Severe draught in Spain might threaten olive oil harvest, Oil World reports. In some regions of the country the olive yield might drop 40% compared to 2013. That, in its turn, is likely to drive up the prices for olive oil. Andalusia, the key olive producing region, suffered the most as the dry weather broke when the olive trees needed moisture for the fruit to ripen correctly.
According to Lamine Lahouasnia, the head of Euromonitor International, such a draught might affect deeply the olive market. "If the drought does end up adversely affecting Spanish yields, it is very likely that we'll see rising consumer prices in 2014."
In 2012, rough weather triggered a 80% loss of olive crop in Spain pushing up the olive price by 30%. By the end of 2012, Spain faced a price hike of 13%, while the olive oil price in the United States inched up 8%.
Spain is the largest olive producer in the world accounting for 50% of the global output. Italy, Greece and Turkey which are considered to be the runner-ups are unlikely to gather enough crops to offset the weak supplies from Spain.
