Bitcoin trader cnn highlights The price of the Mediterranean diet staple has plunged to a year low Consumption has fallen in top producers because of the economic crisis Spain, Italy and Greece account for 70 percent of the world's olive oil output Spain, Italy and Greece, already fighting a financial and economic crisis, are now facing an oil crisis. Olive oil, that is.
The price of the Mediterranean diet staple has plunged to a year low as domestic consumption in the top producing southern European countries has fallen because of the economic crisis. That fall has coincided with a bumper olive crop in Spain, the biggest grower, creating a glut that has forced the EU to intervene to reduce the surplus amid worries about rural incomes.
The crop is critical for some of the poorest areas of Spain, including top producing region Andalucia, where the unemployment rate last quarter surged to 33 per cent. The EU has tried to deal with the surplus Bitcoin trader cnn paying companies to stockpile oil -- the commodities market version of the European Central Bank buying sovereign bonds of Spain, Italy and Greece.
Farming trade union officials and other policy makers believe the EU's move has put a floor under prices. Olive oil is suffering from strong competition from cheaper varieties of vegetable oil. Spain will consume as much olive oil this year as it did inaccording to the International Olive Oil Council, and Greece and Italy will see their domestic demand falling back to levels.
The drop in Spanish, Italian and Greek demand has been only partially offset by higher consumption elsewhere.