Olive oil price hike

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The price of olive oil has surged due to a combination of factors, including droughts in major producing countries, climate change, and increased demand. Spain, the world's largest olive oil producer, has experienced a nearly two-year drought, which has significantly impacted its olive harvests. This has led to a decrease in global production, with the total output expected to shrink to 2.5 million metric tons in the current crop year, down from 3.4 million a year earlier1. As a result, benchmark prices in Spain, Greece, and Italy for extra virgin oil reached 9 euros ($4.35 per pound) in September, more than tripling from their level in 20191. In addition to the drought, climate change has also played a role in the price hike. Warmer winters, major flooding, and more intense forest fires have affected olive-growing regions, further reducing the availability of olives for oil production1. This has led to a surge in criminal activity related to olive oil, including warehouse break-ins, dilution of premium oil with inferior products, and theft of heavily laden branches and entire trees from unguarded groves1. The rising prices have translated to higher costs for consumers. In Greece, for example, a 1-liter bottle of extra virgin oil jumped from $8 to $9 last year to as much as $15 this year1. The situation is expected to continue, with no immediate relief in sight for the olive oil market.
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