Olive oil costs anticipated to drop by half after reaching file excessive

Olive oil costs are about to dip.

The biggest producer of olive oil plans to slash costs in half now that the weather-fueled disaster that has induced the “liquid gold” to skyrocket in current months seems to be over.

Harvests in southern Europe are slowly recovering from a protracted interval of maximum climate and drought, in accordance with Deoleo, the maker of family olive oil manufacturers corresponding to Bertolli and Carbonell.

“The relief of costs at origin is predicted to start between November, December and January, offered that climate and harvest circumstances stay steady within the coming weeks,” Miguel Ángel Guzmán, chief gross sales officer at Deoleo, instructed CNBC.

“Indications are that if all the pieces develops usually, particularly if rains proceed to favor manufacturing, we might see a downward development in costs all through 2025.”

Olive oil costs reached a file excessive of $12.39 per bottle this yr — a jaw-dropping price Deoleo plans to chop in half.

The Spanish firm expects costs to fall from 10 euros to round 5 euros per liter within the coming month.

“This worth can be cheap in a context of elevated manufacturing, which might ease market tensions and facilitate a gradual normalization of costs after a interval marked by volatility,” Guzmán stated.

The excellent news follows years of olive oil shortages throughout the globe, described by Guzmán as “one of the crucial tough moments” in trade historical past.

Olive oil-producing nations suffering from drought and excessive climate, together with Spain, Greece, Portugal and Tunisia, are anticipated to see stronger harvests this yr, in accordance with the Worldwide Olive Oil Council.

The trade just isn’t utterly out of the woods but, nonetheless.

“Though there have been steps in the direction of enchancment, it will not be fully correct to say that the disaster is over,” stated Guzmán.

“We’re nonetheless going via a part of rigidity in olive oil costs, particularly within the increased high quality oils, corresponding to Further Virgin.”