The price of olive oil in Canada has recently shown a temporary stabilization with a slight decline.
According to Statistics Canada, the average price of olive oil per Liter in July was $16.68, and in August it slightly decreased to $16.40. Last year, the price of olive oil soared due to the severe drought in the Mediterranean region. According to Statistics Canada, the price of olive oil per Liter in 2023 is expected to increase by 27.23%, or about $3.51.
In an interview with a media outlet, Michael von Masso, a professor of food economics at the University of Guelph, said, “Last year, the severe drought in the Mediterranean region had a big impact on the olive oil harvest, but this year, the harvest is returning to normal due to the rain.”
Professor Bon Masso explained, “Major producing countries such as Spain and Greece are recording harvests close to normal compared to last year, and as a result, prices are falling as supply is restored.” Spain is the world’s largest producer of olive oil, and last year’s production decline of more than 60% had a major impact on the global olive oil market. However, prices are expected to stabilize as production increases this year.
Professor Bon Masso predicted that “the price of olive oil could fall by another $3 by the fall of this year,” but added that “it will be difficult to return to last year’s price level.” According to Statistics Canada, the price of one Liter of olive oil in August 2023 was $12.89. Professor Bon Masso warned that “climate change will increase the price volatility of olive oil in the future,” and that “price may surge again depending on the climate situation in the Mediterranean region.” He explained that “food prices will fluctuate greatly in the future rather than remaining at a consistent level as in the past.”
Meanwhile, prices of soybean oil and canola oil are also expected to fall due to increased harvests, so stabilization of prices for edible oils in Canada is expected.