Spain's Deoleo says market has entered a new phase
Deoleo, the world's largest olive oil producer, reports that the market has stabilized following three years of extreme volatility caused by drought and heat. Improved rainfall has led to better harvests, resulting in more predictable pricing and a recovery in global demand.
Why it matters
The stabilization of olive oil prices is a key indicator of recovery for the global food supply chain after climate-driven disruptions.
Spain's Deoleo , the world's largest olive oil company, says a period of unprecedented volatility has unequivocally given way to more stable market conditions, citing an unlikely catalyst in helping to lift U.S. sales.
"The highly complex market cycle experienced between 2022 and 2024, which had a severe yet temporary impact on the industry, is now definitively behind us," Deoleo CEO Cristóbal Valdés told CNBC via email.
Favorable rainfall trends across major producing nations, including Spain, have paved the way for a solid global yield for the upcoming harvest, Valdés said, consolidating a more robust and balanced global supply.
The update comes as analysts raise concerns about the prospect of global olive oil supplies swinging dramatically from one season to the next, particularly as issues such as climate change , water scarcity and pest and disease pressures persist.
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