The world financial situation is affecting the supply of edible oils, such as soya bean oil and palm oil, as producers apply less fertiliser and development stalls.
Analysts predict the increased consumption of fried foods in Asian countries and continuing demand for palm oil for electricity generation will mean a supply shortage in the coming year. This may increase the demand and price for other vegetable oils such as canola and sunflower oil.
This could be good news for olive oil producers which produce around 4% of the world's edible oils. Olive oil is usually around double the price of oils such as canola and sales should benefit if the price differential is reduced.
Seen as a healthier vegetable oil than competing oils, consumers may respond to the closing of prices by electing to buy the healthier product for slightly more.