Olive Oil Market Digest w46

Weekly Olive Oil Market Updates

Price Updates

On Tuesday, the Union of Olive Oil-Producing Municipalities of Crete shared its latest update on the olive oil trade in Greece and abroad. The data shown there (taking into account the respondents of the Union's survey in Crete and other Greek regions) once again testify to the continuation of the negative trend of EVOO prices at origin in Greece. 

This development comes as the result of the withdrawal of B2B buyers from the market, because of their intense expectations of imminently falling prices due to the upcoming flooding of the market with this year's produce. At the same time, supply is significantly limited in most regions of the country.

A drop is also apparent in EVOO wholesale prices in the region of Andalucia in Spain, where the trading activity has hit a standstill:

As for Spanish prices at the oil mill, for Jaén in Andalucia, the last update we received mentions a mean price of about €7.14 for EVOO, slightly more competitive than the Greek counterpart.

The weather conditions that our agents on the field are observing in Spain prepare us for further decreases, not just at wholesale prices but also at prices at origin, since higher precipitation is linked to higher production yields, boosting expectations of lower future prices.  

Consumer Demand Resistance Breaks

At the start of the season, we shared data indicating a consistent demand for EVOO, despite the high retail prices of the product. However, Spanish consumers have now demonstrated that even for highly valued products, there is a limit to what they are willing to pay.

The Consumer Observatory of the University of Jaén reported from a recent research it conducted, that the demand for refined olive oils has dropped by about 10.2% in the last 9 months compared to the same period last year.

This development shows that the psychological barrier in the retail price for EVOO has been reached, so the market conditions and the decisions of market operators (for both demand and supply) will have to be readjusted to maximize their results in the new environment that is being shaped.

Official Forecasts for the EVOO production in Italy

ASSITOL, the Italian Association for the Olive Oil Industry, shared on Tuesday its first estimates on the production levels for Italian olive oil. They are compatible with our predictions and the predictions of others for the country; Although the South’s production has significantly improved, the central and northern regions have experienced a decline due to adverse weather conditions and plant diseases. Thus, aggregated production is going to be far less than its levels two years prior.

B2B buyers of olive oil face uncertainty due to heavy year-to-year fluctuations in production levels and reduced consumption levels, as confirmed by ASSITOL. Το maximize their long-term value, market operators should develop new sourcing strategies and processes to navigate through this uncertainty. 

That is to make sure that they can find the kind of product they need as raw material, at prices compatible with their budget constraints and with quality traits that fit their product profile.

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.