the country have been severely impacted by climate change, particularly this past year. And that manifested itself through a hard freeze. Which, in our case, manifested itself between late October and early November last year, which is when all the trees bloom.”
Mr Southern expressed his optimism that olive oil prices had reached their peak.
“Prices probably won’t go up much. I think we’ve seen a bit of a plateau in prices now. We’ve heard that Spain has had some rain, which has helped their crops. So hopefully their production will go up a bit.” ‘”. And our new season oil has also arrived on the market here in Australia. What we hope is that the prices don’t get too high because we want people to still be able to buy and enjoy all the amazing extra virgin olive oil. that we produce here in Australia and enjoy the flavor and health benefits. So we expect that at this stage prices shouldn’t change too much and, over time, hopefully supply will increase.”
Beaton says increased harvests could lead to a drop in olive oil prices.
However, he is quick to point out that any significant changes to the cost of the product will take time to take effect.
“Yes, look, you would expect that and I think that can come in the form of more promotion or deeper promotion. But it takes a long time to flow, by the time the olives are harvested, stored, bottled and sent to In terms of European oil, it is very likely that it will be at least six to 12 months from now.”
So, what can be done in the meantime?
Extra virgin olive oil is rich in good fats – monounsaturated fatty acids – and is rich in antioxidant compounds such as vitamin E.
It is an essential part of the Mediterranean diet, which some studies suggest can reduce symptoms of anxiety and stress and improve cardiovascular health.
It can be difficult to replace for those who use it regularly.
But Teresa Kryger, a nutritionist from New South Wales, suggests some alternatives for those who can no longer afford to keep it on their shopping list.
“If you’re looking for alternative fats, I would lean towards things like avocados, nuts and seeds. They’ll give you the same kind of essential fatty acids as olive oil. If you’re looking at cooking, I’m all about butter. A lot of people think that butter isn’t healthy, but actually a little butter is.”