W22: Olive & Olive Oil Update

In W22 in the olive and olive oil landscape, the Spanish Civil Guard preventively seized 70K litres of adulterated products. Based on laboratory analysis, the product offered in 5-liter bottles, labelled as extra virgin olive oil, was a mixture of vegetable oil with lampante (low-quality) olive oil, unfit for human consumption. According to data from the International Olive Council (IOC), Italy has produced an average of 275K MT of olive oil annually during the past five years. Since the Italian annual consumption of olive oil is 600K MT, more than 400K MT, or 80% of its olive oil needs, are covered by imports. In the new season, which will start between October and November, Italy is expected to have less than 30K MT of olive oil in stock. The coming harvest will unlikely fix the country's olive oil deficit, as Spanish yields will still be lower than needed. It has not rained since February in Spain, which could impact the new olive oil campaign, and the drought in Tunisia further complicates the situation. On May 20, organisations from Spain and Italy joined together to create initiatives in favour of Extra Virgin Olive Oil as the industry standard for the world's olives. The objectives involve training industry professionals to obtain extra virgins of high organoleptic and healthful quality as well as defending the legitimacy of olive oil against the marketing of mixtures with other fats.

The Spanish Olive Oil Interprofessional has presented its new promotional campaign in Germany which is now its priority target market in Europe. With 80K MT, Germany is the leading European consumer of olive oils among non-Mediterranean countries. Italian goods have always dominated the German market. In 2022, according to Statistics Germany data, Italy exported 36,294MT of olive oil to Germany, accounting for 45.96% of the total German olive oil imports. Spain exported 24,993MT, or 31.65% of the total imports. In 2013, Italy represented 72.43% of Germany's total olive oil imports, while Spain represented 13.52%, with sales of just over 9K MT. Despite significant advancements in recent years, Spain still aims to close that gap. Turkey produced 730K MT of olives and 450K MT of olive oil in the last season, a record level due to the increased number of olive trees. Olive and olive oil exports, which were 50K MT in the last five years, exceeded 100K MT in the first three months of 2023. In May, the Aegean Olive and Olive Oil Exporters' Association increased its olive oil and olive exports by 461% YoY, from USD 14M in May 2022 to USD 78.4M in May 2023. Lastly, Taiwan has begun to change its preferences in the consumption of oils, looking for other healthier product options. This trend can become an opportunity for European olive oil companies. In 2022, Spain, Italy, and Greece represented 93.24% of total imports of virgin olive oil and 83.07% of refined olive oil imports to Taiwan. Although the perception of Spanish olive oil has improved in recent years, most Taiwanese consumers continue to associate this product with Italy.