Weekly Olive Oil Market Updates
The olive oil market in Spain is divided between high-quality and low-quality offerings. Demand for extra virgin olive oil (EVOO) has exceeded the available supply, leading to a decrease in prices. However, active production of fresh olive oil in the Jaén region is expected to drive prices downward again. Continued rainfall in the country has disrupted harvesting activities.
In Tunisia, the market is increasingly aggressive, with producers eager to sell and the government implementing private storage strategies. In Turkey, the situation mirrors Tunisia's trend, with producers also keen to sell but maintaining higher prices and resisting price decreases. Concerns about the quality of Turkish olive oil have made buyers more hesitant.
Italy faces challenges in its olive oil market due to declining production volumes and falling prices, creating added difficulties for producers. Although price reductions in Italy have been less severe than other producing countries like Spain, Greece, and Tunisia, global competition and lower international prices are increasing pressure on the market. The lampante oil segment has also seen notable price drops, reflecting broader market trends. Efforts to stabilize prices and address reduced harvests are essential to mitigate the strain on Italy’s olive oil industry.
Regarding the Greek market, rainfall in Kalamata has halted production. Prices, which had been decreasing, have now stabilized and are showing a slight increase. Many producers are dissatisfied with the prices offered by the olive oil mills. As a result, some are holding onto their stock, limiting availability, as olive mills have reduced their purchasing activities.
As the holiday season approaches, commercial activity in the sector is expected to slow down while harvesting and production will reach their peak. This increased availability may offer a more optimistic outlook at the start of the new year.
European's olive oil bright future of exports
As Wikifarmer's experts are highlighting, the future of the olive oil sector in the European Union appears strong, with significant growth driven by rising prices and increasing demand both domestically and internationally. In 2024, EU olive oil exports surged by 58%, adding €1.8 billion in value, solidifying the EU's position as a leading exporter to key markets like the United States and the United Kingdom. Simultaneously, imports of olive oil into the EU, particularly from Tunisia, rose sharply due to increased volumes and prices, reflecting robust domestic demand. This dynamic, coupled with olive oil’s prominence in the EU's agri-food trade surplus, positions the sector as a cornerstone of the EU's global trade success, signaling continued growth and resilience.
Maintaining quality and consumer trust is crucial for bottling companies in the competitive olive oil market. Clear and accurate labeling is essential, ensuring the product's origin is explicitly stated. Terms like "EU and non-EU" might create confusion; however, DOP and IGP certifications distinguish the brand. Including the harvest year on labels provides transparency about the oil’s freshness and ensures consumers understand its single-year sourcing. Proper packaging is equally essential; using light-resistant, airtight bottles helps preserve the oil’s quality by protecting it from heat, light, and oxygen. In the hospitality sector, it is mandatory to supply extra virgin olive oil in tamper-proof, non-refillable bottles with appropriate labeling to meet legal standards. Highlighting oils with fresh, vegetal aromas and a balanced bitter-spicy flavor profile ensures they appeal to quality-focused consumers.
Boosting olive oil quality through innovation
A recent study highlights a groundbreaking way to ensure better quality in extra virgin olive oil (EVOO). Using advanced DNA-based methods, researchers found an effective way to detect fungal contamination, especially from Aspergillus spp., which can harm the taste and safety of olive oil. This technique, called LAMP, proved to be the fastest and most accurate, making it ideal for quick, on-site testing during production.
This innovation offers significant advantages for olive oil suppliers. With tools like LAMP, producers can check for contamination right at the production site, ensuring higher-quality oils and preventing issues before they reach consumers. For businesses, this means a stronger reputation for quality and safer products that meet high standards, which can increase customer trust and demand. Especially in regions like Calabria, a major olive oil producer, these methods can help maintain the region's reputation for premium products and support smoother production and sales. This new approach could set a fresh standard for the olive oil industry, helping the supplier side to offer high-quality products.
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