Weekly Olive Oil Market Updates
The European olive oil market is experiencing limited activity, with prices dropping significantly and high-quality EVOO becoming increasingly scarce. According to our experts at Wikifarmer, premium olive oil is in demand. We have gathered market price data from the Union of Olive Oil-Producing Municipalities of Crete in Greece, PoolRed in Spain, and Ismea Mercati in Italy.
The olive oil market has remained under low activity recently this week, with declining prices and lower qualities. Buyers need help to source good quality olive oil, which is also very expensive, resulting in a bifurcated market trend. As we approach August, when the market traditionally slows down due to holidays and the end of the olive oil sector's market year, cooperatives seem to be keen to sell off remaining stocks to prepare their tanks for the next crop, further driving down prices.
In Italy, the market relies on Spanish olive oil, also experiencing falling prices. Portugal's olive oil market mirrors Spain's, with limited stocks and a push to empty tanks for cleaning before the new season. Similarly, the Greek market is following the same trend, with Peloponnesian olive oil prices dropping. However, Cretan olive oil is currently out of the market due to its high cost, with expectations that prices will rise again in September when the market reopens.
As we mentioned in our previous digest, this year's olive oil crop has led to significant price fluctuations. Many consumers continue to buy olive oil despite the high prices, but a notable portion of the market has turned to vegetable oil alternatives, such as sunflower oil. The Ministry of Agriculture, Fisheries, and Food of Spain has reported that for the first time, Spanish households have increased their consumption of sunflower oil compared to olive oil, despite the Mediterranean diet being a key part of their culture.
According to our suppliers, the upcoming sunflower oil crops have been significantly impacted by climate change. EU sunflower production has suffered due to the recent heatwave that has swept through the region of the main European-producing countries over the past few weeks. Most affected crops are located in Eastern European countries, also the leading sunflower oil producers.
Typically, sunflower seed harvesting occurs from the end of August to the beginning of September once the flowers have dried. However, the high temperatures have led to an earlier harvest that has already begun in some regions. As a result, oil yields are lower than expected, and prices have increased by 20%.