The Confederation of Farmers of Portugal (CAP) argued today, February 28, that the price of olive oil should remain the same or even rise until supply is replenished, warning of the possibility of adulterated products in informal channels.
The price of olive oil rose 69% in January in Portugal, registering the biggest year-on-year increase for the product, which on the European Union (EU) average increased by 50%, according to data released on Tuesday by Eurostat.
«As long as there is no replenishment of supply in the market, that is, until production is regularized, it is natural that prices will not fall and may even rise», stated an official CAP source, in response to Lusa.
From May onwards, estimates regarding the next olive oil campaign will be known, which CAP says are essential to assess the future behavior of this market.
The confederation also warned that consumers should not be deceived by prices “significantly below current market values” in informal channels, taking into account that they may be purchasing adulterated products.
The increase in the price of olive oil contributed to the increase in production, energy and fuel costs, the impact of the drought and the consequent drop in production, he said.
According to CAP, the fact that producing countries, such as Spain or Italy, began to source from Portugal also contributed to a reduction in supply and an increase in prices.
As for the fact that the increase seen in Portugal is higher than what happened in other Member States, the confederation chaired by Álvaro Mendonça e Moura noted that it can be justified with «different speeds of price adjustment in different markets and product rotation with consumers”.
To this, as he mentioned, it is added that the «high quality of Portuguese olive oils has generated greater demand for other markets, which naturally increases prices».
According to data from the European statistical service, in the EU, the price of olive oil soared in the second half of 2023, with an inflationary peak of 51% in November, compared to the same month in 2022.
In December 2023, the year-on-year increase in the price of olive oil slowed slightly to 47% and accelerated again in January.
In turn, in January, the price of olive oil increased in all Member States.
In addition to Portugal (69%), Greece (67%), Spain (63%) and Estonia (52,2%) also recorded olive oil inflation rates above 50% in January.
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