Olive
Morocco
The EU Finances the Moroccan Olive Grove With USD 122.85M
Up to USD 160.35M is being provided by the European Union under the Economic Investment Plan to support Moroccan olive oil production. The agricultural and forestry industries of this country will be "supported in their ecological, inclusive, and innovative development," according to the EU. Compared to Spain, which produced 1.35MMT of olive oil in 2021–2022, Morocco produces 176K MT of olive oil on average and exports around 10% of that total.
Olive oil
Spain
52% Drop in Olive Oil Production in Catalonia, Spain
The harvest in 2023 will be 15K MT, which is 52% less than an average campaign and will result in a loss to the industry of USD 58.75M, according to reliable statistics from the cooperatives. These numbers are lower than those predicted for September 2022, just before the harvest began, when a decline to 19K MT was predicted, and they are even lower than those projected for January 31, when the harvest was nearing its conclusion, at 16K MT. In Catalonia, the average harvest is 31K MT. The 2018 crop will come in far second, with this being the lowest production in the previous 15 years.
Upward Trend in Olive Oil Prices
Spain is facing the worst harvest in the last 10/15 years, with olive oil production well below the 700K MT measured at the start of the campaign. A deficit that increases concern in the olive oil market as a whole at its origin. There will not be enough oil to meet the demand, which will lead to a drastic reduction in the oil offered and consequently greater tension in prices that generalized rises in the short and medium term. In W7, the prices that are offered for very small quantities move with increases between USD 213.65-320.48. For lampante oils at USD 5127.65-5181.06/MT and USD 5341.30-5448.13/MT for virgin oils. The extra virgin category is the most sustained one, with prices in the high band between USD 6.20-6.41/kg.
Italy
Olive Oil, Production in Italy in Structural Decline
Between 2020 and 2022, Italy produced 300K MT or less of olive oil. Less than two hectares of olive groves are found on 42% of Italian olive farms. Italy is the top consumer in the world with 8 kg of per capita consumption and 486K MT in 2022/2023. It is also the second-largest exporter, with 343K MT valued at USD 1.60B in 2021, trailing only unchallenged leader Spain. Exports of extra virgin olive oil, which have increased more in terms of values than volumes, are concentrated in Europe and North America, but a sizeable portion also goes to Eastern nations.
The Unstoppable Decline of Italian Extra Virgin Olive Oil, Last for Investments and Trade
More olive farms are still in operation in Italy than those that produce fruit, cereals, and wine. However, despite this sizeable number, the production of olive oil in Italy is steadily declining. It has decreased by almost half since 2010, from 500K MT to the 270K MT anticipated for the 2022/23 campaign. Above all, this is because only 42% of Italian businesses have olive groves larger than two hectares, which means that just under half of the olive-growing businesses are focused on hobby production or production intended only for self-consumption. Only 2.5% of Italian companies have more than 50 hectares, compared to 7.5% in Spain.
Uruguay
Officials in Uruguay Expect Another Bumper Harvest
The International Olive Council reported that South America’s smallest olive oil-producing country yielded 2K MT in the 2021/22 crop year, slightly below the record-high 2.5K MT of the 2019/20 crop year. With the rain that Uruguay has received, the condition of the olive groves has improved. Production has now begun to consistently outpace the country's consumption, which has been stable at between 1.5-2K MT annually. According to the ministry, locally produced olive oil has begun to displace imports in dining establishments and on grocery store shelves.