Adverse weather conditions in Spain, particularly in its key olive oil-producing province, Jaén, have led to consecutive years of poor harvests, impacting the global olive oil market. Two years of drought have significantly reduced olive oil production, leading to soaring prices by more than 70% this year alone. This scarcity in supply from Spain, the world’s largest olive oil producer, is creating a ripple effect, impacting global prices due to the fundamental law of supply and demand. Rising costs of production alongside limited rainfall have significantly contributed to the decrease in olive yield. Climate change exacerbates these challenges, breaking traditional assumptions about alternating harvest quality. While some countries have witnessed a price hike in olive oil, it’s not as drastic as in Spain, where swift turnaround times influence prices. The impact is seen in reduced exports, a decline in domestic sales due to cheaper alternatives, and a consequential shift from the renowned Mediterranean diet, raising concerns among health experts about the health benefits of olive oil consumption amid the ongoing crisis in the olive oil industry.
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