Olive oil becomes thorn for Greek food service sector

The large increase in the price of olive oil is expected to bring a chain reaction of price increases in food service/catering as well.

The steep increase in the price of olive oil directly affects food service, taking into account the wide use of this commodity in Greek culinary practices. After all, one of the most basic ingredients in restaurants, steakhouses and fast food is olive oil.

Olive oil: Workers from all over Greece in Crete to harvest the olives

The entrepreneurs of the organized food service sector appear concerned as the inflation in food continues but also the price of olive oil continues to rise.

One crisis follows another and the entrepreneurs of the sector measure their strength. First there was the pandemic, then the war in Ukraine, and then the energy crisis and increases in the prices of raw materials.

The price of olive oil is a “thorn”.

Speaking to OT, the General Director of the Greek Association of Organized Catering Businesses (EPOES), Yannis Liaros emphasized that the entire food serviceg business is going to be affected by the increase in the price of olive oil, specifically restaurants and taverns.

“Increased prices of raw materials are currently the biggest “thorn” in terms of the burden on catering businesses, at the same time that they have no room for new increases in their price lists and consumption already appears to be down” and adds that we expect let’s see the prices in the new crop as there is reduced production this year.”

Also, Mr. Liaros noted that in addition to olive oil, the prices of other basic items are also high, while he also appeared concerned about the energy costs that affect both households and businesses.

“There is no more scope for businesses to absorb these increases” declared Mr. Liaros and underlines that “perhaps the professionals in the field will proceed with other solutions such as for example reducing portions in restaurants”.

It is recalled that the European Commission reported a few days ago that the rising prices of olive oil in Europe will be maintained for another season, forcing consumers to limit their consumption. Europe is home to two-thirds of the world’s olive oil production and is a huge consumer. Prices have doubled in the past year after drought hurt harvests at key growers.

The price of olive oil

Olive oil is in such high demand that wholesalers rush to stock up, buying quantities at high prices, causing the retail price on the supermarket shelf to skyrocket. Already the price of 1 liter of virgin olive oil in supermarkets costs 15 euros.

And this before the new olive growing season has even begun. The first contracts were “closed” at producer prices above 9 euros per kilo. Which heralds a new cycle of accuracy. Several professionals are now looking to get olive oil at relatively good prices. And this is because they fear that prices will soar to unimaginable heights.

However, the Minister of Development ruled out the possibility of imposing a ceiling, because it will end up being sold on the black market. Regarding its price, Mr. Skrekas noted that “the price of olive oil will increase, because currently the oil inflation in Spain in September is 67%. In Greece it is 28.8%. This means that there is currently a shortage. That has pushed international prices up and this shows on supermarket shelves.”

And the shortfalls

Meanwhile, there is a serious issue of olive oil sufficiency considering the country’s exports at a time when Spain’s production experienced major shortfalls due to severe drought and Italy is struggling to put the Xylella fastidiosa parasite crisis behind it. which destroys entire olive groves every year.

Although it is considered reasonable that this year’s production in Greece is reduced as last year’s broke all records, there are certain factors that have further burdened the situation in our country. High temperatures in the spring and flowering season caused problems with fruit setting, along with drought which did not help the olives to grow at all.