Why is extra virgin olive oil so expensive now?

Canadians who enjoy drizzling extra virgin olive oil on their salads or dipping bread in it may have noticed a recent pinch in their wallets. The price of this popular cooking staple has skyrocketed in recent months, with the average cost of a one-litre bottle now hovering around $16, compared to $14 just two months ago [1]. This represents a significant increase of 15.2% in a short period, and experts warn that prices may continue to climb.

Sylvain Charlebois, a professor of food distribution at Dalhousie University, analyzed data that revealed this sharp rise in olive oil prices. He believes the trend is unlikely to reverse anytime soon. “Prices right now are skyrocketing,” Charlebois stated, emphasizing the magnitude of the price hikes [1].

The culprit behind this surge in olive oil costs appears to be a global supply shortage caused by poor harvests in recent years. According to olive oil expert Phil Buchanan, olive oil production has dipped by a staggering 36% globally over the past five years [1]. Buchanan attributes this decline to a series of unfortunate weather events, including record-breaking hot temperatures that have led to excessively dry soil.

“Prior to 13 years ago, there was a bit more predictability,” Buchanan explained. “You could almost pinpoint what day you were going to start to harvest. You could almost look at your calendar and be like, ‘Hey, this is what we’re doing now.’ But um, it’s literally the most unpredictable I’ve ever seen,” he said, highlighting the dramatic shift in olive oil production patterns [1].

Despite the high prices, experts don’t anticipate an olive oil shortage. Professor Charlebois suggests that countries with olive oil production might prioritize supplying their domestic markets first if supply remains low [1]. Buchanan, however, offers a more optimistic perspective. He believes the high price of mass-produced olive oil could incentivize consumers to explore premium options, which might only be a few dollars more expensive.

This price increase poses a challenge for Canadian consumers, particularly those who rely on olive oil for its culinary and health benefits. While some may opt for alternative cooking oils, others may choose to adjust their consumption habits or seek out deals on olive oil. Regardless of the individual approach, one thing is clear: Canadians will likely be paying more for their olive oil in the foreseeable future.