The future of olive groves in the EU, in the hands of new production systems

Published Dec 16, 2024

Tridge summary

The European Union olive oil sector is expected to remain profitable if production systems are transformed to intensive and highly mechanized ones, says a report. The sector faces challenges such as unusual weather conditions, water scarcity, diseases, labor shortage, and rising production costs. However, consumption is expected to increase in Portugal and the rest of the EU. The trade position is projected to improve, with increases in net exports in Spain, Greece, and Portugal by 2035. Product differentiation could help mitigate price competition in the global market.

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Original content

Olimerca.- The future profitability of the EU olive oil sector depends on the successful transformation of production systems, i.e. from extensive plantations to intensive and highly mechanised plantations. This is revealed by the Report on medium-term prospects for agricultural markets and agricultural income in the European Union until 2035. It highlights that, for some time, the olive oil sector has been facing challenges such as unusual weather conditions and water scarcity and points out that investments are already being made in Spain and Portugal, such as the planting of olive groves in non-traditional areas. However, time is needed to reach its full potential. It adds that average annual production increases of around 1.2% and 1% are expected for Spain and Portugal, reflecting yield increases of 0.7% and 1.4% per year, respectively. ChallengesThe report also refers to other challenges facing the sector in the coming years, such as the impact of diseases, such as those ...

Source: OliMerca