1. Weekly News

Spain

Spain’s Olive Oil Prices Decreased WoW in W37

In W37, Spain's olive oil market operations continued fluidly, although supply remained tight. According to data company POOLred, the price of extra virgin olive oil at the origin experienced a 2.7% week-on-week (WoW) decrease, averaging USD 7,936 (EUR 7,123) per metric ton (mt), compared to USD 8,159/mt (EUR 7,323/mt) the previous week. Virgin olive oil prices also declined 0.35% WoW , with prices averaging USD 7,684/mt (EUR 6,896/mt), down from USD 7,709/mt (EUR 6,919/mt).

Türkiye

Türkiye Removes Price Stabilization Fund Deduction for Olive Oil Exports

The Ministry of Trade in Türkiye has announced the removal of the Price Stabilization Fund (PSF) deduction for bulk and barreled olive oil exports. This decision aims to help Turkish olive oil exporters better compete in the export market. The deduction was initially introduced during the 2022/23 season due to reduced olive oil production in the European Union (EU) driven by drought. With expectations of the traditional exporting countries's above-average yields in the 2023/24 and 2024/25 seasons, the Ministry removed the deduction to help exporters maintain current markets and expand into new ones.

Edremit Chamber of Commerce Launches Campaign Against Counterfeit Olive Oil

As the new olive harvest season begins in Edremit, Türkiye, the Edremit Chamber of Commerce launched a campaign to combat the sale of counterfeit olive oil. The Edremit Chamber of Commerce president highlighted the widespread issue of fake and adulterated olive oils sold at low prices on e-commerce platforms and social media, often falsely labeled as 'Edremit Olive Oil.' In response, the Chamber has initiated legal action against nearly 30 companies and alerted the Ministry of Commerce. Citizens are urged to be vigilant and choose products with geographical indications to ensure they purchase authentic Edremit Olive Oil.

China

Chinese Delegation Strengthens Cooperation with IOC

A delegation from China visited the International Olive Council (IOC) in Madrid to strengthen collaboration in the olive oil sector. During the visit, the delegation expressed China's interest in joining the IOC. China accounts for 4% of global olive oil imports, reflecting the growing interest of Chinese consumers in the health benefits of olive oil. In addition, China has 120 thousand hectares (ha) of olive trees, with an annual production of 11 thousand mt of olive oil. This meeting reinforces the collaboration between China and the IOC, pointing to a promising future for the olive oil market in China.

Chile

Chile Signs Third Clean Production Agreement to Combat Climate Change

Chile's olive oil industry has entered its third Clean Production Agreement (CPA) with the Adaptive Silviculture for Climate Change (ASCC) and the Association of Olive Oil Producers (ChileOliva) to address the pressing challenges posed by climate change. This agreement focuses on regenerative agriculture and sustainable development, particularly mitigating the effects of water scarcity, frost, forest fires, and unpredictable weather patterns. The initiative seeks to promote the efficient use of natural resources, circular waste management, and biodiversity preservation. By involving all players in the olive oil sector across various regions, the agreement aims to enhance sustainability and create new market opportunities.

2. Weekly Pricing

Weekly Olive Oil Pricing Important Exporters (USD/kg)

Yearly Change in Olive Oil Pricing Important Exporters (W37 2023 to W37 2024)

Spain

In W37, Spain’s olive oil prices rose by 2.73% WoW to USD 8.28 per kilogram (kg). The month-on-month (MoM) prices increased by 2.86%, but the year-on-year (YoY) prices dropped by 8.51%. Tight supplies due to ongoing droughts and low yields in major olive-growing regions like Extremadura drove the price increase. In addition, steady demand from export markets supported this short-term price recovery. However, the long-term YoY drop reflects the gradual global supply recovery as the market adjusts to shortages from preceding years.

Italy

Italy's olive oil prices saw a modest 0.98% WoW increase in W37, reaching USD 10.31/kg. While the MoM price saw a slight 0.39% decline, the YoY prices increased by 1.78%. Italy's prices are influenced by high demand and constrained supply due to severe droughts, particularly in Sicily, where production is expected to decline by up to 60% YoY. With olive oil inventory falling and supply shortages looming, Italy continues to face pressure to meet its domestic and international demand, driving prices upward.

Tunisia

Tunisia experienced a 0.96% WoW increase in olive oil prices in W37, with prices reaching USD 8.39/kg. Tunisia's olive oil price increased due to stable demand from domestic and international markets and production challenges owing to drought conditions. As a result, the government has been expanding its irrigated olive groves each year to ensure consistent production. The Ministry of Agriculture in Tunisia has also introduced programs to enhance productivity and build resilience against adverse climatic conditions, which has led to stable output in the country.

3.Actionable Recommendations

Enhance Water Management and Irrigation Systems

Given Spain's persistent droughts and tight olive oil supplies, olive oil producers should invest in advanced water management and irrigation technologies. This includes implementing drip irrigation and rainwater harvesting systems in regions like Extremadura, where water scarcity severely impacts yields. Collaborating with research institutions to develop drought-resistant olive tree varieties will also help mitigate future production risks. Producers should consider forming cooperatives to share the cost of new infrastructure, reducing individual financial burdens.

Diversify Supply Chains to Offset Production Declines

In response to the expected production decline due to severe droughts, Italian olive oil producers should diversify their supply chains by collaborating with producers from countries experiencing more favorable weather conditions, such as Tunisia or Greece. Importing olive oil from these regions can help meet domestic demand and maintain export volumes.

Expand Irrigated Olive Groves and Strengthen Climate Resilience

Tunisia should further expand its irrigated olive groves through government and private sector investments to ensure the continued stability of olive oil production amid ongoing drought challenges. The Ministry of Agriculture can incentivize farmers to adopt climate-smart agricultural practices, such as agroforestry and water-efficient techniques. In addition, Tunisia can boost productivity by increasing access to drought-resistant olive varieties and enhancing the technical capacity of local farmers through training programs.

Sources: Tridge, Agropopular, Iha, Sondakika, Oleorevista, OliMerca