Olive oil shortage set to send prices soaring

Shoppers are facing soaring prices for olive oil because Greek producers are stockpiling it due to fears about the economy, a report has said.

It seems olive oil in tanks is safer than cash as the Greek economy goes into meltdown.

Filippo Berio, Britain’s biggest olive oil brand, reports prices are 20 per cent higher than a year ago due to growing demand worldwide. But the company warned that Greek producers’ reticence to sell their oil could make the situation worse.

‘Growers think stocks of olive oil in tanks is a safer bet than cash in the bank,’ managing director, Walter Zanre, told trade paper The Grocer.’

‘Greece is a source of high quality extra virgin oil and this is putting additional pressure on prices.’

‘At some point the oil will have to be sold but in the short term it could cause a spike in prices.’ Greece is the third largest producer of olive oil, behind Spain and Italy.’

There are concerns that Spanish producers will adopt a similar strategy as a result of the downgrading of Spain’s credit rating and uncertainty over their economy.’

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