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Global rise in olive oil prices; small French production remains sheltered

Published Aug 23, 2024

Tridge summary

The article provides an overview of the global olive oil crisis, with a particular focus on the market dynamics and challenges faced by different countries. It starts by noting that the crisis has had minimal impact on the French sector, which is insulated by its emphasis on quality and small production volumes. The main issue is the surge in prices for everyday olive oil, attributed to poor harvests in Spain, the industry leader. The International Olive Council forecasts a continued decline in global production and price increases, leading consumers to seek alternatives like other oilseeds. Despite these challenges, France, which imports 95% of its olive oil, mostly from Spain, has seen growing sales and consumer interest in its quality olive oils, many of which are labeled with Protected Designation of Origin (PDO). The article also highlights the potential of less strictly regulated French olive oils and the opportunities for blends of Spanish and French varieties. Yves Guillaumin, president of France Olive, cautions that the high cost of olive oil is a significant challenge for producers and underscores the need for finding consumers willing to pay the premium price.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The French sector is little affected by this crisis. Indeed, French olive oils are produced in small quantities, unlike the giants that occupy the podium: Spain, Italy, Greece. French oils occupy a niche sector focused solely on quality and tasting. It is in fact the sector of everyday olive oil that is particularly affected by the crisis. Its price is enough to discourage more than one customer. Over the past 2 years, it has doubled. And for good reason, Spain, the world's leading producer providing nearly 50% of the supply, is experiencing poor harvests. As the market leader, it is the country that sets global prices. According to the latest World Conference on Olive Oil held in Madrid last June by the International Olive Council (IOC), world production fell from 3.42 million tonnes in 2021-2022 to 2.57 million tonnes in 2022-2023. The IOC predicts a further drop in production in 2023-2024 to 2.41 million tonnes. Another example given is the price of Spanish extra virgin olive ...
Source: Pleinchamp
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