Market insights

Agricultural trade plays a crucial role in addressing potential food production shortages that may arise due to climate change or other factors. Ultimately, it contributes to the well-being of farmers, industries, and consumers. However, global agricultural markets have become increasingly volatile in recent years, directly impacting farmers and buyers throughout the food supply chain.

2022 and 2023 have been marked by constant turmoil in many agricultural product markets, especially for olive oil (abbr.: OO). The B2B OO market disruptions generated high uncertainty for its participants, especially regarding packaged products wholesalers and food production units (abbr.: FPUs) that use olive oil as a raw material.

When products are exported through maritime transportation, there are some international commerce terms that the two sides may choose to add to their contracts. These terms dictate which side is liable for the safety and the logistical procedures regarding the traded products, as well as for all costs that come with them, at each point in the supply chain. Two of the most widely used terms as such are CIF (which stands for “Cost, Insurance and Freight”) and FOB (“Free on Transportation”).

In agriculture, this year has been characterized by significant disruptions in fresh produce supply chains. These disturbances are mainly owed to unexpected meteorological phenomena and increases
in production costs.

What happened in 2022?