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Heatwave threatens Olive oil industry in Europe

by admineconai July 18, 2023
written by admineconai July 18, 2023
614

Latest reports suggest that the olive oil industry in Europe is currently “in crisis” as the heatwave in southern Europe is threatening to inflict the second bad harvest in a row and gaps on shelves this autumn.

The harvest was forecast to be only 28% up on last year- the worst in almost a decade- after a spring heatwave affected flowering in Spain, which produces about half of the global olive crop.

Recall that the International Olive Oil Council predicted that the country would produce 850,000 tonnes, compared with 1.3m tonnes in a typical year and just 660,000 last year. That forecast was issued before the current period of high temperatures.

The industry fears that production could end up being even worse as a second heatwave in a week brings temperatures of up to 43C this week to some southern parts of Spain, prompting trees to drop unripe fruits in order to preserve moisture.

“In Spain we already know it is going to be another bad year, but no one has got to grips with the what’s currently happening. The record temperatures are not going to help the situation,” said Walter Zanre, the chief executive of the UK arm of Filippo Berio, the world’s largest olive oil producer.

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Speaking further, he said “I can’t share how much anxiety this is causing us. Last year, Spain came into crop with a bit of carry-over [from the year before], which negated the shortfall somewhat. This year the barrels are dry. Even if Spain produces the predicted 850,000 tonnes, the price situation is worse.”

Zanre said that the probable shortages meant prices were likely to rise further amid similarly poor harvests in Italy and Portugal. Wholesale prices have doubled since the beginning of 2022. In the UK, the retail price of olive oil was up 47% year on year to an average £6.16 for 500ml in May, according to the latest figures from the Office for National Statistics.

Given that the autumn harvest is unlikely to produce new oil until November and that last year’s supplies are expected to run out by September, at present rates of consumption, it is possible that supermarkets could see shortages in the autumn.

Tomato producers in Italy are also said to be expressing concerns about the impact of the heatwave, after flooding wiped out more than 15% of the crop planted this year. If the extreme temperatures in the country last longer than a few days, they could damage the remaining crops, which are almost ready for harvest.

Diego Pariotti, who is the commercial director for exports at Conserve Italia, which produces the Cirio brand of tinned tomatoes and passata, said the group was estimating that production would be down by just 10%, with this year’s second harvest in August more likely to be affected by this week’s heatwave.

Story was adapted from the Guardian.

EuropeHeatwaveIndustryOlive oil
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