Drought Triggers Olive Oil And In Catalonia Borders On A World Maximum

Olive oil prices are skyrocketing this summer. In Catalonia, the extra virgin category exceeded 8 euros per liter in mid-July, according to data from the Ministry of Agriculture. That figure is very close for the first time to the prices of Italian olive oil (8.79 euros per liter), the most expensive in the world. It is not an isolated phenomenon. As the graph shows, the rise in prices affects several producing countries in the Mediterranean: Spain – the world’s largest oil producer – Italy, Greece and Tunisia.

“We are facing historical records because of inflation and, above all, climate change. The drought and extreme temperatures are causing losses in the last harvests and olive production is falling year after year”, warns Jordi Pasqual, national manager of the oil sector of Unió de Pagesos.

According to the calculations of the farmers’ union, the Catalan harvest already fell by 50% last year, falling to a production of 15,000 tons of oil. This year, the outlook is worse. Unió de Pagesos predicts that the harvest will again fall by an average of 50% throughout the territory. So he foresees an oil production of about 7,000 tons, when the usual in Catalonia is to reach 30,000.

In some territories, such as Les Garrigues or El Priorat, farmers warn that they are going to lose almost the entire harvest, which begins at the end of October. “Even if it rains for the next few weeks, the damage has already been done because the flowering of many trees has stopped prematurely,” laments Enric Dalmau, president of the DOP Les Garrigues.

Farmers lament the lack of public aid and the difficulties in collecting insurance

The price rise affects all categories of oil: extra virgin, virgin and lampante. In fact, Spain has emerged in recent months as the country where lampante oil is more expensive (the worst quality). According to data from the Ministry of Agriculture, these stood at 6.73 euros per liter, compared to 6.15 euros in Tunisia and 5.81 euros in Italy. Pasqual points out that the increase is motivated by a question of supply and demand: as the highest quality olive oil is more expensive, the market demands cheaper oil and the price rises.

Farmers warn of the seriousness of the situation. The future of the sector –formed by 27,500 farms in Catalonia– is in danger, since it depends directly on the evolution of the climate.

Faced with this situation, which will hardly improve, the sector is demanding aid from the Government and the Generalitat. So far, without much success. Joan Gòdia, director of Indústries Alimentàries of the Generalitat, explains that next September there will be a meeting with those affected. Gòdia recalls that the Generalitat is currently processing subsidies for the effects of last year’s drought. They will be granted to different cooperatives of olive oil producers for a value of about 200,000 euros.

Regarding the collection of insurance, Unió de Pagesos regrets the difficulties in obtaining them. “The conditions established by Agroseguro are very strict. For example, you must lose at least 50% of the harvest for the technicians to come to analyze the land”, laments Pasqual.

The Catalan harvest was reduced by 50% in 2022 and this year it is expected to drop another 50% at least

Beyond insurance and subsidies, which serve to alleviate the current situation, Gòdia points out that the sector must seek solutions to guarantee its future. The planting of trees that are better adapted to the weather seems the best option given the difficulties of increasing the amounts of irrigation.