Prices for Spanish olive oil are approaching an all-time high as hot weather and disease harm the country’s harvest.
Last week the cost of Spanish extra-virgin olive oil rose 5 percent to $4,272 per metric ton—the highest since April 2006 and “critically low levels,” according to industry analysts Oil World. A bacterial disease xylella fastidiosa and fruit-fly infestations have also contributed to a 50 percent decline in Spanish and Italian olive oil output for the 2014-2015 season, Bloomberg reports. Spain and Italy account for 70% of the world’s olive oil.
“It’s quite a concerning acceleration in the price of olive oil,” Lamine Lahouasnia, the head of packaged-food research at market intelligence firm Euromonitor International, told Bloomberg. “The supply shortages as a result of the drought, and particularly under-production in Spain, have filtered through to the marketplace.”
Olive oil prices around the world have risen an average of around 10 percent in the past year, outpacing the global inflation rate for packaged foods according to Euromonitor.