CJ, Sempio raise olive oil prices by over 30%

[Photo by Yonhap]

South Korea’s major food companies are raising the prices of olive oil products by over 30 percent amid a steep increase in international prices led by droughts and heatwaves in Spain, the largest producer of olives.

According to industry sources on Sunday, CJ CheilJedang Corp. and Sempio Foods Co. have raised the prices of olive oil sold through major large retail chain stores by more than 30 percent.

The price of CJ CheilJedang’s Beksul Cold Pressed Olive Oil 900ml has increased from 19,800 won ($14.5) to 26,500 won.

Dongwon F&B Co. and Sajo Daerim Corp. also plan to raise olive oil prices by around 30 percent within this month.

The phenomenon of climateflation, where food prices rise due to abnormal weather conditions, is accelerating as Mediterranean countries, including Spain, the main olive oil-producing region, struggle with adverse climate conditions.

According to customs data, the import unit price of olive oil has been rising annually, reaching $10.6 per kilogram in the first quarter of this year from $3.9 in 2020, more than doubling in four years.

International olive oil prices have hit record highs.

According to the International Monetary Fund (IMF), the price of olive oil in the first quarter reached $10,088 per ton, nearly doubling from the same period last year ($5,926).

The decrease in production due to droughts in Spain, which produces nearly half of the world’s olive oil, over the past two years is believed to have contributed to this increase.