Olive oil is crazy expensive right now – it has more than doubled in price in the last year earning it the nickname “liquid gold”.
Why did this happen? Catastrophic high temperatures and droughts throughout Europe and the war in Ukraine. Inflation may play a teeny tiny role here, but not much.
International Monetary Fund, Global price of Olive Oil [POLVOILUSDM], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/POLVOILUSDM, July 23, 2024
The global demand for olive oil is HUGE. So huge that criminals have turned to making fake olive oil for profit. Criminal activity aside, it’s delicious. It’s a healthier choice when it comes to fat. It’s a staple in many diets around the world. It’s also a major ingredient in many handmade soaps and other body products…mine included.
This price situation leaves me with a bit of a dilemma and a lot of thinking to do…
I may need to alter my recipe to include alternative oils with similar properties to olive oil – sunflower oil and rice bran oil are options. If I replace olive oil completely that could change the feel of my soap. Alternatively, I could just replace a portion of the total volume of olive oil with a different oil. I could increase my prices but that’s not an option I want to consider right now.
Maybe I’ll just bury my head in the sand and hope that the price eventually drops? This will be an interesting story to follow because I don’t see this getting better considering that the planet is in a full on “hair on fire emergency melt down” that is mostly being ignored – it’s that whole head in the sand thing I guess.
I’m currently looking at my last container of olive oil…I need to buy more because I need to make more soap. But damn, this purchase is going to hurt! I love my soap recipe and the feedback I get from my customers tells me that they love it too. Any good sales on olive oil right now?