Weekly Olive Oil Market Updates
Price Updates
We've gathered data from recent olive oil transactions on the Wikifarmer Marketplace, as well as insights shared by reputable sources like the Union of Olive Oil-Producing Municipalities of Crete, PoolRed, and Ismea Mercati. This enriched information, combined with insights from our experts, has enabled us to track the variations in average olive oil prices across major olive oil-producing countries in the EU. Our analysis is guided by specific acidity profiles: 0.5 for Extra Virgin Olive Oil (EVOO), 1.2 for virgin olive oil, and 5 for lampante olive oil.
As mentioned in our previous Monthly Olive Oil report, recent rainfall in Spain has alleviated concerns of drought in olive oil groves, indicating a potentially improved crop for the following year. Moreover, the necessity for farmers to sell off their stocks has resulted in reduced prices across the EVOO, Virgin, and Lampante markets following the initial high prices in the first months of 2023/24. Elevated consumption levels, particularly in the EVOO category, have driven pricing concerns amid fears of potential shortages.
Following the release of AICA's monthly report on April 12th, a slight decrease in consumption was noted, possibly attributed to the Easter Holidays or concerns regarding EVOO scarcity. Prices have risen as anticipated, albeit with a rapid escalation. It is probable that due to the limited availability of Extra Virgin Olive Oil, prices will remain at elevated levels until the end of the year.
In Greece, the situation seems to be continuing its downward trend from previous weeks, contrasting with the Spanish market's upward trajectory. Anticipations suggest an improved harvest with increased volumes of olive oil expected next year. However, pricing is projected to escalate as Orthodox Easter approaches, prompting transactions to be finalized beforehand.
The crop has surpassed this year's production estimates in both Spain and Italy. Furthermore, Italian prices continue to remain at higher levels compared to other Mediterranean counterparts, albeit showing a slight and steady decrease. While this year's crop was better than the previous year, it still remained limited in quantity. Additionally, our registered suppliers indicate that many olive oil producers from Tunisia are offering volumes at lower prices compared to their European counterparts.
EU establishing Unfair Commercial Practices Directive
The Olive Oil Sector is characterized by numerous small cooperatives and farmers across its supply chain, which grapple with various challenges in trading activities. The European Commission has recently issued a comprehensive report on implementing the Unfair Commercial Practices Directive (UCD) within the EU's food supply chain. This report fulfills a commitment by the Commission to strengthen the positions of farmers in this chain, highlighting both advancements and persisting challenges.
Enacted in 2019, the UTP Directive aims to curtail 16 commercial practices that could harm vulnerable actors in the chain, particularly farmers and small suppliers. Essential objectives of the Common Agricultural Policy (CAP) include bolstering farmers' positions in the food supply chain, augmenting their incomes, and ensuring fair remuneration.
Most Member States have now adopted heightened protections, with enforcement authorities designated across the EU. The report reveals that approximately 1,500 investigations into unfair business practices were launched in 2023, resulting in fines for about 17% of cases. Delayed payments for agricultural and food products emerged as the most prevalent malpractice, followed by payments unrelated to specific transactions.
Nevertheless, the report underscores areas necessitating improvement, including limited awareness of EU regulations in this sphere and insufficient familiarity with national law enforcement entities. To tackle these challenges, the European Commission is instituting additional measures, including proposed regulations on cross-border application of unfair trade practices and the establishment of the EU Agri-Food Chain Observatory (AFCO) to enhance transparency in the supply chain.
Through Wikifarmer Academy, we equip olive oil producers with the knowledge and skills necessary to effectively produce and market their products, thereby reducing the likelihood of encountering unfair practices. This initiative plays a pivotal role in fostering a more sustainable and democratic agricultural sector.
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.