Weekly Olive Oil Market Updates
With five months remaining until the next crop season, prices are generally recovering, and the issue of olive oil storage is becoming increasingly prominent. To gain a better understanding of this week's market trends, insights from our field experts, Wikifarmer transactions, and reliable sources such as the Union of Olive Oil-Producing Municipalities of Crete, PoolRed, and Ismea Mercati, have provided valuable insights.
The olive oil sector is facing significant challenges regarding availability and quality. Our experts highlight that high-quality Extra Virgin Olive Oil (EVOO) is hard to find, and transactions in the sector are quite limited. Spain remains the primary supply source for the market; however, packers are waiting for the next crop and are not moving to large-volume purchases. They continue only to buy what they can sell without the risk of overstocking.
In Italy, prices remain high with no particularly strong demand. However, there is a growing shift towards Spanish offers instead of Greek ones due to their lower prices. In Greece, the current market situation is stable with a general scarcity of products, and Crete holds the majority of available quantities. Lakonia has the highest prices, particularly for PDO EVOO from Sitia. Overall, the market is showing some activity, but it is not significantly robust.
According to the EC's analysis, the global production of olive oil reached 2,511 thousand tons, with Mediterranean countries contributing 1,510 thousand tons and third countries like Turkey, Tunisia, Morocco, and Syria adding about 1,001 thousand tons. Despite the low production, exports outside the EU dropped by 12.8% to 560,000 tons due to reduced availability in key producing countries, while EU imports surged by 28.8% to 200,000 tons. European consumption of olive oil stood at 1,200,000 tons by May 31, similar to the previous campaign's 1,226,000 tons, while global consumption was estimated at 2,800,000 tons, below the five-year average of 3,200,000 tons.
Prices for olive oil have significantly increased across Mediterranean countries. Greece saw the highest rise in extra virgin olive oil prices, increasing by 58% to €7.94/kg, followed by Italy with a 54% rise to €9.43/kg, and Spain with a 44% rise to €7.64/kg. In the virgin olive oil category, Italy experienced the highest price hike of 60% to €8/kg, with Greece and Spain following with increases of 35% and 39% to €6.97/kg and €6.42/kg, respectively.
As our experts have highlighted, the general scarcity of EVOO has led other oil categories resulting from olives pomace, such as pomace olive oil, to play a key role in the olive oil market. According to the latest MAPA foreign trade bulletin for the current olive pomace oil campaign (October 2023 to March 2024), Spain's exports have seen significant growth. The exported volume reached 54,316 tons, marking a 13% increase compared to the previous campaign, although this represents a 2% decrease compared to the average of the last four campaigns. The export value surged to 205 million euros, a 31% rise from last year's period and a remarkable 107% increase from the average of the previous four campaigns. Notably, Italy and the United States were key destinations, with exports to Italy increasing by 57% to 12,256 tons, making it Spain's primary trading partner at 22.6% of the total exported volume, and exports to the U.S. rising by 47% to 7,072 tons. Conversely, exports to Portugal and Saudi Arabia saw declines of 35% and 23%, respectively.
In terms of imports, there has been a notable increase in value, reaching 93 million euros, which is 10% higher than the previous campaign and 97% above the average of the last four campaigns. However, the volume of imports slightly decreased by 2%, totaling 38,795 tons compared to 39,743 tons in the previous campaign. This data underscores the robust demand and rising value of olive pomace oil in the global market, highlighting Spain's strong export performance and the shifting dynamics in key markets. The overall trend indicates a growing unit value of exports, exceeding the last campaign by 97% and the four-year average by 110%, reflecting the high demand and price increases for this commodity.
How can the anti-greenwashing law benefit consumers and companies?
As we have mentioned in previous bulletin, sustainability in the food supply chain is of great importance, including the limitation of unfair practices involving producers, companies, and consumers. The upcoming anti-greenwashing regulation promises significant benefits for both consumers and businesses by providing reliable, verifiable, and accessible environmental information on consumer goods. This measure aims to promote a level playing field, strengthen the credibility of green claims, and increase the competitiveness of operators who enhance the environmental sustainability of their products. Transparency and competitiveness will be bolstered by this regulation, reducing the risk of greenwashing and unfair competition.
The proposal for a directive from the European Parliament and Council focuses on three key objectives: increasing environmental protection and accelerating the transition to a circular economy, protecting consumers and companies against ecological money laundering, and improving legal certainty and equal conditions in the internal market. It introduces minimum requirements for justifying and communicating environmental claims, subject to third-party verification, with performance indicators to ensure reliability. The European Parliament approved its position in the first reading on March 12, 2024, with the next step awaiting the Council's approval, likely after the upcoming European Parliament elections. At Wikifarmer, we aim to contribute to these goals by providing transparency and traceability of our products and requiring the same from our suppliers. Additionally, by participating in events and hosting webinars that promote sustainable practices in the agri-food sector, we are helping to eliminate unfair practices that affect our customers.
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.