After a year in the price valley, olive oil is celebrating a comeback in 2025 - unfortunately not on consumers' wish lists.
In December, many were still hoping for stable or even falling prices for the liquid gold. But then the lack of rain in Andalusia and Extremadura threw a spanner in the works for farmers and us consumers. The harvest remained meagre, prices rose - and we wondered whether it was time to get the good old butter out of the fridge again.
The price trend: from high to low and back again
At the beginning of 2024, a liter of olive oil cost around nine euros - a shock for anyone who prefers to make their own tapenade. However, the market calmed down and shortly before the turn of the year, the price slipped to under 3.50 euros. Some even dreamed of three euros per liter. But 2025 shows us that dreams often remain just that: Dreams.
Now the Virgen variety costs 3.98 euros again, Extra Virgen is 4.25 euros. Even cheaper? Not a chance. And this is just the beginning, if market experts are to be believed.
Mallorca: lots of sun, little oil
While Andalusia and Extremadura complain about smaller and drier olives, Mallorca is struggling with an even bigger problem: olives? Which olives? The island reported a drop in the harvest of more than 78 percent for 2024. So if you still have a bottle of Mallorcan oil in your cupboard, you should guard it carefully - it may soon become more valuable than champagne.
What makes prices even more expensive?
The weather god alone is not enough to blame. Since the beginning of the year, the reduced VAT rate has been raised from two to four percent. A small figure that has a double impact in the supermarket. Of course, the fact that production costs for farmers continue to rise doesn't help either.
A look into the future: a dry spell for olive trees
Farmers are worried about the next harvest. The trees are weakened, susceptible to disease and bear less fruit. This means that it will still be difficult to fill the shelves with affordable oil in 2025.
Consumer tips: Clever shopping
Even though prices are climbing, nobody has to do without olive oil - at least not if you plan smartly:
- Check regional brands: Smaller producers on Mallorca are often a good alternative to the big brands from Andalusia.
- Pay attention to actions: Supermarkets occasionally offer discounts - but beware of overly tempting offers.
- Less is more: A few drops of good oil make more of a difference than a whole gush.
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