World production of olive oil will register a third year of decline

The United States Department of Agriculture (Usda) has predicted a global olive oil production of 3.03 million tons for the 2020/21 season, which is the same as the previous estimate and a decrease from the previous season's 3.12 million tons. The European Union (EU) is the world's leading producer, accounting for 70% of the world's olive groves. The Usda anticipates a rise in the EU's production to 2.05 million tons for the 2020/21 campaign, but it is expected to remain low, leading to a third consecutive year of decreased global production. However, this decrease will be offset by growth in North African and Middle Eastern countries. High global stocks generated by strong EU production in the 2018/19 season are expected to decline in 2020/21 due to increased consumption. Olive oil prices are predicted to recover slightly in 2020/21 after falling since 2018. The Usda also forecasts a global production of 208.63 million tons of all edible vegetable oils, an increase from the previous 2019/20 campaign, led by palm oil.