Smaller harvest could give rise to olive oil shortages
Shortages of olive oil in the market are expected in the next months, according to cooperative executives, due to lower production and producers’ unwillingness to sell, expecting prices above 8-9 euros per kilo.
The concern is that a bigger increase in prices will lead consumers to switch to other products.
As the olive harvest comes to an end many producers are not invoicing in order to avoid additional taxes due to last year’s large production which, combined with high prices, brought an increase in income.
Also, as the Spanish harvest looks set to remain at last year’s low levels and will not exceed 650,000-700,000 tons, rumors of further price increases are rife.
Commenting on this year’s low production, Michalis Kabitakis, of the union of Iraklio in Crete, said that “last year we as a union had 550 tons of olive oil and this year I estimate we will produce 70 tons.”
