Why Extra Virgin Olive Oil in Australia Has Skyrocketed in Price This Year

If you’ve been to the grocery store recently, you might have noticed that your favourite bottle of extra virgin olive oil (EVOO) is significantly more expensive than it used to be. This isn’t just a localised phenomenon; it’s part of a larger trend sweeping across global olive oil markets. So, what’s driving these soaring prices?

A Year of Extreme Weather Events

While Australia has a thriving growing olive oil industry, it isn’t immune to global trends. Australian olive growers have faced their own set of challenges, including unseasonably warm winters and irregular rainfall. These conditions have affected both the quality and quantity of the olive harvest. With limited supply and increased demand, prices have naturally surged... We're talking drastically reduced yields of 30-70% Less Olive Oil for certain growers.

One of the biggest factors contributing to the price hike is Climate Change. In 2023 and 2024, major olive oil-producing regions such as Spain, Italy, and Greece experienced extreme weather patterns. Severe droughts, heatwaves, and unpredictable rainfall disrupted olive harvests, leading to drastically reduced yields. Spain, which accounts for nearly half of the world’s olive oil production, reported one of its worst harvests in decades. This global shortfall has created a ripple effect, impacting the cost of imports and local production in Australia.

Rising Production Costs

It’s not just the olives themselves that are pricier. Rising costs in transportation, labor, and packaging have also played a role in driving up prices. The ongoing energy crisis and inflationary pressures have made everything from bottles to machinery maintenance more expensive, further adding to the cost of producing and distributing olive oil.

Global Demand Outpacing Supply

As more people adopt Mediterranean diets and look for high-quality cooking oils, the demand for extra virgin olive oil continues to grow. This surge in demand, combined with a significant drop in supply, has created the perfect storm for skyrocketing prices.

What Can You Do?

If the rising cost of EVOO has left you rethinking your shopping list, consider the following tips:

• Buy Local: Supporting Australian olive oil producers not only reduces your carbon footprint but also ensures you get a fresher product. Buying direct from local helps keep money in our economy.

• Use Sparingly: A little goes a long way with good quality olive oil. Remember you can use it primarily as a finishing touch rather than only using it as a cooking base to maximise its flavour... Although we're guilty for that one.

• Spread The Word: Love our Olio? Or another Aussie grower? Spread the word! It doesn't matter if it's us or someone else—when Australia supports Australia, we all thrive.

The recent price surge is undeniably frustrating, but it’s also a stark reminder of how deeply interconnected our food systems are with global environmental and economic factors. With rising temperatures predicted, it’s not just olive oil prices that are set to increase... Many staples could follow suit. For small, self-funded businesses, making a significant impact while staying eco-friendly is both challenging and costly. The real pressure, however, must be placed on the giant corporations that hold the power to drive meaningful, large-scale change.