1. Weekly News

Brazil

Olive Oil Fraud Hits Record High in Brazil, with 112,300 L Seized in 2024

In 2024, olive oil emerged as Brazil's most fraudulent plant-based food product, with a record 112,300 liters (L) of counterfeit olive oil seized. The largest operation, Operação Getsêmani, confiscated over 104,300 L valued at USD 14.21 million (BRL 81 million). Fraudulent practices include adulterating olive oil with cheaper vegetable oils and mislabeling lower-grade oil as extra virgin. Brazil imports 99.5% of its olive oil, with many counterfeit products entering the market in original packaging. Despite efforts from the Brazilian government and the Brazilian Olive Growing Institute (Ibraoliva), more stringent inspections are needed. Rising olive oil prices, influenced by droughts in major producing countries like Spain and Portugal, have led to a 17.24% price increase in Brazil over the past year.

Brazilian Olive Oil Sector Reacts to Import Tax Exemption, Calls for Equal Treatment and Stricter Fraud Measures

The recent decision by the Foreign Trade Chamber (Camex) to exempt olive oil from import taxes has sparked reactions from the Brazilian olive oil sector. Ibraoliva’s president stated that while producers are not opposed to tax reductions, they seek equal treatment for Brazilian producers who face barriers in exporting to markets like Europe. Ibraoliva's president emphasized that reducing import tariffs could discourage domestic production, as imported olive oil benefits from lower taxes and minimal monitoring, while Brazilian olive oil faces high export taxes.

Ibraoliva is also focused on combating olive oil fraud in Brazil, specifically the mislabeling of virgin olive oil as extra virgin. The president warned that more than half of imported olive oils may be falsely labeled, with sensory defects hidden through poor storage or substandard production. Ibraoliva calls for stricter monitoring and analysis to address this issue and protect consumers’ health.

Chile

Chile-EU Interim Trade Agreement Boosts Olive Oil Exports and Market Opportunities in Europe

The interim free trade agreement between Chile and the European Union (EU) has eliminated tariffs for the year on the first 11,000 metric tons (mt) of Chilean olive oil exported to the 27-member bloc. This agreement, which will remain in effect until the adoption of a more comprehensive Advanced Framework Agreement (AFA), is expected to enhance the competitiveness of Chilean olive oil in Europe.

In 2023, Chile exported 17,502 mt of olive oil valued at USD 117 million – with the United States (US) and Brazil as the primary destinations. While most Chilean olive oil exported to Spain, Italy, and Portugal is sold in bulk for blending by large bottlers, the tariff removal opens new opportunities to market premium packaged olive oil to non-producing countries with high purchasing power, such as France, Germany, and Belgium.

Chilean producers, including Las Doscientos and Olivos Ruta del Sol, view the agreement as a chance to expand into the European high-end market. Meanwhile, the deal offers limited benefits to European olive oil exporters, as tariffs on their products were already phased out under a 2003 agreement.

Greece

AES Kalamata Holds Firm on Olive Oil Price as Italian Stocks Rise and Spanish Prices Remain Low

The Agricultural Olive Cooperative (AES) of Kalamata, Greece, did not finalize a commercial agreement to sell 25 mt of Kalamata Protected Designation of Origin (PDO) olive oil (harvest 2024/25, acidity 0.27). Prospective buyers failed to meet the cooperative's minimum price of USD 5.50 per kilogram (EUR 5.10/kg), which members set to secure sustainable income. This decision supports local producers amid concerns over low selling prices.

In Spain, lower production costs sustain reduced olive oil prices, with extra virgin olive oil averaging USD 4.26/kg (EUR 3.95/kg) from March 10 to 16. Conversely, Italy's olive oil prices remain high. In mid-Mar-25, extra virgin olive oil averaged USD 9.82/kg (EUR 9.10/kg) in Lecce, Brindisi, and Taranto, and USD 9.96/kg (EUR 9.23/kg) in Foggia, reflecting slight increases.

Italian olive oil stocks reached 157,472 mt by Feb-25, up from 146,471 mt in Dec-24. However, domestic olive oil supply dropped 37.7% year-on-year (YoY) to 89,307 mt. Imports of EU-origin olive oils, primarily from Greece and Spain, increased 31.2% to 53,059 mt by the end of Feb-25.

2. Weekly Pricing

Weekly Olive Oil Pricing Important Exporters (USD/kg)

Yearly Change in Olive Oil Pricing Important Exporters (W12 2024 to W12 2025) 

Italy

Italy's olive oil prices have risen to USD 10.21/kg in W12, reflecting a 2.92% increase week-on-week (WoW) but a 2.11% yearly decrease from USD 10.43/kg. Italian olive oil remains in high demand, particularly in the US and Japan, with exports increasing. However, there is potential risk from proposed tariffs by the US, which could increase the price of Italian olive oil by approximately USD 259.66 million (EUR 240 million). If these tariffs are implemented, they could lead to higher consumer prices, reduced sales, and a potential rise in counterfeit olive oil production. This could impact both the price and volume of Italian olive oil exports in the near future, with the threat of reduced competitiveness in key markets.

Greece

In W12, Greece's olive oil prices decreased to USD 4.69/kg, marking a 3.89% WoW decline and a significant 48.35% YoY drop from USD 9.08/kg. While food prices in Greece have risen slower than the EU average, slow income growth makes price increases burdensome. The recent drop in olive oil prices, likely due to market adjustments, may ease some consumer pressure. However, continued income disparity and fluctuations in global olive oil markets could impact future price stability, with low prices benefiting consumers but potentially reducing producer profitability.

3. Actionable Recommendations

Combat Fraud and Ensure Quality Control in the Brazilian Market

Brazilian olive oil importers and distributors should invest in stronger quality control measures and partnerships with regulatory bodies to address rising olive oil fraud. This includes verifying authenticity through traceability systems and conducting regular inspections of imported products. Establishing stronger collaboration with Ibraoliva to ensure compliance with labeling standards and consumer safety could help restore consumer confidence and curb fraudulent practices.

Adapt Pricing Strategies to Address Market Conditions

In response to rising olive oil prices in Brazil and the impact of ongoing droughts in major producing regions, olive oil producers should consider offering smaller, more affordable packaging to make their products accessible to price-sensitive consumers. Promotional discounts, bulk purchasing options, or subscription models could also mitigate the effects of price hikes while maintaining customer loyalty. Furthermore, emphasizing the long-term price drop expected in 2025 could help manage consumer expectations.

Capitalize on New Trade Opportunities and Market Expansion

Brazilian and Chilean olive oil exporters should leverage new trade agreements, such as the exemption of olive oil from import taxes in Brazil and the preferential tariff removal for Chilean olive oil exports to the EU, to enhance competitiveness. Expanding the market reach by targeting premium markets in Europe and the US, highlighting quality and sustainability certifications, and engaging in direct-to-consumer sales channels can boost exports and brand visibility in international markets.

Sources: Tridge, Agro Typos, UkrAgroConsult, Foodmate, Noticias Agricolas, Olive Oil Times, Tovima