Monday, May 08, 2023

Forget gold, invest in olive oil

Olive oil is a staple cooking ingredient for many around the world. The fall in production and the escalating prices, along with pricier and pricier global food commodities, are having an adverse affect on many millions.

Consumers will have seen the results in their local food outlets and supermarkets.

Perhaps a social system based upon production for use not profit would be more able to alleviate the effects upon many.

Time to revert to cooking breakfast bacon and eggs in lard?

‘Olive oil prices have surged to record levels due to a prolonged drought in Spain, the world’s largest producer and exporter of the product.

Prices have surged more than 60% since June.  Consumers will have to brace themselves for further increases. The severe drought that Spain has been experiencing since last summer is now threatening the global olive oil supply, causing prices to spike around the world.

Data from the International Monetary Fund (IMF) showed that global olive oil prices have hit $5,989.8 per metric ton, marking a 26-year high.

The recent October-to-February olive harvest produced a yield 50% less than usual due to exceedingly poor weather conditions. According to Spain’s Ecology Ministry, the country has experienced 36 straight months of below-average rainfall. 

CNBC quoted a Mintec analyst who said, Spain produced an olive oil crop of around 630,000 metric tons, down from the usual 1.4 to 1.5 million metric tons harvest.’

Nb. Twelve months ago price was $4398.57

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