Olive Oil Market Digest w44

Weekly Olive Oil Market Updates

Olive Oil Demand in Spain and Greece Shows Τemporary Drop 

The recent rainfalls in Spain, especially in the olive oil-producing area of Andalucia, shifted the expectations of B2B buyers of olive oil towards better upcoming production volumes, and thus towards lower prices in the short run. Simple market economics have resulted in the temporary plummeting of their demand for olive oil.

In Greece, it seems like B2B buyers of olive oil have internalized the mass and continuous exposure of media frenzy towards ever-increasing prices in the market, which has made them doubt the resilience of consumer demand for the product. That has started to make them reluctant, limiting their moves in the market.

Price Updates

The data referenced below by the Union of Olive Oil-Producing Municipalities of Crete testify to the above, showing reduced prices at oil mills in Greece. Also, the number of B2B buyers who responded to this survey this week was far less than in previous weeks. In this environment of uncertainty, many players have stopped buying olive oil altogether.

Furthermore, the data show reduced EVOO wholesale prices in Andalucia, Spain, which are again understandable due to the sharp fall in demand.

The yearly Collection of Greek Table Olives has begun

The start was given by Agricultural Cooperatives in the rich olive groves region of Phthiotis, in Central Greece. In general, table olives production this year in Greece is significantly lower compared to last year, mainly due to the harsh weather conditions and the infestation of groves by plant diseases, such as dague. The general estimate by market participants is that prices will be at the level of 1.90 EUR per 200 pieces for medium-sized table olives.

According to the National Union of Table Olive Processors, Standardisers and Exporters, the drop in production reaches 90% in significant regions such as Halkidiki, making producers desperate and foretelling shortages in table olives this year. This becomes even worse if we take into account the confessions of many producers who say that they will choose to send their product to the oil mills to benefit from the exceptionally high current prices of olive oil.

Panhellenic Association of Agricultural Cooperatives and Organizations of Table Olives

Τhe fact that Greece is the second largest exporter of table olives in the world is incompatible with the persisting problems of the sector. These problems move in two dimensions; producers in Greece lack representation in the official bodies governing agricultural policy which crucially impacts their livelihood;  also, there is no national planning against the competition coming from other olive-producing countries as well as the rising problem of climate change and its agricultural implications.

To address these issues against the corresponding governmental agencies, and help navigate all farmers through the positive and ever-improving prospects of the Table Olives market, 11 large agricultural associations have moved towards the founding of a national representative body of all olive producers. This is a positive development, that, together with the improvement of market functionality that could come through implementing better marketing procedures from farmers and B2B buyers of table olives, will greatly benefit all market participants.

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.