Olive oil expert warns consumers to expect elevated olive oil prices

The hot European summer is pushing up the price of one of Australia’s favourite grocery products, and it is expected to stay high for a while.

Olive oil prices are rising on a mix of supply disruptions and they are likely to remain elevated for another 12 months, a leading industry expert has warned. Picture: istock

Olive oil prices are rising on a mix of supply disruptions and they are likely to remain elevated for another 12 months, a leading industry expert has warned.

Olives South Australia president Steve Pantelos said Europe’s summer drought had hit producers in Italy and Spain and low domestic yields for Australia’s east coast growers had reduced supply, pushing up prices for consumers at the checkout.

“The price has significantly increased. Certainly on a wholesale level, it has definitely gone up at least 25 per cent,” Mr Pantelos said.

“If you go back two years, you’d buy a litre of oil on the shelf for $9.50 or $10. Today it is closer to $15.”

Low domestic yields for Australia’s east coast growers has reduced supply Picture: Zoe Phillips

Mr Pantelos said he was fielding calls from Spanish and Italian companies eager to buy Australian oil.

“It doesn’t leave a lot left for Aussie consumers,” he said.

And though it’s a hit to Australians negotiating a cost-of-living crisis, Mr Pantelos said the price jump was good news for growers.

“Growers are certainly happy, the industry is pretty excited about the prices,” he said.

“It is very good news for them, they have been struggling for some years.”

The Mediterranean nations of Spain, Greece, Morocco, Turkey and Italy are the world’s top producers of olive oil, according to the Australian Olive Oil Association, with Australia a comparatively minor player in the global market.

A drought in Spain has affected olive oil production. Picture: Ander Gillenea / AFP

Mr Pantelos said even if conditions improved next year and yields increased, Australian growers would still enjoy elevated prices.

“I can’t see them going down,” he said.

Western Australian grower Barry Sanders is buoyant about his industry’s future and said he had earned 10-15 per cent more on his product compared to last year.

Mr Sanders, who runs the 300-tree Tarralea Grove at Jarrahdale south of Perth, said some WA growers were eager to expand production.

“There are some growers putting in more trees,” he said.

“I’m certain some of them are looking to send more oil to the east.”