Drought Drives Moroccan Olive Oil Prices to Record Highs

At harvest time (between November and January), olive oil production is low compared to a normal season. This causes the price of this indispensable fruit in Moroccan cuisine to rise. According to professionals, the "prices are currently 10 dirhams per kilogram while the consumer pays his olive oil between 60 and 85 dirhams per liter, almost at the same level as the previous year," reports the daily Les Inspirations Éco. The possible maintenance of these prices despite an improvement in yield can be justified by the high production costs.

"The cost price has increased on all fronts. And since the harvest is minimal, the worker spends more time looking for the fruit, which costs even more. The drought has also complicated the situation. The lack of water has increased the irrigation rate, which has been multiplied by three. Added to this are the prices of inputs that have almost doubled. The cost of partnership land in relation to production also remains very high," explains Rachid Benali, president of the Moroccan Confederation of Agriculture and Rural Development (COMADER).

The accumulation of stocks could cause a rise in olive oil prices by next March. Intermediaries are buying large quantities that they are storing in order to resell them at the right time to optimize their gains. This situation tends to change, because "it is the speculators who are driving the market" today. "Towards the end of the harvest, prices will rise further to reach exceptional levels. They should go wild to cross the 100 to 120 DH/l mark, especially as the holy month of Ramadan approaches, due to the unavailability of olive oil on the market," explains Lahbib Bentaleb, president of the Federation of Chambers of Agriculture of Morocco (FCAM).

And he adds: "Indeed, quantities are being stockpiled so that olive oil is sold at a higher price. Given the high prices, the consumer no longer stocks up in large quantities as before. In short, the stock is driving up prices".