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NewsOils and Fats Sector Coverage

El Niño Threatens Spain's Olive Oil Output, Driving Global Prices Upward

Fats and oils processing
August 16, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Recent reports from CGTN's special series 'Inside El Niño' highlight how Spain, the world's largest producer of olive oil, is grappling with intensifying pressures due to a potentially record-strength Super El Niño. This climatic phenomenon is exacerbating existing challenges for an industry that supplies more than half of the global olive oil output.

Hundreds of millions of olive trees span a landscape the size of Belgium, sustaining entire communities. Producers are now confronting declining harvests, soaring input costs, and escalating risks of drought, extreme heat, and disrupted yields directly linked to this climate pattern. Production in key regions has already seen sharp declines, while broader European farm losses mount as the continent's climate warms at twice the global average rate.

Experts warn that this phenomenon could trigger significant worldwide increases in food prices, underscoring the vulnerability of this crucial cultural and economic staple. It emphasizes the urgent necessity for enhanced water management strategies and greater resilience within the sector, as the Super El Niño is projected to persist from mid-2026 into early next year.

Source: Modern Ghana