The global olive oil market has entered unprecedented territory. In 2023, Spain’s severe drought has crippled the world’s largest producer, driving olive oil prices to record highs and reshaping global supply chains. As European consumers face steep costs, Australian producers are experiencing strong demand and record export returns. This article examines the climatic and economic forces behind this crisis.

The European Commission forecasts olive oil prices will remain elevated into 2024 as drought, low stocks, and reduced yields pressure EU producers and consumers.