Drizzle and Drought
The drought in Spain will undoubtedly hurt their sales. They were the largest producer for olive oil throughout the world but with the drought, their selling price has been inflated 50% more than last year. This introduces a huge barrier to entry for surrounding European countries. Since Spain will be charging a price so high for their olive oil, countries like Italy and Greece, the next largest producers, will reap all of the profits and benefits instead.
Not to mention the ongoing need for olive oil, or extra virgin olive oil. We use this oil in our every day cooking, everywhere throughout the world. The product is universal, despite the different qualities you may be able to find. Since it’s such a normal good, a rise in price will force consumers to stray away from the use of it. Which is why more producers will intervene, and sell the oil for less.