Brazilians' food preparation has become more expensive in recent months. O price ofolive oil soared in supermarkets across Brazil, reaching the highest level in seven years. According to October data from the Broad Consumer Price Index (IPCA), the inflation product accumulated in 12 months reached 26.96%.
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However, even with a significant increase, olive oil has not reached the peak of its price, as they tend to increase even more. Among the factors causing such an increase are climate issues, which directly affect olive tree plantations. Furthermore, the war between Ukraine and Russia and the exchange rate issue also influence the prices charged.
According to experts, there is no prospect of a solution in the short term, given the seriousness of the issues that result in rising prices. Data released by the International Olive Oil Council shows that Brazil is the third largest importer of olive oil and extra virgin olive oil in the world. Thus, 8% of all global production is destined for Brazil, second only to
European Union (17%) and the United States (35%).Global Warming and its effects
One of the factors that has most influenced prices is global warming and the extreme heat waves that are occurring around the world. Due to climate change, European producers are facing difficulties in maintaining olive tree production, which is highly impacted by high temperatures and drought.
The professor at Fundação Getúlio Vargas (FGV), Felippe Serigati, explained to Estadão that El Niño is stronger than usual this year. Therefore, the harvest was reduced due to the impact on the olive trees, which bore less fruit for the production of oil. Furthermore, Serigati also recalls that the current situation is similar to the national market in 2015, when oil registered huge increases.
“The year 2015 has similar characteristics to 2023. The country also had exchange rate problems, in addition to a severe drought caused precisely by the incidence of El Niño”, explained Serigati. In 2015, the year ended with accumulated inflation of 22.75% in twelve months, with an increase that continued in the first months of 2016. In July 2016, the increase reached 31.24%.
Finally, the FGV professor says that this scenario could repeat itself. “It wouldn’t be a surprise if in the coming months we record further increases in the price of olive oil,” she said.
*With information from Estadão