Why Thieves Steal Olive Oil: The Surge in Prices and Its Impact
According to recent news reports, thieves are stealing olive oil instead of gold due to the surge in olive oil prices. The prices of olive oil have spiked to record highs, primarily due to severe droughts in major producing countries, which have crimped supplies and driven up thefts in cooking oils.
The Price Surge and Its Impact
Global prices for olive oil surged to 8900 per ton in September. In Spain’s Andalusia, prices of olive oil have soared to €8.45 to €9.02 per kilogram, marking the “highest price ever recorded for Spanish olive oil,” based on the company’s data spanning over 20 to 30 years. This represents a year-on-year jump of 111 percent. The unprecedented rise in prices has contributed to a significant increase in thefts, turning olive oil into a precious commodity referred to as “liquid gold.”
How Thieves Steal Olive Oil
Thieves generally target olive oil in two main ways: they break into mills at night to steal oil from storage tanks, and they steal olives from groves. Some thieves even spend the time to harvest olives directly from the trees. One dramatic example was the theft of 50,000 liters of extra virgin olive oil worth over €500,000 from a mill in Spain’s Cordoba province. This heist took place in the early hours of August 30th, involving two tanks that were loaded with the valuable oil in the darkness of night.
Regional Impact and Consequences
The prospect of another poor harvest has not alleviated the situation. Greece, the world’s third-largest producer of olive oil after Spain and Italy, has also experienced a rise in olive oil thefts. With at least 37 tonnes thought to have disappeared from the cooperative’s storage facilities and more than 100kg believed to have been taken from plastic barrels in Messinia, the raids have drawn renewed attention to the notion of olive oil as “liquid gold.”
Climate Change and Supply Chain Challenges
Spain’s olive crisis serves as a stark reminder of how climate change threatens supply. A devastating drought slashed the nation’s olive oil output in half in the 2022-23 season, and production challenges in Italy have further crimped global supplies. Further exacerbating matters, dryness and heatwaves have threatened Spain’s upcoming harvest. Farmer group ASAJA expects a similarly poor crop.
These factors, along with the resulting price increases, have made olive oil a frequent target for crime. Higher prices often encourage more illicit activity, affecting commodities like platinum, copper, and lumber. In the case of olives, bandits are targeting both the harvested fruit and processed oil. The theft of 259,000 kilograms of olives in Spain’s key Jaen region in the 2022-23 season, up 29% from the previous year, underscores the gravity of the situation.
Other Forms of Olive Oil Crime
Apart from theft, fraud has also become a serious concern in the olive oil industry. In March, authorities in Spain’s Extremadura region withdrew 11 brands from the market for being mixed with other oils and not being fit for consumption. This highlights the need for stricter regulation and traceability measures to protect both producers and consumers.
Measures to Combat the Issue
To improve security, producers are taking various measures, including installing new gates and considering hiring guards. Martin Parra, the manager at Marin Serrano El Lagar SL, the company affected by the recent theft, expresses hope that the police can find the culprits. However, the lack of official traceability documents means that if the oil leaves the country, it could be deemed lost.
The surge in olive oil prices is not just a financial problem; it has significant implications for global supply chains and the livelihoods of farmers. As climate change continues to impact agricultural practices, the fight against olive oil theft will remain a critical issue for producers, governments, and law enforcement.
Conclusively, the rise in olive oil prices has led thieves to steal it rather than gold. The price surge has fueled an increase in thefts of cooking oil, from criminal organizations breaking into mills at night to steal olive oil from storage tanks to olive thefts occurring in groves.