Price of olive oil expected to rise again as European crops feel the heat | Food & drink industry | The Guardianhttps://www.theguardian.com/business/2026/aug/04/price-olive-oil-expected-rise-again-european-crops-heat-drought-wildfiresThe European Union has cut harvest predictions on a whole menu of crops with expectations for sunflowers, essential for cooking oils, down by 7%. Meanwhile, grain maize is down 6% on the previous forecast and expectations for potatoes and soya beans have been trimmed by 3%.
However, some countries have been less badly hit than others with Romania, for example, seeing more rainfall and Italy’s wheat crop proving resilient.
The ASAJA agricultural trade body said direct damage from fire had hit orchards, vineyards, agricultural land and greenhouses – affecting citrus fruits, avocados, almonds, vineyards, vegetables and olive groves – while water stress and extreme temperatures had hit production of tomatoes and maize.
“While local production losses may reduce export volumes for some products,” a spokesperson said, the main concern was “higher production costs” rather than restrictions on international trade.
direct damage from fire had hit orchards, vineyards, agricultural land and greenhouses – affecting citrus fruits, avocados, almonds, vineyards, vegetables and olive groves – while water stress and extreme temperatures had hit production of tomatoes and maize.
“While local production losses may reduce export volumes for some products,” a spokesperson said, the main concern was “higher production costs” rather than restrictions on international trade.
Olive oil producers said they expected another surge in prices this year as growers struggled with a combination of extreme heat, drought and, in some cases, fires.