‘Huge knock-on effect’: Why olive oil prices are higher than ever

The price of olive oil at major supermarkets has skyrocketed in recent months, as Aussie households struggle to make ends meet.

The price of olive oil at major supermarkets has skyrocketed in recent months, spurred by poor growing conditions, high demand and uneven supply at a time when Australian households are struggling to make ends meet.

Recent analysis by Compare The Market found the cost of a 750ml bottle from one popular brand had doubled from $12 to $24 since 2021, while the price of another had risen by 44.3 per cent in the last year, increasing from $18 to $26.

A four-litre tin of the pantry staple, meanwhile, will set shoppers back as much as $65 – putting it out of reach for many families as they try to minimise their grocery bill.

In a video shared to the grocery giant’s TikTok account this week, Woolworths’ employee Alexandra explained why prices are “heaps higher than normal”.

“There’s a couple of reasons for that. Our growing conditions here in Australia have been less than best and apparently it’s been exactly the same in Europe, so it’s had a huge knock-on effect,” she said.

Shoppers have taken to social media to malign the high olive oil prices. Picture: TikTok

Shoppers have taken to social media to malign the high olive oil prices. Picture: TikTok

In Spain and Italy, olive farmers have been crippled by ongoing heatwaves and drought – while at home, insects have decimated some groves in Victoria, while cold and wet weather has affected growers in South Australia and NSW.

Australian Olive Association chief executive Michael Southan told the ABC last month it had been a “disappointing” season for many local growers.

“SA has had a bad year, the Hunter Valley had a bad year, but other parts of New South Wales and Victoria have done reasonably well. It seems to be just one of those mixed years,” he said.

International and local olive farmers have been impacted by suboptimal growing conditions. Picture: Jorge Guerrero/AFP

Asked if Australia was heading for an olive oil shortage, Mr Southan warned the pantry staple “will certainly be tight in the next 12 months” – but reasonable yields from some of the country’s largest producers would keep it on supermarket shelves.

Speaking to The Nightly in July, the Olive Centre CEO, Amanda Bailey, echoed his message, assuring shoppers there was still enough olive oil locally to meet demand both in Australia and overseas.

“We’re not at a crisis point because there is olive oil in the tanks for the various markets,” Ms Bailey said.

‘We want people to still be able to buy and enjoy all the great extra virgin olive oil that we produce here in Australia, and enjoy the flavour and health benefits of it.’

As for prices, Mr Southan told SBS they “probably won’t go too much higher” – with an increase in crops leading to a drop in cost.

“I think we’ve seen a bit of a plateau now, with prices. We have heard that Spain has had some rain, which has helped their crops. So hopefully their production will increase a bit,” he said.

“And our new season oil has come onto the market here in Australia as well.

“What we hope is that prices won’t get too much higher because we want people to still be able to buy and enjoy all the great extra virgin olive oil that we produce here in Australia, and enjoy the flavour and health benefits of it.

“So we anticipate at this stage that prices shouldn’t change too much more and, with time, hopefully supply will increase.”