Drought pushes olive oil prices to record high

♦ Extra virgin olive oil prices have hit record levels as droughts in the Mediterranean have decimated production.

The cost of a litre bottle has risen to £5.16, up by 6 per cent over the past six months from £4.86 in December.

This compares to £4.41 in April 2009, according to Kantar Worldpanel data.

Meanwhile the proportion of olive oil bottles on promotion in supermarkets has fallen from 60 per cent two years ago to 46 per cent today. The price rises come despite negative food inflation over the period.

Big Mediterranean producers in Greece, Italy and Tunisia have experienced poor olive crops this year due to droughts.

World olive production is forecast to fall 14 per cent this year with the amount being produced in Italy expected to halve, according to the International Olive Council.

Will Sohler, analyst at Kantar Worldpanel, said: “As the sun comes out, consumers may feel that it’s time to switch to lighter meals and salads.

“But those looking to add a Mediterranean-style dressing to their dinner may be shocked to find that the temperature isn’t the only thing on the up – the price of olive oil is also rising.

“Extra-virgin olive oil prices hit record highs and with inflation set to continue we don’t expect to see prices of olive oil falling anytime soon.”