The price of olive oil climbed by 35% in August, surpassing 13 euros per liter in the super markets, with the estimates being ominous.
The vice-president of the Greek Association of Agricultural Cooperatives, Michalis Kampitakis, in statements to Naftemporiki TV, said that the oil sold in supermarkets was bought 3-4 months ago by the producer at around 4.80-5 euros per liter. Therefore, the price in the super markets should be at 8-9 euros. “Higher prices are prohibited. It is going to become a product of luxury,” he warned and spoke of the phenomena of profiteering.
As he pointed out, “increases have been recorded since mid-July, when we saw the forecasts for low production in Greece and other countries.” He underlined, however, that “crazy increases in the super markets are by no means justified”, adding that inspections must be made in order to bring prices back to the right levels. He also expressed the view that the regulatory authorities should target the large chains.
Forecasts for this year’s production
As for the forecasts for this year’s production, they are ominous in Greece, Spain and Italy. “The producer will not have oil to sell to cover at least the cost of the crop,” he pointed out. He also said that “consumption will drop sharply, it will be very difficult for the consumer to return.”
For example, he said that “in Crete last year we had over 130,000 tons. We initially estimated that production will drop to 70,000-80,000 tons this year, but now estimates are even lower close to 30,000-35,000. This is 25% of last year’s production.” He attributed this drop mainly to the two months of rain at the beginning of the summer.
The evolution of prices
Regarding the evolution of prices, he estimated that “with the crazy race, if the authorities don’t intervene, the price might even reach 20 euros.”
“The forecasts are very bad for this year’s production. We will see this around the end of the year, when we will have a picture of the production of each country,” he noted.