Spain Prepares for Initial Heatwave of 2023 Amidst Drought, Causing Olive Oil Prices to Soar to New Highs
The Mediterranean region, the world's largest producer of olive oil, is currently grappling with a crisis in olive oil production due to a series of heatwaves with record-breaking temperatures. Spain, Europe's leading olive oil producer, has been particularly hard-hit, with annual supplies dropping by half in the past 12 months.
The crisis began in October, marking the start of the hydrological year, when rainfall was 23% below normal. This dry spell continues, with April on track to be the driest on record in Spain, as not a single drop of rain has fallen across more than half of the country in the first 17 days of the month.
The surge in olive oil prices in Spain has been significant, reaching approximately 60% since last June, with a price of €5.4 (US$5.97) per kilogram. This increase is largely due to the impact of climate change-driven heatwaves, such as those seen last year, which were described as the worst in at least 500 years by the European Drought Observatory.
The heatwave of 2023 has arrived a month earlier than in 2022, and exceptional high temperatures are expected in the Iberian Peninsula from Tuesday to Friday. The Spanish meteorological agency Aemet has warned of an increased risk of wildfires.
Prime Minister Pedro Sanchez has identified the acute drought as one of Spain's leading long-term concerns. His government aims to help recover rivers, improve water purification and cleaning systems, and digitalize water management. Altered school schedules are under consideration to avoid classes being taught in the hottest hours of the day and to give students and teachers a chance to adapt to the extreme heat.
Swimming pools in Madrid are set to open a month earlier than usual, and the mercury is expected to surpass 40C in the Andalusia region for the first time this year.
Italy, another major olive oil producer, is also heavily impacted by climate change-driven heatwaves and droughts, facing another round of severe drought due to months of monumental water shortages. These water shortages have directly impacted crops and hydropower energy generation in Italy.
Parts of Spain have imposed restrictions on water use for agriculture, industries, public gardens, and swimming pool refilling. The debate surrounding drought is expected to be one of the central political and territorial debates in Spain over the coming years.
Despite these challenges, Spain remains a dominant player in the global olive oil market, producing about 44% of the world's supply each year, twice as much as Italy and four times as much as Greece.
