The price of olive oil reaches a record, goes up to 1,100 ALL/liter

2024-10-29 07:30:00, Ekonomi CNA

The sale price of olive oil this year reaches record levels. In processing factories from Marikaj to Berat, the selling price of unpackaged oil varies from 700, 800 to 1,100 lek per liter.

For years, unpackaged oil was sold at a price of 700 to 800 ALL per liter. Compared to years, the sale price has increased by 38%. The processors say that the price of bottled oil is also expected to increase, up to 15 euros per liter.

The main processors claim that this year's price increase has come from the increase in the cost of production due to the doubling of payments to olive harvesters and from the extremes of the weather, which brought a decrease in yield.

Silvana Subashi of the processing factory "Subashi" says that although the amount of olive production is higher than in years, the yield of production due to the drought is very low. According to her, including the doubling of payments for harvesters, these are the main factors that brought the cost of olive oil production up to 940 ALL per liter and 1,100 ALL per liter of sales this year.

"The doubling of labor fees is the main factor that made the cost of olive oil production more expensive this year. If last year the payments to the harvesters were 200 Lek for shaking 1 kg of olives, this year the harvesters were paid 400 Lek, as it is impossible to find employees. The fee for shaking olives, 400 lek per kg, is too high.

Another factor that has influenced the increase in production costs is the drastic drop in production yield. If in previous years the production yield was from 15 to 17 liters of olive oil per 1 kv of olives, this year it reached 10 to 12 liters. The drop in yield is drastic.

Due to these main factors, including the costs for olive maintenance and service, the cost of olive oil production is calculated at 940 ALL per liter. While the selling price of the oil will be 1,100 ALL per liter. In addition to the removal of the VAT scheme, the increase in the amount of crude oil that is collected by Italian wholesalers is affecting the increase in the selling price," she said.

Even Kastrijot Çuadari, one of the main gatherers and processors in Berat, said this year despite the fact that the production of olives is higher compared to years, it is found that the production yield is decreasing.

"The main factors that have influenced the decline in yield are the high drought in August, which dried up the trees, and the high humidity in September, which caused swelling of the olive fruit," he says.

In 2022, when the amount of production was high, the olive oil was sold by the farmers below the cost of production at prices of 350 to 400 ALL per liter.

For 2022, the production yield per olive root, according to INSTAT data, was 17.2 kg. Compared to 2021, the yield per root increased by 37%. In 2022, there was also an increase in the number of olive roots. Compared to 2021, the number of olive roots increased by about 2%.

As for 2023, the lack of production doubled the sale price of olive oil compared to 2022. The olive oil was sold by the farmer at a price of 700 to 800 lek per liter. The tightening of the price came from the drop in production 30 to 70% compared to years. Last year there was also an increase in the amount of olive oil that was exported, mainly to Italy.

For 2023, the production yield per olive root, according to INSTAT data, was 12.4 kg. Compared to 2022, the yield per root decreased by 30%. In 2023, there was also an increase in the number of olive roots. Compared to 2022, the number of olive roots increased by about 1%./ Monitor magazine