Easy on the Drizzle: Virgin Olive Oil Price to Double

A bottle of olive oil is expected to increase by as much as 50 per cent this year because of Spain's poor crop season. In 2013/14 the olive harvest in Spain produced 1.8 million tonnes of the green liquid. This year, it's expected to produce a mere 800,000 tonnes. 

"It's supply pressure and the industry is controlled by Spain; the world's biggest olive oil supplier", says James Tyler whose family business Lefktro in England has been importing and exporting olive oil for 20 years. Leftktro supplies many restaurants and shops in bulk, including Harrods and Harvey Nichols.

Trade Price Affected by Big Producers.

"If Spain has a bad crop, the prices increase; which is compounded by a bad crop in Italy. The crop in Sicily is the worst since 1930. Greece meanwhile has had a record crop — but they still only produce half as much as what Spain does".

James Tyler's company predicted the almost doubling of the price of olive oil last July. 

"The feedback we received from the farmers in the field was that there wasn't a huge amount of blossom on the trees. It was also an incredibly hot summer, then during the harvesting season the weather was really bad. So at the moment, farmers aren't willing to sell; they think the prices will increase".

Olive oil's roots reach as far back as 6000 years ago. It was used in all aspects of everyday life in the Mediterranean and Middle East: from cooking, cleansing, perfume-making or simply medicinally.

The green liquid made its journey to the middle class kitchens in Britain in the 1970s where it solidified as an integral, almost essential ingredient in nearly all recipes.

Olive oil came to England thanks to cookery writer Elizabeth David, says olive oil expert, Judy Ridgway from oliveoil.org.uk. "In the 1970s her recipes introduced it to the elite in London while French cuisine was becoming fashionable", says Ridgway.

"Two decades later and with more opportunities for people to travel abroad, meant more people started to take notice of olive oil. Tastes became healthier and the appeal widened."

The rise of Italian cooking, celebrity led food culture, plus an increased knowledge of the health benefit olive oil possesses has meant the once luxury item sold in delis, occupies every supermarket.

Price Could Plateau

"Now every chef on every television cookery show uses it like it's butter ‘just pour in the olive oil'. And that really made a difference to why people in Britain use it so much", says Ridgway.

Everyone's interested in it now, according to Judy Ridgway: "People eat out a lot and it's not just posh restaurants that offer olive oil and dips on the table. Supermarkets sell a wide range, costing on average £3.99 for half a litre up to £8.00. Specialist shops sell premium extra virgin olive oil for in excess of £10 for half a litre.

With the price set to soar in 2015, Judy predicts olive oil consumption will plateau. "But it will hopefully go up again next year when everyone has a bit more money."

The olive oil market, says to James Tyler "is a global market and a highly commoditised product", and according to Olive Oil Times, Turkey is holding back on half of its total exports waiting for the price to increase.

"It's like petrol, you're still going to pay for it" says Raphael Giannandrea, whose runs Italian restaurant Trattoria Raffaele in Sydenham, south London.

"But they'll be millions of Italians complaining, I'm sure. We use extra virgin oil for all our dishes and our supplier is consistent and very good. But there are thousands of suppliers out there so we could switch — but we won't put our prices up".