Olive oil prices have soared, we ask an expert and share cheaper alternatives

For many olive oil has become a staple in the kitchen — think salad dressings, a splash of over steaming veg or using the liquid gold as the foundation to a good soup, stew or even souffle. So what now?

I asked Richard Allen, chair of the SA Olive Association, why prices have increased, whether local producers have chosen to sell their products in overseas markets and when consumers can expect price of extra virgin olive oil (Evoo) to ease, if ever? And share a list of other available oils to use in cooking.

Olive trees are relatively hardy, but need specific climate triggers to ensure optimal yields. They thrive best in a Mediterranean climate with cool winters and warm dry summers. While the trees are drought resistant, they bear poor crops when under moisture stress. The severe drought conditions in the Western Cape between 2016 and 2019 had a significant impact on local olive production.

South Africa is a net importer of about two thirds of all olive oil consumed in the country. Europe is the largest producer of olive oil in the world with Spain alone accounting for 40% of the world’s supply. Over the last two seasons Spain experienced its most severe drought on record, which had a significant impact on olive production and olive oil stocks. This has had a knock-on effect on olive oil prices around the world. Generally. South African olive oil sells at a premium to poorer quality imports. Currently, South African oils are cheaper than imports, and as a result are dominating the retail space. And there is just not enough oil produced in South Africa to meet market demand.

 South African olive oil farmers produce between 1,800 and 2,000 litres annually while consumption is around 6,000 litres, and there is just not enough oil produced in South Africa to meet the market demand.

 There are some local producers developing export markets, but by far the bulk of South African oil is sold locally. Prices and demand is good for local oil due to the scarcity of oil from Mediterranean countries.

What about the blends of olive and seed oil sold locally at competitive prices? Seed oil blended with 10% or 20% olive oil is not olive oil. We can’t comment on the quality of these products, or the quality of the olive oil used in the blends.

Any suggestions for consumers who can no longer afford locally produced Evoo? Currently good quality South African olive oil is selling at a discount when compared to imported olive oils. Get to know the world class South African oils that are currently experiencing good exposure on our retailers’ shelves. There are signs that the Mediterranean producers are in for a good season; we should see the world supply of olive oil normalising towards the end of the year and prices could start coming down during 2025.

Other oil options to use in cooking

Butter and ghee: Used for spreading, frying, stir frying and baking, offering excellent flavour. I find by adding a splash of oil to butter when frying it doesn't burn as easily, whereas ghee, without the milk solids, is excellent used as is. The disadvantage, they are saturated fats.

Plant butter: Ideal for those following a plant-based lifestyle and used in cooking, baking and frying. Is made of a combination of coconut, avocado and olive oil. 

Sunflower oil: The most freely available, competitively priced seed oil on South African supermarket shelves. Versatile, is a saturated fat, and a general all-rounder and can be used for shallow frying, deep frying, baking, salad dressings and for making mayonnaise.

Canola: Made from the seeds of the canola plant, which are grown around the Swellendam area where it is produced. It is said to contain less saturated fat of other common cooking oils and used for frying — shallow and deep, salad dressings, baking and has a high heat tolerance like other seed oils.

Coconut oil: Hard at room temperature, it melts when heated and can be used in cooking and baking, except it does impart a coconut flavour to the food prepared in the oil. A saturated fat, it is made by pressing the coconut flesh in coconut and is available as virgin and refined. 

Avocado oil: Rich in oleic acid, avocado oil is a polyunsaturated fat it is a versatile oil used for everyday food preparations. Great for high-heat cooking, it is a mild, neutral oil and doesn't impart flavour to the food.

Grape seed oil: Extracted from the seed of grapes, a versatile flavourless oil with a high smoke point so good for shallow and deep frying. The mild neutral flavour means it can be used for salad dressing and marinades.

Peanut oil: With a nutty flavour and aroma, it is used in Asian cooking for frying and stir fries. Refrigerate if not used regularly, to stop it going rancid.

Sesame oil: Made from pressed sesame seeds, the nutty flavour adds depth and complexity to marinades, dressings and stir fries. Great used in Asian dishes, it needs refrigeration to stop is going rancid if not used regularly.