Olive Oil Market Digest w49

Weekly Olive Oil Market Updates

Price Updates

On Wednesday, the Union of Olive Oil-Producing Municipalities of Crete released their more recent findings on olive oil prices at origin in Greece, based on the responses they got from the weekly survey they carry out. We combine this data with information from trusted sources from Spain and Italy, to form a fuller image of this week in the olive oil trade.

Greece
It is clear from the data above that the increased demand for Greek Extra Virgin Olive Oil, which is evident from its increased exports, continues to apply an upward push to its price.

Spain
Our agents in Spain report that the market is currently at a standstill, with commercial transactions being limited, allowing prices to decline. This stop in market movements gets more intense as the prospects for this year's production volumes continue to get adjusted downwards. Players in the Spanish market now estimate that the volumes will be even less than 700,000 tonnes, much less than the 750,000-800,000 officially forecasted in October. That is why oils of other origins, like Greece and Tunisia, are getting increasing traction.

Italy
The Greek authorities in Milan shared an Economic and Commercial newsletter on Monday, showcasing the established positive trend of prices for domestically produced olive oil. Prices in Italy tend to be higher than its main European counterparts in general, since most of domestic production is made of organic cultivations. As a result, even though the product's quality is high, every development that negatively affects production volumes (such as the spread of plant diseases or adverse meteorological phenomena) has a greater impact on Italian olive groves, since the available technical and chemical measures that can be applied are relatively limited.

Inspecting Virgin olive oil prices (at origin) for the three pre-mentioned countries, it is clear that Greece's dynamic has affected all types of olive oils, although Greek oils continue to be cheaper than other European ones. Similar movements have been observed for Lampante olive oil as well in all of the countries of interest.

Spanish Olive Oil Shortages Fuel Imports from Greece

An analysis of the Spanish olive oil market recently conducted by the Greek Office for Economic and Commercial Affairs in Madrid, shows that Greece exported 96.91 million euros worth of olive oil to Spain, to fill the domestic supply gap there. This is a record number, testifying to the adverse conditions in the Spanish market during the current season.

The only good news for Spain comes from rains; precipitation levels have returned to their normal for the season, so the drought evolution - and its implications to olive groves- is not as severe as it was in the last 2 years.

Mismatches in the International Role of Greek EVOO

Worldwide shortages for a second season have highlighted EVOO of Greek origin as a top choice, both in quality and financial terms. Greek EVOO makes for 10% of the EVOO that is traded internationally. However, this number is not compatible with its share in the market for branded olive oil, of which it comprises just 2-3%.

This is the result of the fact that most transactions in Greek EVOO refer to bulk products, leading to a significant loss of added value that would be a gain both for domestic producers as well as the country's trade balances. 

By following Italy's model, where there are numerous packaging and standardization units in its olive grove-rich regions, Greek olive oil producers could attach a unique identity to their product and distinguish it from that of other producers. 

This would increase the number of Greek offerings on shelves worldwide, promoting the Greek brand. However, ventures like the previous ones require significant investments and bear high risks. To mitigate this situation, producers could collectively discuss this prospect in their evolving unions and nationwide organizations. The goal should be to help guide the corresponding national authorities to take relevant action and facilitate this development. And that would benefit all parts of the domestic economy since the goal of correcting the country's trade balance is one of high strategic national significance.

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.