The Increase in Olive Oil Prices in Peru

According to the report from the Ministry of Agricultural Development and Irrigation (MIDAGRI), in 2022, olive production in Peru reached a total of 227,000 tons. The main producing regions were Tacna, which accounted for 77.7% of the national production, followed by Arequipa with 18.5% and Ica with 2.6%. Furthermore, there has been an average annual growth of 9.7% between 2010 and 2022.

The total olive oil production amounted to 1,408.2 tons in 2022, with an average annual growth of 12.0% from 2010 to 2022. According to FAO data, in 2020, Peru ranked 25th among olive oil-producing countries, well below Argentina (30,000 tons) and Chile (21,900 tons) in the region.

Regarding olive oil exports, they reached a total value of USD 8.8 million in 2022, showing an impressive growth of 103.4% compared to 2021. This was mainly due to a low base effect, after experiencing contractions of -38.8% and -9.7% in 2020 and 2021, respectively, due to reduced product demand caused by price increases. (ADEX)

Among the main destinations for Peruvian olive oil exports are Spain, which accounted for 49.9% of total shipments in 2022, followed by Chile at 17.1%, the United States (9.9%), Australia (9.0%), Zona Franca Peru (5.2%), Ecuador (3.7%), Colombia (3.2%), among others. 

In fact, given that approximately half of Peruvian olive oil exports go to Spain, and due to the significant price increase in that market, there has been a rise in the price of olive oil in the local market. Additionally, the limited olive production due to climatic factors, such as the El Niño phenomenon, and the reduced supply of oil from the last harvest have also contributed to this situation.

For example, in the wholesale market of Tacna, you could previously purchase a liter of olive oil for between 15 and 20 soles, while today you find it for between 20 and 25 soles. Similarly, in supermarkets and stores. In summary, the price in the domestic market has experienced an increase of 40 to 50%