Olive Oil Market Digest w48

Weekly Olive Oil Market Updates

What are the current price updates?

The Union of Olive Oil-Producing Municipalities of Crete has released their latest update on olive oil prices in Greece and abroad, based on responses from businesses in the industry.

Based on the above data, it is evident that the increase in commercial transactions for Extra Virgin Olive Oil (EVOO) that began two weeks ago is still continuing, which is also causing an increase in the prices of oil mills. Regarding the other two major olive oil producers in Europe, the data shows the following:

To better understand the factors and interdependencies driving the olive oil market, included below are the price indexes for Virgin and Lampante olive oil in  Greece, Spain, and Italy.

As expected from the production forecasts we have shared and discussed on a frequent basis, the big drop in production in Italy and the subsequent scarcity of all types of olive oil there has made its domestic production an expensive option in the international markets. This is evident not just from EVOO prices at origin, but also from the Virgin Olive Oil and Lampante prices.

Spanish Olive Oil Market Analysis

According to an analysis released by Greek authorities in Madrid, there is a correlation between Spain's domestic olive oil market and its relation to the Greek market. The results of the analysis confirm the predictions we made earlier.

In detail, even though Extra Virgin Olive Oil (EVOO) is a staple in Spanish dietary habits, the high retail prices have led consumers to opt for EVOO alternatives, such as various seed oils. This has resulted in decreased consumption levels, which has led to an increase in the availability of EVOO in the market.

On the international trade frontier, the report shows that Greek EVOO exports to Spain have been continuously increasing in the last few years, with volumes reaching over 96 million euros this year alone. This growth can be attributed to the high production levels in Greece and the competitive prices offered to producers, which incentivize them to export their products. This development contributes more to the increase in the availability of EVOO in the domestic market.

Availability Changes and Price Trends

Two factors impact the availability of EVOO in a given market; consumption and international trade movements. These are just 2 of the factors contributing to the given variable, with the rest being the progress of the current crop and weather conditions.

Speaking of the latter, our agents in Spain have reported to us the poor yield of olives this year; instead of being comprised of about 21% of oil, this season's olives in Spain bearly reach 15%.

That is due to the prolonged heatwave that impacted olive-producing regions in October, following the heavy rains of September. 

The poor yield of the fruit is one of the main factors behind the current price trends being observed in Spain, with prices there constituting the basis of olive oil pricing in the rest of the world.

To help B2B olive oil buyers navigate through these adverse 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.