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The Spanish company Deoleo, a global leader in olive oil production, has announced that the olive oil market has entered a new phase characterized by stability. This declaration signals the end of an unprecedented period of sharp fluctuations that dominated the sector between 2022 and 2024.
In a statement, Mr. Cristóbal Valdés, CEO of Deoleo, explained that the significant improvement in rainfall rates across key olive oil-producing nations, particularly Spain, underpins optimistic forecasts for a robust harvest season. This development, according to Valdés, played a pivotal role in restoring the desired balance between global supply and demand.
Valdés further elaborated in an interview with 'CNBC' that the stability in supply chains directly contributed to providing clearer visibility on price levels, which in turn stimulated a recovery in global olive oil demand. He specifically highlighted the American market, where there has been an increase in the number of households purchasing the product across various income brackets and levels.
It is worth noting that olive oil prices had reached record highs over the past few years, driven by severe drought waves and extreme heat that swept across Southern European regions, before embarking on a noticeable downward trend during the current year.
Source: twaslnews.com