“The Water Crisis in Spain Threatens the Olive Industry and the Economy”

“Lord, send us water!” – the words of Bishop Sebastian Chico seem to remain unheard for now. It hasn’t rained in the southern Spanish province of Jaen for months. Recently, Bishop Chico led a church procession through the eponymous capital of the province, in which many olive producers from the region also participated. They also offered their prayers for rain.

And there’s a reason: if it doesn’t rain, they will have to write off the harvest – for the second year in a row. However, the consequences of this are for everyone, not just farmers: the high prices of olive oil will continue to rise anyway.

“Without water there are no olives. And without olives, the countryside suffers,” says Bishop Chico. “Our economy depends on olive production.” 66 million olive trees grow in the hilly province of Jaen with a population of 630,000. It is the most important olive growing region in the world, where the olive oil consumed in Europe is mainly produced.

Water for residents and tourists, but not for farms

And meteorologists cannot please Spanish farmers with good news. The country’s water shortage is causing problems not only for Jaen’s olive farmers. Much of the rest of the country’s agriculture was also affected. Spain’s state meteorological service said no more serious rainfall is expected until autumn. And climate scientists are issuing even more sobering warnings: in the long term, Spain will have to adjust to higher temperatures and less rainfall.

Jaen’s water drama can also be seen in the inland dams. Now, in the spring, they are only 25 percent full. This may be enough to supply the population and tourists with drinking water, but farmers receive only a quarter of the normal amount.

Even hardy olive trees are in danger

“The situation is catastrophic,” admits Juan Luis Avila, an olive grower from Jaen. “This year, not only the harvest is at risk, but also the future of the olive plantations,” he says. There have been several heat waves recently and the colors of many trees have literally burned in the almost 40 degree temperatures, he further explains. Much of the olive crop, which is usually harvested between November and February, has already been lost, Avila said. According to him, the situation has never been so bad. Last season was bad, and the lack of rain and heat waves were already felt in 2022. It was also Spain’s warmest year on record. “The harvest was 70 percent weaker than in previous years,” says Avila. He predicts that next season’s harvest is likely to be even weaker.

Spain is not the only one suffering from the drought

In the 2021/22 season, Spain still produced almost 1.5 million tonnes of olive oil. In 2022/23, this amount was already 680,000 tonnes – less than half the previous figure. If the gloomy forecasts come true, large-scale losses could occur again in 2023/24.

The situation is no better for olive producers from Portugal and Italy. This further raises the prices of olive oil on the European market. Some Spanish producers have even started to offer a new product in which they mix the precious olive oil with the far cheaper sunflower oil. This mixture has a better price. The difference in ingredients compared to regular olive oil can only be understood from the fine print on the label.

In 2021/22, European farmers produced just under 2.3 million tonnes of olive oil, according to EU statistics. In 2022/23, this amount was already just under 1.4 million tonnes. If the sector is not even worse, it is due to Greece, where the water shortage is less felt. It is also the only European country that managed to increase olive oil production in the last season. The problems of the olive plantations led to a record increase in the price of olive oil. Its value in Europe is now on average 50% higher than it was 12 months ago, according to an EU study. All this means that there is a risk that olive oil, an indispensable part of Mediterranean cuisine, will become a luxury commodity.

Author: Ralph Schulze