Olive oil price soars 37% in Brazil in 2023

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Drought in Europe and rising production costs drove the rise, economists say. Product inflation is not going to retreat anytime soon. On market shelves, it has been common to find bottles being sold for R$40 or R$50. Shutterstock The price of olive oil has been frightening Brazilians. On market shelves, it has been common to find bottles being sold for R$40 or R$50. And there is no expectation that product inflation will stop anytime soon. From January until the 14th of this month, the price of olive oil soared 37.76%, according to the December inflation preview, which is measured by the Broad Consumer Price Index-15 (IPCA-15). The data was released this Thursday (28) by the Brazilian Institute of Geography and Statistics (IBGE). The explanation for the strong increase, however, is far from Brazil. This is because the main olive oil producers are in Europe, where a severe drought reduced the harvest and put pressure on supply on the international market. But the War in Ukraine also influenced this account by putting pressure on production costs associated with agricultural production, including olive trees, explains Felippe Serigati, researcher at FGV-Agro. Brazil is impacted by this scenario because it is highly dependent on imports, producing only 1% of national demand. Because of all these factors, the country is having to spend more, even purchasing the smallest amount of olive oil in the last 6 years. Spain even had loads of olives stolen for the production of olive oil Price of olive oil soars in Brazil Olive oil will remain expensive At least for now, olive oil should remain expensive for the consumer, say economists. “El Niño, which has caused these average temperatures above normal, should continue throughout the first quarter. We should only see a reversal between the first and second half of next year”, says Serigati. “But even so, we are talking about a culture that is permanent. The olive tree is not like corn, for example, where, with each harvest, you plant new corn. That is not the situation, that is, that plant, that olive tree that was injured by excess heat, by a water shortage, carries that scar into the next cycle”, he concludes. Do green and black olives grow on the same tree? Does it taste different? See interesting facts Green and black olives: do they grow on the same tree? Does it taste different? See interesting facts about where olive oil comes from

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