Weekly Olive Oil Market Updates
Price Updates
As of February 19, the image we can form regarding the current conditions in the primary Mediterranean olive oil-producing countries is illustrated in the following table. The data used to compile it comes from bulk transactions that took place on the Wikifarmer Marketplace, as well as trusted industry sources from Greece (Union of Olive Oil-Producing Municipalities of Crete), Spain (PoolRed), and Italy (Ismea Mercati).
Limited commercial transactions characterize the current conditions in Greece, lowering EVOO prices even further and stapling Virgin and Lampante prices at the low levels of previous weeks.
In Italy, regional variations exist on EVOO, but the overall image is one of the established stability to which we have been accustomed.
Regarding Spain, the latest price movements reflect the two forces driving the market. On the one hand, there is significant uncertainty among suppliers and packagers since their financial interests are growing increasingly conflicting as we approach the end of the season with a dismal image regarding the final available inventories. On the other hand, there is limited optimism revolving around the signs of a positive outlook for the next crop, which we have discussed. At the same time, as the crop is reaching its end in various regions of the country, local sources showcase contrasting outcomes. As a result, days of high activity alternate with days of subdued market dynamics, which is reflected in price fluctuations, especially in the EVOO segment.
In all markets, especially in the Italian and Spanish ones where the product is in much higher scarcity, our representatives are reporting a spark in interest for Tunisian oil orders, driven by the start of a round of tariff-free Tunisian olive oil exports to EU countries.
Innovative Applications for Olive Oil By-Products
The University of Alicante has made significant progress towards developing new active packaging materials based on olive pits and almonds. These materials work by trapping the gases emitted by the maturation process during fresh produce transport, slowing it down and extending its shelf life. Adopting such technologies helps boost the financial results of the demand side of the fresh produce market by limiting inventory loss and reducing food waste overall, driving the sustainability of the sector.
Such developments expand the commercial opportunities for olive farmers, highlighting how the interests of the supply and demand sides in the olive oil trade are aligned in many cases.
It is clear, though, that taking action based on the potential impact of such initiatives requires their appreciation by engaged parts. However, a lack of similar past initiatives of mutual benefit hinders this process. Furthermore, the established opacity of procedures behind new investments and their funding typically makes all sides overly suspicious of each other.
Our view
For us at Wikifarmer, sustainability and business growth for enterprises of both the primary and the secondary sectors across agricultural value chains are tightly linked, and that is not driven merely by financial interest; consumer concerns are pushing operators to reduce the heavy environmental footprint of their business activities. The authorities are already taking steps, but they are mainly concerned with production, as the latest relative EU initiatives are solely concerned with promoting otherwise beneficial practices like carbon farming.
Still, SMEs in the food processing sector, let alone operators in agricultural trading who are responsible for the functioning of complicated worldwide logistics operations, face severe funding constraints when it comes to green investments. This is evident from the fact that 24% of the agri-food sector's funding deficit relates to green investment proposals by otherwise financially viable companies. That is why we propose a new, grassroots model for agricultural financing, filling the gaps left by the customary banking sector, which we detail in our latest special edition.
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.