Olive oil prices set to drop if conditions permit

Agricultural organisations are hopeful that this year’s olive oil production will be better than last year’s, potentially leading to a drop in prices for consumers. However, the full impact of heatwaves, drought and olive-eating insects on the crops won’t be clear until the olive-picking season begins in October.

President of Panagrotikos agricultural organisation, Kyriakos Kailas, told the Cyprus News Agency (CNA) that this year’s outlook seems more promising than last year’s, though the ongoing water cuts are a significant concern. “So far, we are satisfied,” he said, “but our biggest problem is drought.”

Kailas criticised the lack of timely measures, such as desalination, and mentioned that requests had been made for additional irrigation water.

Regarding olive oil prices, Kailas suggested that consumers might see lower costs this year, though similar challenges are affecting all olive-producing countries in Europe. Prices, he noted, are largely influenced by major producers like Spain, Crete in Greece, Portugal and Italy.

Thomas Thoma from the Union of Cypriot Farmers said “we cannot speak in definite terms” about this year’s production, due to the prolonged heatwave and drought.

“We will have a clear picture of the volume of olive oil in September,” he added.

Thoma also mentioned that high prices had led consumers to seek alternatives, such as ready-made salad dressings. He estimated that producers would likely sell olive oil for €6 to €7 per kilo this year, down from €8 to €9 last year.

General secretary of the Pancyprian Farmers Union, Christos Papapetrou, expressed cautious optimism, noting that August and September are crucial for the health of olive trees. In particular, he highlighted the threat of the olive fruit fly, Dacus, in September, which could devastate the crop.

General secretary of the New Agricultural Movement, Takis Christodoulou, was less optimistic. He pointed out that low rainfall in January and February deprived olive trees of the water needed for a good crop.

Christodoulou hoped that prices would at least remain stable rather than increase, noting that only 30 per cent of the price paid by consumers goes to the producers, with the rest going to merchants and middlemen.

General secretary of Euroagrotikos, Lambros Achilleos, said that although production would be better than last year, it was still half of what is gathered in a good year.

He saw neither the cost borne by farmers nor wholesale or retail prices dropping.

Achilleos added that these high prices have also impacted other sectors, such as catering.