Fraudsters are cashing in on the olive oil crisis

The olive oil crisis has been ongoing for some time - extreme weather has impacted production (particularly in the Mediterranean) which has lead to a worldwide shortage. Spain is responsible for over 40% of the worldwide production of olive oil (sometimes referred to as “liquid gold”) and is typically expected to produce in the region of 1.3 - 1.5 million metric tonnes each harvest. In the 2022-2023 harvest, production in Spain was down to 660,000 metric tonnes. 

As a result of the crisis, the cost of olive oil has more than doubled since 2018. As with any expensive product, or a supply vs demand issue, fraudsters have seized the opportunity to cash in and there was a record number of fraud and mislabelling cases in the EU in Q1 2024. These included cases in which “olive oil” products had been contaminated with substances such as pesticides, mineral oils and glass, as well as the mislabelling of “extra virgin” olive oil mixed with cheaper quality oils (such as lampante oil, which can be unfit for human consumption if not properly refined).  

Earlier this month, authorities in Italy seized 42 tonnes of fake olive oil worth almost $1million and 174 bottles of potentially fake champagne from a number of sites in Puglia. This is only one of a number of similar stories over the last few years - in December 2023, officials in Italy and Spain charged 11 people with selling oil not suitable for consumption and seized 260,000 litres of fake olive oil fraudulently marked as “high quality”. 

There are a number of regulations in the EU regarding the marketing, labelling, packaging and quality assurance of genuine olive oil across eight different categories of products; however, olive oil scams are still on the rise as demand continues to exceed supply and consumers are seeking out cheaper products as prices keep rising whilst the production crisis deepens.

What is perhaps the most concerning for consumers is the risk that products labelled “olive oil” could be contaminated with substances unfit for consumption.