Good news for Greek olive oil producers as Spanish production is reduced this year, a Bloomber report says. Greece will double olive oil production in order to offset the decrease in Spain.
“international olive oil production is expected to drop in 2014-2015 and its price will skyrocket, because of extended drought periods and destruction of olive trees in Spain, but also because of the civil war in Syria,” said an international analyst to Bloomberg.
Experts believe that olive oil production will be reduced by 3,190,000 tons in 2013-2014 and by 2,550,000 tons in 2014-2015. The main cause is the worst drought that ever hit Spain and last year’s record production that exhausted the trees. According to Bloomberg, Spain is the world’s largest olive oil producer and exporter. Spanish olive oil has a wide range of uses, such as in salads, canning, soap making, beauty products and more.
The decrease of production in Spain will result in an increase in demand all over the world, especially within the European Union. The price of olive oil will rise accordingly and remain so for a prolonged period. Bloomberg expects that Greece will increase production of olive oil to offset the drop in Spain. Also, Syria will see a decrease in its production because of war in the area.
It is estimated that Greece will double its production and export of olive oil, as it is expected to produce 300,000 tons next year, as opposed to the 158,000 tons the country produced in 2014.