Expect olive oil price rises, says NZ importer

Expect olive oil price rises, says NZ importer

Auckland-based European food importing business William Aitken & Co says consumers need to brace themselves in 2015 for price increases forMediterranean olive oil following a difficult growing season and subsequent shortage of product globally.

However managing director of William Aitken & Co, Graham Aitken, says like crude oil the international price of olive oil will always fluctuate and people should not be put off.

“The global price of olive oil changes monthly and the reality is us importers are now experiencing the highest buying price in over three years. This is due to volumes being affected by factors such as drought in Spain and olive groves in Italy being destroyed after being struck by a bacteria strain. Subsequently here in New Zealand grocery shoppers can expect to see price increases.

“We’re telling people prices rises now seem inevitable but not to lose the faith. Major medical and scientific studies continue to show the significant health benefits from the likes of extra virgin olive oil, and so people should think seriously before they even consider trading down.”

Among many products William Aitken & Co is the exclusive importer of leading olive oil brand Lupi. The four-generation family business has been marketing olive oil in New Zealand for over 70 years, and in recent years demand for imported Mediterranean olive oil has been boosted by a global health renaissance.

Mr Aitken says while there are some fine Kiwi olive oil producers, they simply struggle to compete with importers on price and product consistency, with the likes of Lupi painstakingly blended to ensure consistent flavour profile year on year.

“People tend to instantly associate Italy with olive oil but the reality is that olive oil has become a global commodity. Unfortunately Spain has just endured its worst olive crop in nearly a decade after harsh winter frosts and a summer drought which have both led to a serious fall in supply. At the same time a blight has hit the crop in Puglia - Italy's main olive-growing area - with heartbroken growers left with no option but to burn their olive trees to the ground. Local or regional issues like these directly affect global supply and pricing.

“The international supply issues around olive oil will take a bit to rectify, and so consumers will need to be a little patient.

“If people ever feel the price is getting a little steep, our advice is to use the high-end extra virgin olive oil for dressings and flavour and use pure or extra light olive oil for high temperature cooking. But don’t ever stop considering the myriad of health benefits when you’re making your purchase and cooking decisions,” says Mr Aitken.

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