Weekly Olive Oil Market Updates
Following last week's market movements, prices continue to decrease, and transactions are limited. Wikifarmer's transactions offer invaluable insights, along with crucial information about Mediterranean market dynamics from our field experts., supported by data from organizations such as the Union of Olive Oil-Producing Municipalities of Crete, PoolRed, and Ismea Mercati.
The Spanish olive oil market is experiencing limited transactions as packers are holding off on purchases, likely due to substantial stock levels or anticipation of the new crop and lower prices. This inactivity is driving prices downward. Farmers are content with the consistently high output despite the scarcity of extra virgin olive oil. With four months remaining until the next crop season, packers aim to clear their warehouses of stock. Few transactions are occurring at low prices, as the forthcoming crop is reversing the previous upward price trend. Farmers are looking to sell their remaining stock before prices fall significantly. The future price movement remains uncertain.
In a recent development concerning olive oil VAT regulations in Spain, the Council of Ministers has approved a fluctuating VAT rate for the product, starting with a 0% rate from July 1 to September 30, aimed at aligning with neighboring countries like Italy. However, this will transition to 2% from October 1 to December 31 and escalate to 4% from January 1 onwards, intended to make olive oil more accessible. This decision, although signaling governmental recognition of olive oil as a basic necessity, poses challenges for commercial distribution due to administrative complexities and potential impacts on promotional strategies within the industry.
The Greek market mirrors this situation with low operational activity and declining prices. Although high-quality olive oil is available, packers are making incremental purchases. Producers are trying to maintain prices to sell their stocks. In Italy, extra virgin olive oil (EVOO) is being offered at high prices with limited availability. The upcoming crop is expected to be smaller than both the previous harvest and initial forecasts. Italian buyers are seeking offers and purchasing in truckload quantities, resulting in limited transactions. This contributes to uncertainty regarding the demand from importers and large organized distribution (GDO)
In the first quarter of 2024, EU exports of olives and olive oil surged in value by 51% to €1,827 million due to rising prices, despite a slight decrease in volume, according to the European Commission's latest agri-food trade report. European imports of these products also saw a significant increase, reaching €526 million, a 160% rise compared to the same period last year. In 2023, EU exports of olives and olive oil amounted to €5,113 million, a 2% increase from 2022, while imports rose by 1% to €1,227 million. The EU agri-food trade surplus in March 2024 was €6.7 billion, with a 4% month-on-month rise in exports to €20.1 billion. The UK was the leading destination, while exports to the US grew by 6%, and China remained the third-largest destination despite a 12% decrease in value. EU imports were €13.5 billion in March, slightly up by 2% from the previous month but 10% lower year-on-year, mainly due to reduced volumes, with Brazil, the UK, and Ukraine being the main import sources.
Olive Pomace oil as a fat substitute in the food industry
As we have mentioned, consumers are turning to healthier options in their diet by choosing olive oil instead of saturated fats. This trend has prompted research into the effectiveness of olive oil products as substitutes for common saturated fats. In particular, researchers from the Institute of Food and Nutrition Science and Technology (ICTAN-CSIC) have successfully demonstrated the suitability of Olive Pomace Oil (OPO) as a substitute for saturated fats commonly used in pastry production. Their study, detailed across three articles in Foods magazine, focused on formulating margarines with varying proportions of OPO and testing them in puff pastry production. The research revealed that the margarines prepared with OPO exhibited comparable plasticity, texture, thermal behavior, structure, and sensory attributes to those made with traditional butters and fatty preparations. Importantly, puff pastries made with these OPO-based margarines showed excellent baking performance and were indistinguishable in sensory quality from pastries made with commercial butter, despite containing 37% less saturated fatty acids, thus offering a healthier option for consumers.
These findings build on previous studies exploring OPO's applications in baking, highlighting its resilience to oxidative degradation and its potential to enhance the nutritional profile of baked goods. This research efforts underscore OPO's versatility beyond frying, emphasizing its role in promoting healthier dietary choices. Future directions include scaling up production to optimize margarine crystallization processes, promising broader implications for the food industry seeking healthier fat alternatives in pastry and baking applications.
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.