W1: Weekly Olive & Olive Oil Update
Olive
Spain
We Do Not Expect Miracles in Olive Oil
Little to nothing has changed from the initial predictions issued by the Junta de Andalucía and the Ministry of Agriculture. The harvest is very brief and has many supply problems. Three months into the olive campaign in Spain. In this scenario, with only two months left in the harvest period, it is possible to determine the campaign's final statistics for 2022/23. The primary issue is that we must adjust the outputs to market availability, and the only workable formula is the price, causing the demand to slow down. Production is currently below 49%, compared to the last campaign.
An innovative project including traceability in the conventional olive grove will receive funding from the government worth around USD 532,125 from the Ministry of Agriculture has been announced by Catalina Madueo, the sub-delegate of the Spanish government in Jaén. This plan aims to document every step of the extra virgin olive oil production process so that consumers may be assured of the product's provenance and quality, which is essential for valuing our oil's superiority above that of other countries.
Italy
Tuscany Olive Harvest Rebounds With Better-Than-Expected Results
Drought conditions kept away pests, plants benefited from autumn rainfall, and now growers in the central Italian region are celebrating an olive oil production that is more than anticipated. The 2022/23 campaign has gotten off to a promising and consoling start, and in comparison to the previous campaign, it is predicted that the ultimate olive oil yield will rise by 15-20%. It is also said that the quality of the new olive oil produced in Tuscany is particularly high. The unusual presence of the olive fruit fly, whose reproduction had been hindered by the extended higher-than-average temperatures, is widely credited for this outcome.
2023 Is a Turning Point for Italian Olive Growing
2022, which is a critical year for Italian olive farming, is coming to a conclusion. Lower yields are expected for the 2022 campaign as a result of unfavourable weather, as well as a sector dealing with rising energy costs and supply issues, production issues, and the effects of the Russian-Ukrainian conflict. However, 2023 will mark a turning point for olive cultivation due to new initiatives aimed at the promotion and commercialization of extra virgin olive oil and a fair income for those who create and spread the culture of quality oil.
Olive Oil
Spain
More Tension Looms in the Olive Oil Market in W1
During W1 of January, still dominated by the New Year's and Epiphany festivities, the origin market for olive oil has acted calmly, with a minimal supply, particularly in the cooperative sector. Furthermore, lampante olive oil has a low demand with a price range of USD 5214.82-5268.04/MT.
The DOP Sierra Mágina in Spain Adjusts Its Harvest Downwards
The DOP Sierra Mágina has just updated their balances at the start of the campaign, in which it reported that the overall production would be somewhere around 50,000MT of olives, or 30% of what was harvested the previous year, which is less than previously anticipated. This is the smallest harvest collected in Mágina in recent years; to see similar figures, you have to go back to the 2012/13 campaign, when production was 53,000MT.
The Year Ends With a Record for the Sale of Olive Oil From Jaén in Spain
The year 2022 ends with a record for the commercialization of olive oil from Jaén, with 1.6 MMT sold at more than reasonable prices for the traditional olive grove. Since the production of olive oil is significantly lower than in 2021 due to the drought and the extreme spring temperatures, the olive oil sector has experienced an absolutely record-breaking marketing campaign that cannot be matched in 2023. A challenging year is coming to an end, but 2023 can bring important news for Jaen olive growers and producers during the first half of the year.
Olive Oil in Spain Is at Record Prices, but Without Reaching a Ceiling Yet
The average price of olive oil in a supermarket in 2023 could easily reach USD 7.45/litre and USD 6.39/litre in its country of origin. An exceptional period in the history of the olive oil industry is currently being experienced in Spain, where prices have never been so high for all the links in the chain. In the last week of December 2022, the price was above USD 5.32/litre for extra virgin, USD 5.22/litre for virgin, and USD 5.11/litre for lampante. On the other hand, according to calculations made by the Ministry of Agriculture in November, the average cost of virgin olive oil at its origin was USD 5.12/litre, which is a 51.5% increase YoY. And the prospects in the field do not, on the contrary, expect a price reduction.
Sales of Spanish Agri-Food Products Abroad Increased 16.6% YoY in the Period January-October 2022
Spanish agri-food exports as a whole reached USD 12.51B in the period from January to October 2022, a rise of 16% YoY. With USD 3B in sales, extra virgin olive oil continues to be the top-selling product in foreign markets. The majority of the remaining products on the list of the most exported goods are fruits and vegetables, with peppers accounting for USD 749.23M, tomatoes for USD 688.57M, and strawberries for USD 618.33M.
Poland
Olive Oil New Rules for Checking Compliance With Marketing Standards
The new regulations cover things such as confirming compliance with olive oil marketing standards, records kept by businesses that produce or store olive oil, and techniques for analysing olive oil's properties. The Commission Implementing Regulation (EU) 2022/2105 of July 29, 2022, which established procedures for analysing the properties of olive oil and rules for determining whether marketing standards for olive oil are in compliance, brought about the change in the regulations. The rule became effective on November 24, 2022.
Turkish
Support Call for Olive and Olive Oil Producers
For the last three years, a support premium of 15 cents/kg for olives and 80 cents/kg for olive oil has been paid. The Turks, who emphasise that the producer's back is bent by the extremely high input costs, the rise in diesel prices, and the rise in fertiliser prices, are asking for a revision to their support as 2022 has been the driest year in Europe in the last 500 years, which also affected Turkish producers.
Turkish Agricultural Exports Increased by 15.3% YoY in 2022
Turkey's agricultural exports increased by 15.3% YoY in 2022, reaching USD 34.25B, which is the highest value of all time. Compared to the previous year, in 2022, cereals, pulses, oil seeds and products increased by 26% to USD 11.5B, fruit and vegetable products increased by 25% to USD 2.5B, olive and olive oil increased by 61% to USD 500M while aquaculture and animal products increased by 20% to USD 4.1B. Last year was a tough year for food exports due to increased geopolitical risks and countries' restrictions on food exports. Therefore, Turkish food exporters took measures against these difficulties by expanding their markets with trade fairs and trade delegations.
Tunisia
Tunisia Increases Its Olive Oil Exports in 2022
The value of olive oil exports in November 2022 was USD 76.91M, a 42.1% increase YoY. In relation to how the current campaign is progressing, less olives and olive oil were produced in 2022 than in 2021. In particular, while national consumption does not surpass 35,000MT, olive oil production has decreased from 240,000MT in 2021 to 150,000MT in 2022. The numbers for global exports in 2022 show a total of 205,800MT in the 2021/22 campaign, a 2.5% decline from the 2020/21 season. These exports saw a value increase of 35.4% to USD 713.07M.
