Middle-class relief as olive oil prices finally fall

Telegraph

21-02-2025

Olive oil prices have started to fall from record highs in a boost for middle-class kitchens.
The average price of best-selling supermarket olive oils has declined steeply over the past six months, data show, in the wake of a bumper harvest of Spanish olives.
The cost of a 500ml bottle of own-label oil in Tesco, Asda, Sainsbury's and Morrisons dropped by an average of 7.8pc to £5.30 over the six months to Feb 17, according to data firm Assosia.
The cost of the same size bottle of Napolina oil, meanwhile, dropped 12.3pc to £6.98 over the same period, while a bottle of Filippo Berio dropped 7.5pc to £9.21.
Olive oil prices soared to an all-time high last year, rising 150pc between 2021 and 2024, amid a collapse in production caused by extreme weather and droughts across much of southern Europe.
Spain produces two fifths of the world's olive oil and is an international benchmark for prices. Both Napolina and Filippo Berio, though Italian brands, use a blend of oils from all over Europe, meaning a drop in the price of Spanish oil can have a significant impact on the costs associated with making them.
Gary Lewis, president of the National Edible Oil Distributors Association, said: 'Two years ago, we had a crop of about 650,000 [tons] in Spain. Last year was about 830,000 and this year looks to be 1.4m to 1.5m – it could be 1.6m tons.'
He added: 'I've never seen Andalusia so green. It's had lots of rain. The trees look in good condition and the olives look in good condition.'
Falling prices will come as a relief. Mr Lewis said some customers had stopped buying olive oil altogether because of price increases, opting for alternatives such as sunflower oil.
The price of a 500ml bottle of Napolina or Filippo Berio in the UK is still higher than it was a year ago, while supermarket own-label bottles are now as expensive as they were 12 months previously.
However, Walter Zanre, the chief executive of Filippo Berio, said he expected to see further price falls in the supermarkets over the coming months.
Jeremy Gibson, at Napolina, added: 'We knew olive oil harvests were projected to be higher than last year, helped by rain and milder temperatures in Spring, which created better growing conditions.
'This ideal climate improved the state of the olive trees, previously decimated by the dry weather and heatwaves experienced across southern Europe last year.
'This was welcomed by growers, and as a result, they were able to shift their focus away from navigating another poor harvest, to preparing the groves for a solid season and a return to normal volumes.
'With improved harvests in key regions driving down wholesale prices, we may see further adjustments in retail pricing, benefiting consumers nationwide.'