Olive Oil Market Digest w42

Weekly Olive Oil Market Updates

First Commercial Transaction in Greece Doubles in Price 

An agricultural cooperative in the Peloponnese region of Greece kick-started the commercial season, selling its high-quality EVOO at 9.25€/L. That is more than double the price of last year's first transaction, at 4.20€/L. However, this hike is also accredited to the premium character of locally produced EVOO, which is highly sought-after by bottling businesses in Italy and Europe.

Fresh Analysis of the Edible Oils & Fats Segment

Statista Market Insights has published a new report on the Edible Oils and Fats market sector. In a data-backed manner, its results recognize two more reasons behind the market’s rally, apart from the obvious ones related to high product demand and production decline. Those are the increasing demand for processed food (which, of course, uses oils as raw material), as well as the growing keenness of consumers towards a healthier way of living, which constitutes a key driver in the increasing demand for nutritious high-oleic EVOO.

These results show the ever-growing opportunities of olive oil producers on the one hand, and packaged products wholesalers and food production units on the other; by structuring their products portfolio following the medium- and long-term market trends and by implementing proper positioning, all parties can maximise their profit outlook in a more rigid way than just blindly following transient price moves.  

Price Updates 

Below we are referencing data from the Union of Olive Oil-Producing Municipalities of Crete. They perform a weekly survey in which they gather data on prices at the Oil Mill for different areas of Crete. They also monitor wholesale prices of olive oil in other countries. In the chart below we have taken the average price for all agricultural cooperatives that answered the survey in the last 4 weeks: 

As a reference, we are also referencing data on the mean wholesale price of EVOO in the region of Andalucia, Spain, which is the world capital of olive oil production. Production volumes there are still the highest, no matter the negative impact of last spring's droughts, and that is evident in the relatively moderate (as of under the current extreme conditions) prices.

Adverse Market Conditions Lead Desperate Operators to Extreme Measures

Apart from the increased fraud cases we pondered in our previous newsletter, the current adverse market conditions in the olive oil market have made some players move on even more desperate grounds; thefts of olive oil stocks from oil mills are becoming increasingly frequent in Spain. In light of the uncertain prospects of the sector, these moves destroy not only their perpetrators but also established family businesses that carry with them the history and livelihood of many local producers. 

An even more concerning factor is that some governments respond to these conditions not by enhancing their trade with other olive oil-producing countries but by turning to protectionism like Turkey did by banning olive oil exports for three months. In the current nightmarish geopolitical framework, these developments cause only fears for the political and economic implications that distorting the already problematic market incentives can have for producers and B2B buyers of olive oil.

To help B2B olive oil buyers navigate through these conditions, 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.