The Confederation of Portuguese Farmers (CAP) argued today that the price of olive oil should remain the same or even rise until supply is restored, warning of the possibility of adulterated products in informal channels.
The price of olive oil rose by 69% in January in Portugal, the highest year-on-year increase for the product, which on average in the European Union (EU) rose by 50%, according to data released on Tuesday by Eurostat.
“Until supply is restored to the market, i.e. until production is regularized, it is natural that prices will not fall and may even rise,” said an official CAP source in response to Lusa.
The estimates for the next olive oil campaign will be known from May onwards, which CAP says are fundamental for assessing the future behavior of this market.
The confederation also warned that consumers should not be fooled by prices “significantly below current market values” in informal channels, bearing in mind that they could be buying adulterated products.
The rise in the price of olive oil was due to the increase in production costs, energy and fuel, the impact of the drought and the consequent drop in production, he said.
According to CAP, the fact that producer countries such as Spain and Italy have switched to sourcing their supplies from Portugal has also contributed to a reduction in supply and a rise in prices.
As for the fact that the rise in Portugal is higher than in other member states, the confederation chaired by Álvaro Mendonça e Moura noted that it can be explained by “different speeds of price adjustment in different markets and product rotation among consumers”.
In addition to this, he said, the “high quality of Portuguese olive oils has led to greater demand from other markets, which naturally increases prices”.
According to data from the European Statistical Office, in the EU the price of olive oil skyrocketed in the second half of 2023, with an inflationary peak of 51% in November compared to the same month in 2022.
In December 2023, the year-on-year increase in the price of olive oil slowed slightly to 47% and accelerated again in January.
In January, the price of olive oil increased in all member states.
In addition to Portugal (69%), Greece (67%), Spain (63%) and Estonia (52.2%) also recorded olive oil inflation rates above 50% in January.
