Under Glaze

Price of olive oil set to soar amid stockpiling in Greece

0 Comments | Herald, The; Glasgow (UK), Jul 17, 2010

THE price of olive oil could soar because Greek producers are stockpiling their product, importers have warned.

Filippo Berio, the UK’s biggest olive oil brand, said prices were already 20% higher than they were a year ago due to factors such as growing demand worldwide.

Now Greek producers, worried about the state of the country’s economy, are reluctant to sell their oil, which could make the situation worse.

Walter Zanre, managing director of Filippo Berio, told the trade magazine The Grocer: “Greek growers consider stocks of olive oil in tanks to be a safer bet than cash in a Greek bank.

“Greece is a source of high-quality extra-virgin olive oil and this is putting additional pressure on prices. At some point the oil will have to be sold, but in the short term it could cause a spike in prices.”

Greece is the world’s third-largest producer of olive oil, behind Spain and Italy.

There are concerns that Spanish producers will adopt a similar strategy as a result of the downgrading of Spain’s credit rating and increasing uncertainty over its public deficit and economy.

A spokeswoman for R H Amar, the company which distributes Bertolli olive oil, said: “The economic climate in Spain is unstable and if the growers decide they can afford to use their oil as cash in the bank, prices are likely to spike as a result.”

The high price of olive oil is in sharp contrast with other edible oils.

The price of vegetable and seed oils has fallen significantly this year, following substantial hikes last year.