In September, the global price of olive oil hit record highs, exceeding $8,900 per ton, as severe droughts in major producing countries weighed on supplies, according to a report released this week from the US Department of Agriculture (USDA).

Since the extent of the damage to this year’s harvest has become apparent, prices have risen steadily the report noted, with the average price 130 percent higher in August of this year, than it was one year prior. The USDA report pointed out that the prices last month quickly exceeded the previous record of $6,242 per ton set in 1996 “with no sign of easing.”

In Andalusia, Spain, the price of olive oil in September soared to €8.45 ($9.02) per kilogram, which was the “highest price ever recorded for Spanish olive oil” and a year-on-year increase of 111%.

Spain is the largest producer and exporter of olive oil in the world, followed by Greece and Italy.

The report said that as a result of supply concerns, it is expected that consumption of olive oil is forecast to be flat or down in 2022-2023 in every nation except Türkiye, where the export of olive oil was recently banned by the government in an effort to secure the supply domestically and relieve price pressures, even as domestic production stood at record levels.

Olive oil production globally was revised down this month by the USDA, to 2.5 million tons, one quarter lower than both the previous year, and the five year average.

The USDA warned, “Concerns over production in 2023/24 are also exacerbating the price spike as hot and dry conditions develop in the Mediterranean once again.”

In some cases, the soaring prices have encouraged theft, according to a CNBC report. The outlet reported that roughly 50,000 liters of extra virgin olive oil was stolen in late August from a Spanish oil mill. The stolen product would have been worth more than €420,000 ($450,000). Local media reported that shortly before that theft, thieves had stolen about 6,000 liters of extra virgin olive oil from another mill.