Spanish olive oil prices have increased by 21% since November last year, driven by lower than expected production and strong export demand. Spain is the largest global producer of olive oil.
Production forecast for 2016/17 had to be revised after adverse weather in December in Andalusia, Spain’s main producing region, caused olive oil output to fall and reduced stocks available for export in January.
Furthermore, export demand for Spanish olive oil has been strong, up 24% y-o-y in Q4 2016, due to lower global production in 2016/17, projected down 9% y-o-y at 2.8m tonnes. Italy accounted for more than third of all Spanish exports as production of olive oil in Italy is set to decline, due to poor harvest in the current season.