Olive oil price surge

Well, in case you missed it, there has been a surge in the price of olive oil, with some expectations the price could go even higher:

The price of olive oil on Australian shelves is already rising as production in Italy and Spain slumps this harvest.

The International Olive Council is forecasting production could drop by 27 per cent this year.

Spain, which normally accounts for about half of the world's supplies, is expecting a 55 per cent drop in olive oil production.

And in Italy, which usually accounts for 15 per cent of global production, production is expected to drop by 35 per cent.

On Australian supermarket shelves, where most of the olive oil and extra virgin olive oil is imported, prices are already rising.And the president of the Australian Olive Oil Association, David Valmorbida, says the largest spike in prices is yet to come.

"We might see in February, for example, when the fresh oil arrives from Europe that all the prices of olive oil in the Australian market will be significantly more expensive."

Global olive oil production expected to slump, prices already rising

Unfortunately, it would seem that AAP is not going to benefit from the spike in the price of olive oil, due to their supply agreement with Boundary Bend.

On the other hand, given that agriculture is fairly energy-intensive industry, the recent crash in the oil price should shave a little off their annual expenditure bill for next year.