Olive Oil Market Digest w5

Weekly Olive Oil Market Updates

Price Updates

We used data from the most recent olive oil transactions on the Wikifarmer Marketplace, as well as data shared by the Union of Olive Oil-Producing Municipalities of Crete, PoolRed, and Ismea Mercati, in order to compile the following numbers on the movements of mean olive oil prices across the major olive-producing countries in the EU: 

The numbers on Greece imply the existence of signs that inflationary trends are easing. Especially for bottled offerings destined for retail outlets, foreign operators demand decisive price re-adjustments to fill their shelves with Greek products. The significant drop in consumer demand for relevant products justifies these requests, especially in markets where olive oil isn't a staple in dietary habits.

Regarding Italy, our representatives across the country's leading markets report that operators aim to retain the stable climate of recent weeks. Overall, even though the production outcome of the season is less than the average of previous seasons, availability rose after December, meeting the need to serve the robust demand for the product. 

As for Spain, commercial transactions have slowed down noticeably, with operators waiting for the next monthly update from the Food Information and Control Agency to be released. 

Review of the Influence of Weather Phenomena in this Season

As we approach the end of olive harvest season in the main European players of the market, the critical role of climate change and its dire implications on the agricultural sector's economic -and consequently social- effects become increasingly apparent.

Spain is a country where, even though the total production output for olive oil slightly increased year-on-year, its numbers make for a minuscule portion of its average annual yield. Adverse meteorological conditions constituted the single most crucial factor contributing to this result, with this year's total reimbursements paid by the Spanish agricultural insurance system having increased by 56% compared to last year.

The allocation of those funds is as follows: 

These record-level reimbursements were mainly funneled to operators whose activity was damaged due to the prolonged dry periods Spain experienced deep into the "cooling" period of the year, namely the crucial months of October and November. This weather frame was a typical occurrence across the Mediterranean; from Spain and Morocco to Greece and Turkey, everyone hopes to achieve healthy weather conditions in the coming months so trees do not flower prematurely and olive groves can yield up to their capacity.

An immediate result of the drought problem is water scarcity. To resolve this, stakeholders may not just rely on the evolution of meteorological phenomena but also take swift action. This problem was felt by European producers this year, with very adverse implications for areas whose whole livelihood depends on olive oil yields, like various poor areas of Morocco. The solution to this challenge goes beyond generous funding programs to improve the irrigation infrastructure; precision agriculture and enhanced efficiency at water management are needed across olive groves. Fortunately, research institutions and universities located in neuralgic parts of the olive-producing world are making brave steps toward adopting cutting-edge technologies and techniques that promise to contribute to this cause. A prime example of the previous is the University of Cordoba's recent funding to push AI (Artificial Intelligence) usage in agricultural production processes.

Wikifarmer negotiates with several suppliers to secure a steady supply of Olive oil at reasonable prices. Our team can help you with price negotiation, pay with credit terms, and arrange logistics and transportation. We also implement strict Quality Assurance procedures, making sure that producers provide us with all certificates that prove their claims about their products, and that all relevant analyses take place. 

Our contribution is not constrained just to the facilitation of value optimization for the various market players. We also invest a lot in making sure that our highly-valued partners, either from the supply or from the demand side, keep up with the latest developments in their fields.

This is why we have created Wikifarmer Academy, in order to offer affordable educational courses to all. The Wikifarmer Academy is an online school that aims to provide complete educational courses that will empower you and help you cultivate more efficiently and sustainably. In case you are interested in learning more, check our new course "Wikifarmer Expert in Sustainable Olive Oil Production, Quality, and Economics" here.