Explained: How Spain’s killer heatwave has caused a shortage of olive oil

The next time you eat a salad or a pasta or crunchy crostini, you might not get too much olive oil with that! That’s because fierce heatwaves and a lack of rain has threatened to reduce olive oil production from Spain — the world’s top exporter. Spain’s agriculture minister Luis Planas told Bloomberg News, “If there is no temperature relief or rains in the coming weeks, this year’s olive harvest could be notably lower than previous ones. The olives sector is concerned about oil production.” He added that less olive oil coming out Spain, which represents nearly half of global production, and continued disruption to the supply of sunflower oil from Ukraine will likely keep the prices of vegetable oils high. Data has already revealed that the price of refined olive oil in Jaen, in Spain’s southern Andalusia region rose by 8.3 per cent in June, compared to the same month last year. We examine the reason for the fall in production and its consequences. Largest producer of olive oil Data released by the Observatory of Economic Complexity (OEC) shows that Spain is the biggest producer and exporter of olive oil across the world. Figures show that the European Union is the largest producer of olive oil at global level, accounting for 69 per cent of the world production, of which Spain is the biggest producer. In 2020, Spain earned a massive $167 million dollars from its olive oil exports. That year, Spain accounted for about 43 per cent of olive oil exports in the world. Italy accounted for a little over 20 per cent of all olive oil exports, which was less than half of what Spain exported that year. Heatwave burns off olive oil This summer, Europe has experienced weather like never before with extreme heat and droughts. And that follows a winter with unusually low rainfall in places like Spain. A study published in July by Nature Geoscience has stated that parts of Portugal and Spain are the driest they have been in a thousand years. Olive plants, which grown in stretches across the Andalusian region, are acclimatised to hot and dry climates — however, only to an extent. This year’s heat is proving too much for some of the crop. “We are used to a lack of water, but not to this point,” Felipe Elvira, an olive farmer in Jaen, Andalusia, lamented to news agency AFP. “The region used to get 800 litres of rainfall per square metre, but is set to get around half that amount this year. Every year it’s worse.” Juan Carlos Hervas, an expert with the COAG — the main representative entity of the farming sector in Spain — explained that Olive trees are very resistant to water scarcity. But when droughts become extreme, the trees “activate mechanisms to protect themselves. They don’t die but no longer produce anything,” he told AFP. The heatwave in Spain has been a ‘killer’ this year. On 2 August, the Spanish authorities stated that a total of 2,176 people had died owing to heat-related causes. Where’s the oil? As the dry weather causes damage to the crop, it is bound to affect the production output, which, in turn, will cause a shortage of olive oil. Kyle Holland, an analyst at market research group Mintec, told The Guardian its market sources are suggesting that there could be year-on-year reductions of 25 to 30 per cent for Spanish olive oil production. “As Spain accounts for the lion’s share of global olive oil production, these reductions would see a significant tightening in global availability,” he added. With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.