Spain records high olive oil prices
February 2006 and increased by 37.2 per cent during the last 12
months, as a result of the shortfall in the country's production.
El Pais reports that the Spanish ministry of industry, tourism and commerce confirmed olive oil as the packaged food product to register the highest year-on-year price increase in the country, followed by frozen prawns.
The ministry announced earlier that the 2005 olive oil crop is down by about 35 per cent, or 350,000 tons, after little rain and severe cold spells and snow hurt Spain's olive trees last winter.
Spain is the world's biggest olive oil producer, accounting for a third of global supply.
There was a slight decrease in prices for a short window of about two weeks in December before prices stabilised at a higher level.
The high prices come at a time when demand from export markets is booming, boosted by a series of studies showing the health benefits of olive oil.
During the last 20 years, hundreds of studies have investigated the health benefits of the Mediterranean diet, of which olive oil is a major component. But recent months have seen some breakthroughs in pinpointing why olive oil has a protective action against heart disease and cancer, making an even stronger case for consuming more olive oil.
It is hard to tell whether health-conscious consumers will continue to pay more for these benefits. Last year, sales in the UK alone were worth 107 million, compared with just 1 million 20 years ago, according to AC Nielsen.
In terms of fresh food, the items to have registered the highest year-on-year price increase are anchovies, followed by salmon and hake.
