Olive oil to become “more expensive” due to poor harvest

This year’s poor olive harvest is driving up the price of olive oil, says agriculture minister Capoulas Santos.

“Unfortunately, 2016 was very bad for agriculture in terms of climate which affected the production of many sectors, namely olive oil,” he told Lusa news agency.

As Capoulas Santos explained: “When production drops, prices tend to increase” as producers try to compensate for their losses.

Pingo Doce retail group Jerónimo Martins agrees, saying price increases are inevitable, though German chain Lidl is “not expecting” changes to their pricing, Lusa reveals.

Capoulas Santos added that for now the slump in olive production will not affect exports as most companies have enough stocks to maintain price agreements.

Data from Portugal’s statistics institute (INE) shows that the production of olives for olive oil dropped 30% last year to 500,000 tons of olives.

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