Olive oil to get more expensive in NZ thanks to Mediterranean drought

Monday, 15 May 2023

Olive oil is expected to go up in price.

Olive oil is set to get more expensive after a poor season in the Mediterranean led to the highest global prices in 26 years.

Emma Glover, executive officer of Olives NZ, said New Zealand only produced about 10% of the olive oil that was consumed in the country each year.

Companies that imported olive oil from the Mediterranean would see their costs increase, she said.

Heat and drought in the Mediterranean, particularly in Spain, had caused global olive oil prices to reach a 26-year-high.

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Marlborough's only olive press is gearing up for the new season, and inviting growers to produce their own brand of olive oil.

The recent olive harvest from October to February produced 50% less than the usual output, forcing prices up to almost US$6000 (NZ$9677) per metric ton, according to the International Monetary Fund (IMF).

This was the highest since 1997 when it was US$6225.

Sunflower oil had also risen in price due to the war in Ukraine.

The price of Olivani extra-virgin olive oil was $1.28 per 100ml in February 2022 according to a Consumer NZ study. It was now $2 at Countdown.

Harvest extra virgin olive oil was $1 per 100ml last year and was now $1.60.

Glover said the majority of New Zealand producers grew their own olives or had local contract growers.

There were indications of some tough times locally, too.

Olive oil sourced from the Mediterranean will be more expensive.

Harvest season for New Zealand producers had only just started and until all the olives were off the trees and pressed the industry would not know exactly how the season had been, she said.

Olive trees grow in warm and dry climates, and the optimal temperature ranges from 15C to 26C.

Nelson/Marlborough and Kapiti were reporting positive signs, while Canterbury, Central Otago and Wairarapa had varied reports.

Northland, Auckland and Hawke’s Bay, the areas affected by the cyclones and wet summer, would predominately have a lighter harvest.

A spokesperson for Hawke’s Bay-based The Village Press said 2023 had been a “triple whammy” when it comes to olive oil supply.

“We are Hawke’s Bay, and a lot of our best groves are in the Esk Valley - so it is pretty obvious that we have supply issues, and our trusted farmers have even bigger issues than we do.

“As there is no real olive oil lobby group, we are not even sure to go about getting support from the government for this.”

The company’s The Village Press brand relied on New Zealand extra virgin olive oil, and its The Global Village brand sourced olive oil from single farms in Spain and Italy.

Its Spanish suppliers had been hit by climate-driven issues and production had been low, forcing costs up, he said.

“Put this together with the effect of Russia's invasion of Ukraine on sunflower and other oils, and the cooking oils aisle is, unfortunately, not going to be an easy one for the shopper to navigate,” he said.

“We are now 20 years old in providing the best oils to New Zealand and will get through this, but it’s tough.”