Spain Warns Heatwave Threatens Olive Oil Production
Severe heat waves and lack of rain in Spain threaten to reduce olive oil production from the world's top exporter, the country's agriculture minister has warned.< /p>
"If there is no temperature relief or rain in the coming weeks, this year's olive harvest could be significantly lower than previous ones "Luis Planas told Bloomberg News. “The olive sector is concerned about oil production.”
Spain accounts for almost half of the world's olive oil production. The setback, along with the continued disruption of sunflower oil supplies from Ukraine, meant vegetable oil prices were likely to remain high, Planas said. data-spacefinder-role="richLink" data-spacefinder-type="model.dotcomrendering.pageElements.RichLinkBlockElement" class="dcr-1mfia18"/>
Oil Price Olive refined in Jaén in southern Spain, the Spanish benchmark, rose 8.3% in June from the previous crop year to €327 (£274) per 100kg, according to the International Olive Council. In Bari, southern Italy, extra virgin olive oil costs an average of €419.7 per 100kg.
Study Group Analyst Kyle Holland market manager Mintec, said his market sources suggest that there could be year-on-year reductions of 25-30% for Spanish olive oil production.
"There is also great concern in the market regarding the quality of the upcoming crop and how much of the crop will produce extra virgin/virgin grades and how much will be classified as lampante [unfit for human consumption ],” he said.
“As Spain accounts for the lion’s share of global olive oil production, these cuts would result in a tightening significant in global availability. Going forward, market participants expect prices to continue to rise unless the weather improves and gives some respite to c cultures. drought in 70 years. Market sources suggest that Italian olive oil production could be 20-30% lower than last year. The drought is also expected to lead to lower harvests of apricots, peaches and pears.
Hot weather in large parts of Europe is also threatening to disrupt production grain, at a time when global food prices are near record highs following Russia's invasion of Ukraine, which sent wheat and other grain prices skyrocketing.
Planas estimates Spain's overall cereal production, including corn, wheat and barley, could decline by 13% this year to 17.5 million tonnes due to high temperatures and scarce rainfall.
Ukraine and Russia reached a UN-backed deal in late July to allow the export of millions of tonnes of grain from blocked Black Sea ports, which could help bring prices down and avert the threat of a food crisis mon catastrophic dial.
The objective of the agreement is to secure the passage of cereals and essential products such as sunflower oil from three Ukrainian ports, including Odessa. Officials hope that if Russia sticks to the deal, pre-war export levels from Ukraine's three ports - 5 million tons a month - could be reached within weeks.
Planas said Spain had received only a handful of Ukrainian grain shipments using alternate routes since the invasion began six months ago.
Monday,
Severe heat waves and lack of rain in Spain threaten to reduce olive oil production from the world's top exporter, the country's agriculture minister has warned.< /p>
"If there is no temperature relief or rain in the coming weeks, this year's olive harvest could be significantly lower than previous ones "Luis Planas told Bloomberg News. “The olive sector is concerned about oil production.”
Spain accounts for almost half of the world's olive oil production. The setback, along with the continued disruption of sunflower oil supplies from Ukraine, meant vegetable oil prices were likely to remain high, Planas said. data-spacefinder-role="richLink" data-spacefinder-type="model.dotcomrendering.pageElements.RichLinkBlockElement" class="dcr-1mfia18"/>
Oil Price Olive refined in Jaén in southern Spain, the Spanish benchmark, rose 8.3% in June from the previous crop year to €327 (£274) per 100kg, according to the International Olive Council. In Bari, southern Italy, extra virgin olive oil costs an average of €419.7 per 100kg.
Study Group Analyst Kyle Holland market manager Mintec, said his market sources suggest that there could be year-on-year reductions of 25-30% for Spanish olive oil production.
"There is also great concern in the market regarding the quality of the upcoming crop and how much of the crop will produce extra virgin/virgin grades and how much will be classified as lampante [unfit for human consumption ],” he said.
“As Spain accounts for the lion’s share of global olive oil production, these cuts would result in a tightening significant in global availability. Going forward, market participants expect prices to continue to rise unless the weather improves and gives some respite to c cultures. drought in 70 years. Market sources suggest that Italian olive oil production could be 20-30% lower than last year. The drought is also expected to lead to lower harvests of apricots, peaches and pears.
Hot weather in large parts of Europe is also threatening to disrupt production grain, at a time when global food prices are near record highs following Russia's invasion of Ukraine, which sent wheat and other grain prices skyrocketing.
Planas estimates Spain's overall cereal production, including corn, wheat and barley, could decline by 13% this year to 17.5 million tonnes due to high temperatures and scarce rainfall.
Ukraine and Russia reached a UN-backed deal in late July to allow the export of millions of tonnes of grain from blocked Black Sea ports, which could help bring prices down and avert the threat of a food crisis mon catastrophic dial.
The objective of the agreement is to secure the passage of cereals and essential products such as sunflower oil from three Ukrainian ports, including Odessa. Officials hope that if Russia sticks to the deal, pre-war export levels from Ukraine's three ports - 5 million tons a month - could be reached within weeks.
Planas said Spain had received only a handful of Ukrainian grain shipments using alternate routes since the invasion began six months ago.
Monday,
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