The price of olive oil is set to rise, as heatwaves in Spain have hit production.

Acesur supplies the UK's biggest supermarkets and said prices would rise by 20 to 25 per cent in the next three to four months, when retailers renew their contracts, as reported by the BBC.

Spain produces nearly half of the world's olive oil and has experienced extreme temperatures and a lack of rain in recent weeks.

Acesur produces more than 200,000 tonnes of olive oil a year and sells to more than 100 countries.

It sells around 20,000 tonnes a year in the UK, including own-label products for Sainsbury's, Tesco, Waitrose, Morrisons and Asda, and its La Espanola brand, which is the third biggest in the UK.

Last year, Spain produced around 1.4 million tonnes of olive oil, but his year officials are forecasting as little as one million tonnes.

The current dry weather could also affect next season's crop, if olive trees don't grow new branches due to lack of water.

Disruption to sunflower oil supplies from Ukraine is also affecting olive oil prices, as demand for olive oil has increased.