Shortage of Spanish olive oil driving prices up

• This year's olive oil crop is down by about 35 per cent, or 350,000 tons, after little rain and severe cold spells and snow hurt Spain's olive trees last winter.
• The country is the world's biggest olive oil producer, accounting for a third of global supply.
• The situation in Spain this year has delayed the release of figures.
• "In the next couple of weeks, when the numbers come out, there will be a 10-15 per cent decrease in prices for a short window of about two weeks," explained Jesus Mejias, export manager for one of the major brands Plaza de Espana.
• Prices for Spanish olive oil are already at record highs, at around �3.79 per litre of extra virgin wholesale, up more than 60 per cent since January.
• The high prices come at a time when demand from export markets is booming, boosted by a series of studies showing the health benefits of olive oil.
• During the last 20 years, hundreds of studies have investigated the health benefits of the Mediterranean diet, of which olive oil is a major component.
• But recent months have seen some breakthroughs in pinpointing why olive oil has a protective action against heart disease and cancer, making an even stronger case for consuming more olive oil.
• It is hard to tell whether health-conscious consumers will continue to pay more for these benefits.
• Last year, sales in the UK alone were worth �107 million, compared with just �1 million 20 years ago, according to AC Nielsen.
• But a shortage of olive oil in Spain will force prices from other regions upwards too.
• Buyers are going to other countries but because production is so low elsewhere, they are running out of supply," added Mejias, implying price rises across the board.
• "People are now going to understand that this is a commodity," he said.