Olive oil production down, prices due to rise
Bad weather and an insect infestation have resulted in a bad year for olive growers in the Mediterranean. The production of olive oil could be decreased by 17 percent this year, by one estimate, which is also being projected to result in a worldwide shortage.
By Natalie Pompilio, For The Inquirer
Posted: January 30, 2015
As Vetri chef Alicia Walter prepared for a recent seven-week trip to study olive oil production in the Mediterranean, she was warned that it wouldn't be pretty. The industry had a rough year, blamed on too much rain in some areas and not enough in others. An olive-eating fruit fly had ravaged crops in Italy and left a dent in Greek olive orchards, as well.
Still, she didn't realize how bleak the situation was until she walked into the groves and talked with the devastated families who relied on olive oil for their livelihood.
"A lot of olives were allowed to turn black and fall on the ground. They were so damaged it wasn't worth harvesting them," she said. "Every year, for generations, they would go to the trees and pick the olives. This year, they watched the crops die and there was nothing they could do about it and no one they could turn to for help because everyone was suffering."
Vetri chef Alicia Walter demonstrating olive oil tasting
Those who consider olive oil an essential component in cooking should be prepared to pay more. Prices are expected to increase on oils of all qualities, especially those from Italy.
The world's olive oil producers will produce about 17 percent less product this year, said Curtis Cord, editor of Olive Oil Times. Based on average worldwide consumption, that means the new batch comes up about 400,000 tons short, resulting in the worst production in 15 years, he said.
"The drought in Spain, the weather and the fruit flies in Italy, it's the perfect storm," said Sharon Huss, of the Tubby Olive, a Newtown-based shop with stores in Reading Terminal Market and Doylestown. "There will be a shortage worldwide."
American producers are relatively new to the olive oil game, but there are some good ones out there, Cord said. Still, the California growers, too, have struggled this year because of drought conditions there. And the industry is very young here.
"Domestic olive oil accounts for only 3 percent of our olive oil needs in the U.S. and a tiny fraction of the world supply," Cord said.
Harvesting olives in the Mediterranean region usually begins in October. Spain, the world's biggest producer, which usually accounts for about half of the world's olive oil, had a record-breaking crop in 2013, meaning producers expected to see a drop off as the trees "reset," said Curt Cord, publisher of the Olive Oil Times. It ended up being off by 500,000 tons, which was much worse than expected.
In Italy, the second largest producer of olive oil, the climate hurt, the olive-eating flies did even more damage, and a bacterial outbreak in southern Italy further damaged crops, he said. One Italian daily newspaper referred to 2014 as the "Black Year of Italian Olive Oil."
(Current update: As the article suggests, prices rose sharply late 2014 and early 2015, then returned when the following year’s crop provided a normal supply…Mr. B)
Still, it's not as if the store shelves will be empty, said Cord, one of the industry's go-to resources who began his independent publication in 2010 after years of having a personal blog about olive oil.
"The way olive oil is stored by European producers and strategically released throughout the year to distribution channels throughout the world would make it hard, I think, for the average consumer to notice any shortage except for a widespread price increase resulting from the reduced supply," he said.
The price of Italian oils may rise by as much as half, Cord said. The increase in the price of oils from other areas should be less noticeable.
Although Spanish crops are expected to rebound next year, the situation is more bleak in Italy because of the devastation wrought both by the fruit fly and the substances used to destroy them, said Laurissa Cardenas, co-owner of Cardenas Oil & Vinegar Taproom in the South Ninth Street market.
"They're actually cutting down trees that are 100 years old. The older the trees, the larger the yield and the more complex the fruit produced," she said. "Not only are they losing olives now but they're losing their orchards in the long haul."
Cardenas has noticed costs creeping upward and said she is considering whether to carry some of the more expensive varieties. Huss said she's noticed about a 10 percent wholesale price increase from some small-batch producers. Both shop owners said they weren't sure whether they'd have to raise retail prices or by how much.
Huss wondered whether some California growers and others around the world would seek to benefit from the problems in the Mediterranean.
"There are countries that are going to see this as an opportunity, but that's not very nice," she said. "Hopefully, that won't happen."
Though Cord predicts: "Look for the prices of domestic olive oils to follow imports higher."
One suggestion Cardenas might make to those unwilling to pay more: Expand your palate.
"Try something from some places that are less known but really do product a great olive oil," she said. "For example, the oil from Tunisia might be a little more affordable . . . but some people just want Spanish or Italian oils."
When Walter was overseas, she noted how some producers were prioritizing product distribution based on the relationships they had with certain customers. For her home kitchen, she's willing to spend the extra money to support the many people who depend on the oil for their livelihood.
"It's good to support these producers the same way you would support your farmers, your ranchers, your fishermen," she said. "I was right there in the middle of this and I saw how much work goes into producing this oil. Like any agricultural product, when the crop suffers, the people suffer."
Olive Oil Tips from the Pros
To ensure the olive oils you choose are in their prime, follow these guidelines:
Seek olive oil with the most recent "crush date." The product has an 18- to 24-month shelf life from that point. Although it won't be rancid when that shelf life passes, it also won't be at its peak of perfection.
If health is a priority, read labels carefully and take note of a product's levels of polythenols and oleic acid. Products that are labeled as olive oil but contain other compounds do not have the same health benefits. The higher the levels, the healthier the oil.
If you specifically want Italian oils, read carefully. A loophole in the country's labeling laws allows producers to label their products by where they are bottled, not where they are grown. So a company in Tuscany that imports oil from another country can sell it as Tuscan oil. Look for bottles labeled "produced and bottled by."
Know your olive oil types and base purchases on its use. Extra virgin olive oil, the first press, is additive-free and high-quality, but it loses its health benefits when exposed to heat and light. That's why some cooks recommend using another, less expensive form of oil for frying. You can judge a book by its cover, in this case. Or, more precisely, olive oil by its bottle. Clear glass bottles allow heat to disintegrate the oil. Good oils are packaged in darkened glass or plastic containers or in tin. Store olive oil in a shaded area.
Move beyond the Mediterranean. For example, Australia and South Africa are currently producing interesting oils.
Unwilling to spend the extra money? Try butter. Or make the oil you have last longer by using smaller amounts.