The Rising Costs and Potential Authenticity Issues Surrounding Extra Virgin Olive Oil
Escalating prices of extra virgin olive oil due to climate change-induced poor harvests in the Mediterranean Criminal gangs resort to tree theft and adulteration with substandard oil, amplifying concerns over quality and authenticity
For millennia, olive oil has been a fundamental part of the Mediterranean diet and culture. It was initially used for medicinal and religious purposes before becoming a table staple, earning the nickname "liquid gold" in Homers "Iliad."
Today, the olive branch has come to symbolize peace and prosperity, and the pungent extra virgin and virgin olive oils are high-value global exports. In 2022, the olive oil market was valued at $22.3 billion and is projected to experience significant growth over the next decade.
The world's most popular extra virgin olive oils, produced in Italy, Spain, and Greece, are tainted by criminal enterprises selling fake products made with sunflower, canola, or even lamp oil. This illegal activity can result in retail prices of up to $30 per liter in the United States. In late November, law enforcement authorities in Spain and Italy, in partnership with the EU's Europol agency, apprehended 11 individuals associated with one such criminal organization. They seized 12 barrels containing approximately 260,000 liters of adulterated, non-virgin, or extra-virgin olive oil.
An extra 5,200 liters of market-ready quality oil destined for export was also confiscated. The authorities declared the oil "unfit for consumption," as it had been falsely labeled as 100% Italian or Spanish. Furthermore, authorities discovered 91,000 euros (almost $100,000) in cash, four high-end vehicles, forged labels, and documentation claiming the oil was of Spanish and Italian origin. However, tests on samples indicated that the oil was most likely produced by blending olive oil byproducts with other types of oil.
Demand for olive oil and recent struggling harvests have led to sharp increases in the price of olive oil.
Budrul Chukrut/SOPA Images/LightRocket/Getty Images
Rising demand
According to a statement from Europol, a combination of factors including overall price inflation, decreased olive oil production, and rising demand has provided ideal conditions for fraudulent producers. Europol also stated that the counterfeiting of extra virgin olive oil is a widespread issue, making it a top priority for law enforcement in countries where it is produced.
The demand for Mediterranean olive oil exports is increasing, but harsh weather is causing lower production rates. As a result, there is a common practice of infusing high quality olive oil with lower quality products. Additionally, fraudsters are using chlorophyll or beta carotene to mimic the characteristic green or buttery yellow hues of olive oil. This information comes from Coldiretti, Italy's main farming organization.
The truffle fair of Alba, Northwestern Italy, on October 21, 2023, features a stunning image of a white truffle. (Photo by Marco BERTORELLO / AFP) (Photo by MARCO BERTORELLO/AFP via Getty Images)
Marco Bertorello/AFP/Getty Images/File
Italys prized white truffles sell for big money in fancy restaurants. But theres a deadly cost
Mediterranean oil production experienced a 41% decrease in 2023, according to Coldiretti. The olive trees produced fewer flowers due to an unusually wet spring, and the record-setting summer heat caused the olives to shrivel. As a result, producers are now unable to keep up with marketplace demand.
In the Mediterranean oil producing regions, the "agri mafia" has been infiltrating the market to produce and sell fake extra virgin olive oil to meet the gaps in supply. Europol reports that by blending consumer-grade olive oil with lower grade substitutes, these criminals have been able to offer competitive prices and integrate their products into legal supply chains.
"This illegal practice can not only cause a public health risk, but also undermine consumer trust and thus have further economic repercussions," the statement warned.
Olive groves have been targeted by thieves who steal trees wholesale or saw off branches laden with fruit.
Tim Graham/Getty Images
Chainsaw attacks
While their doctored products are far from authentic, the criminal gangs do need quality olives for the base oil that is used to create their blends.
There has been an increase in the theft of whole olive trees or productive branches, particularly in Greece and Italy. Thieves have resorted to using chainsaws to steal olive-laden branches from ancient trees. The delicate process of olive harvesting makes stealing entire trees or branches easier than picking the fruit, despite causing significant damage to the trees.
Authorities in Greece, Spain, and Italy have also seen an increase in olive warehouse break-ins and the sabotage of harvesting equipment in an effort to postpone the harvest and steal the olives instead.
Panorama on Lake Como, with the ski lifts closed, present on Monte San Primo.
Daniele Mezzadri/iStockphoto/Getty Images
The Italian ski resort closed due to climate change intends to reopen using artificial snow, but this plan is not supported by everyone.
Spanish and Italian officials, who made the significant arrests in November, stated that the investigations were initiated after the discovery of "anomalies." These anomalies included a report of a lower-quality olive oil truck entering a production facility where oil meant for export was being processed.
In Europe, olive oil ranks as one of the most frequently mislabeled foods and is the subject of numerous investigations, as reported by the European Commission in 2022.
According to Coldiretti, the counterfeit olive oil industry is fueled by high demand.
The prices of extra virgin olive oil are expected to remain high despite the 2023 bad harvest. Following a Spanish drought in 2022, the price of olive oil from Spain, the largest producer of the extra virgin variety, increased by over 80%. Italian oil prices also rose by 66% despite a normal harvest last year. With both countries experiencing production shortages this year, the prices for the 2024 export season are projected to rise even further, potentially attracting criminal activity to the market.
