While Australian tourists and locals endured scorching temperatures across Europe this year, one of the continent’s key exports was doing the same – and it means bad news for home cooks.

Europe accounts for about 70 per cent the world’s olive oil production, with much of the olive crops coming from Spain, Italy and Greece.

These countries have endured a harsh heatwave this summer, leading to health risks, infrastructure issues and wildfires.

Stefan Vogel, RaboResearch Australia and New Zealand general manager, said these dry conditions have also wreaked havoc on olive crops.

“We are rather close to the lowest [olive crop] levels we’ve seen in more than 20 years in the [European Union],” he said.

Crop down by 40 per cent

“We’re talking about a reduction in the crop, probably in the ballpark of 40 per cent in the European Union, maybe even more.”

The resulting shortage in production of olive oil has more than doubled wholesale prices; Mr Vogel said Spanish wholesale olive oil prices are sitting at US$8800 ($13,739) per metric tonne, up from US$3600 ($5620) a year ago.

The dramatic wholesale price rise has yet to affect Australian shelf prices, but it’s only a matter of time, especially as there are no other global or local olive producers that have enough product to offset the current shortage.

Prices are expected to remain high until next year’s crop is harvested.

Luckily, olive oil is not usually a frequent addition to shopping trolleys.

The memory of the race to strip shelves of flour, grains and basic oils during COVID lockdowns is likely all too fresh in the minds of many Australians.

Mr Vogel said it’s unlikely shoppers will be seeing a repeat of those events, however, as there isn’t as much demand for the product.

“But … rather than having plenty of brands around in the store, we may see a few less on shelf, or some of those showcasing significant higher prices,” he said.

“Consumers, even here in Australia, will have to adjust their consumption habit and say: ‘Well, maybe I’ll just use a canola oil in my salad rather than an olive oil’.”