Global olive oil prices have skyrocketed to record levels, more than doubling in some places.
In Rio de Janeiro, 500 ml of olive oil from a popular brand was costing R$50.00 last week. In the United States, 2 liters of extra virgin olive oil was priced at Costco wholesale market for US$21.99 this week.
Olive oil is a globally traded commodity, with events in one part of the world reverberating in others. The drought in Spain last year, the world’s largest olive oil producer, devastated recent harvests, and bad weather hit the crops of other major producers like Italy, Greece, and Portugal.
The United States imports almost all the olive oil it consumes, mainly from Spain and Italy. The same goes for Brazil. Although Brazil produces a small amount of olive oil, it is not enough to meet the country’s needs. Most of the olive oil consumed in Brazil is imported from countries like Spain, Portugal, Italy, and Greece, among others.
Unpredictable and unusual weather patterns linked to climate change that have affected olive oil crops in the Mediterranean have also impacted French wines, Florida oranges, and many other crops around the world. The resulting increase in food prices has been a significant factor in the recent rise in inflation, which is squeezing household budgets and tormenting economies worldwide.
Source: The New York Times