As it is considered an agricultural product of excellent quality, its price sometimes goes up or down, but the reality is that its cost will frequently increase; it is similar to the stock market, and this is due to two factors: supply and demand.

Analyzing the specific causes objectively, we have found that:

1. In some years, olive oil production faces strong demand, which is why there is a price increase in the market.
2. The main cause is seen in the low olive production of the last 3 years, resulting in a poor harvest.

What happens is that due to climate change, there have been poor harvests, and the appearance of pests that are not at all good for the health of the olive tree is noted as another variable affecting production.

3. The price consists of production and its cost; by this, we mean that farmers and the fields are responsible for ensuring an excellent quality oil, which is requested by the consumers themselves, and as we know, the market must be subject to these needs.
4. The final cause is due to wholesalers, as they intentionally alter the price of the oil.

What factors does the price of olive oil depend on?

It is no secret that the essential factor is production, since the price of the product depends on it. 

Since production is important, poor harvests must be prevented; sometimes this is inevitable due to the other factor, which is climate change.

Spain is rich in extra virgin olive oil, commonly known as liquid gold, as it has high demand because many prefer to consume a natural product of good quality.

It possesses great benefits and contains properties that contribute to human health. It is also considered a very good cosmetic product for women, who use it on their faces and hair as well.

As a consequence of the various uses it provides and facilitates, its price increases since it is 100% agricultural, natural, and contains no components that cause harm in any way.

Other factors that influence the price of olive oil

• Meteorology; the limitation of olive production depends on it. A clear example happens when there is a rainy season; that is the moment when a reduction in the harvest occurs, which is not favorable, and as a result, the supply of oil drops, but a price increase is generated in the market; this gives rise to maintenance costs in the crops.
• Returning to the type of cultivation, it is necessary to know where it comes from, whether a traditional olive grove or an organic harvest.
• The well-known supply-demand is the cause and factor that establishes the price. From here arises the main and basic rule of the market, since it reflects the economy, the demand the product has, and the quantity of oil available. This is the base point through which companies study and set a price with which they can earn in the market.
• Another fundamental cause that cannot be overlooked is the image; plastic packaging is not the same as glass, which is why this product is one of the most requested, because its image influences sales to the consumer.

How is the final price determined?

Companies establish the value according to the development and production of the product. An analysis of forecasts must be made to arrive at the final price.

Finally, the price will always have variations due to high demand; it is similar to stock market statistics; sometimes its price can go down, but it usually tends to go up.