Unfortunately we must inform you of a new price increase but, given the significant and rapid increases that are occurring in the sector, we have no choice but to pass them on.

These price increases come as a result of very pessimistic estimates that were being projected for the OCT 2022/FEB 2023 crop. But due to the weather conditions experienced in Spain (the world's leading producer of olive oil) where heat waves and drought in 2022 damaged the crop, the estimates fell short, leaving a crop of 660,000 tons, a reduction of 50% over the previous year.
The situation has been worsening as the months go by during this 2023 for the following reasons:

(i) Consumption has not fallen as much as it should and there is no oil available in the world to cover the current demand.

(ii) The weather has hit the fields again during this year 2023 for the second consecutive year, and it is already known that the harvest has been damaged and will be very similar to the previous one. This is already irreversible because the extreme heat waves have damaged flowering and prolonged drought makes the little fruit that there is, have a very small size.

The difference between this harvest, which will begin at the end of 2023, and last year's is that there was a surplus of oil from the previous harvest (about 450,000 tons). This year we are going to reach the harvest of the new crop without any surplus, so the oil available worldwide will be less than last year and the worst in many decades.

We are working to ensure that our markets are not affected and we are committed to our customers to guarantee supply, which is our main objective.

Furthermore, we want to come out of this situation stronger, so we have established a pricing strategy that will give us an advantage over the market. This may take some time to be reflected depending on the inventories and rotation of the competition, but in a few months we should see the results.

Below we explain the pricing situation:

According to data from the Spanish Ministry of Agriculture, oil prices have risen 92.7% in the period from mid-September 2022 (week 37 of 2022 according to the graph) to mid-August 2023 (week 33 of 2023 according to the graph).

To compare the Torres and Ribelles price increases against market increases, we start from the reported tariff in October 2022, the same date as the starting point of the Spanish Ministry of Agriculture graph.

The price increase from the October 2022 tariff to the current one that we are communicating has been approximately 53% in extra virgin and 49% in olive. This is well below the increase in bulk prices at origin.

In other terms, olive oil at origin has increased by 92.7% and Torres y Ribelles has increased only in the same period by approximately 52%. This corresponds to olive oil alone, excluding cost increases for other materials, energy and salary increases.

This has been achieved thanks to the good purchasing decisions made and the execution of a restructuring and cost evaluation plan that should give us an advantage.


As partners, we hope that we will continue to maintain mutual trust in order to carry out all the plans that we must develop in order to emerge stronger from this complicated situation.