Jaen city and surrounding Olive groves and trees, Jaen is known as the Olive Oil capital producing around 25% of global supply and over half of Spain’s olive oil production.<\/p>\n
Ucg | Universal Images Group | Getty Images<\/p>\n
Spain’s Deoleo<\/a>, the world’s largest olive oil company, says a period of unprecedented volatility<\/a> has unequivocally given way to more stable market conditions, citing an unlikely catalyst in helping to lift U.S. sales.<\/p>\n “The highly complex market cycle experienced between 2022 and 2024, which had a severe yet temporary impact on the industry, is now definitively behind us,” Deoleo CEO Crist\u00f3bal Vald\u00e9s told CNBC via email.<\/p>\n Favorable rainfall trends across major producing nations, including Spain, have paved the way for a solid global yield for the upcoming harvest, Vald\u00e9s said, consolidating a more robust and balanced global supply.<\/p>\n The update comes as analysts raise concerns<\/a> about the prospect of global olive oil supplies swinging dramatically from one season to the next, particularly as issues such as climate change<\/a>, water scarcity<\/a> and pest and disease<\/a> pressures persist.<\/p>\n Deoleo, the maker of household olive oil brands such as Bertolli and Carbonell, previously described<\/a> the three-year window from 2022 to 2024 as one of the most challenging periods in the sector’s history.<\/p>\n Severe droughts and searing heat across vast swathes of southern Europe destroyed large parts of the olive oil harvest, culminating in a dizzying price rally that shocked<\/a> industry veterans and consumers alike.<\/p>\n Olive oil prices have since moderated, prompting an increasing number of American consumers to adopt what has long been a staple of a healthy Mediterranean diet into their daily routines.<\/p>\n “This supply stabilization provides greater predictability across the entire value chain and allows us to anticipate a more stable pricing environment. This, in turn, is driving a recovery in global household demand,” Vald\u00e9s said. <\/p>\n Alongside Italy and Greece, Spain is one of the world’s leading producers of the precious commodity and a global reference for prices. <\/p>\n Extra virgin olive oil (EVOO) prices in Spain stood at about 3.9 euros ($4.47) per kilogram, according to the European Commission’s latest weekly data<\/a>, extending a steady downward trend since the start of the year. <\/p>\n It is a far cry from Jan. 2024, when wholesale EVOO prices soared to a record high of 9.3 euros per kilogram.<\/p>\n