1. Weekly News

Spain

New Agricultural Association Olivérica Unites High-Intensity Olive Farmers in Spain and Portugal

A new agricultural association, Olivérica, has been established to unite high-intensity olive farmers from Spain and Portugal. The association aims to serve as a liaison between administrations and society, promote research, development, and training, and highlight the benefits of hedge olive groves. In its inaugural year, Olivérica will focus on onboarding more members and reaching at least 25 thousand hectares (ha) of hedge olive groves. The association plans to offer advanced services to its members to enhance their production efficiency, competitiveness, and environmental sustainability. Additionally, Olivérica will emphasize the health benefits of extra virgin olive oil and its role in combating climate change.

In Spain, hedgerow olive groves cover about 7% of the olive grove cultivation area and contribute 12% of the national oil production. In Portugal, these groves account for 75% of the country's total palm production, primarily from the Alentejo region.

Brazil

Mantikir Summit Premium Olive Oil Wins Top Honors at Evooleum 2024

Mantikir Summit Premium olive oil, produced in Brazil, secured first place in the "Limited Production" category at Spain's Evooleum 2024 International Competition. This premium product, made from olives harvested from the highest olive grove in Brazil, also garnered awards in Portugal, Greece, and Italy. This success is part of a broader trend, with olive oils from Minas Gerais, Brazil, receiving international recognition and accumulating medals in traditional producing regions such as Spain, Greece, Portugal, and Italy. The Agricultural Research Company of Minas Gerais (Epamig) significantly contributes to this success by developing management techniques, studying pest and disease control, and advancing agroindustry and processing services.

Italy

Italian Researchers Discover New Olive Varieties in Lazio

The Italian National Research Center (CNR) has discovered two new olive varieties in the Lazio region. Local growers plan to create a new production area for certified olive oil, leveraging these varieties to significantly benefit olive growers and enhance the value of local products. Additionally, an innovative mobile application called Olivamea is being developed, utilizing artificial intelligence to identify olive varieties. The beta version of Olivamea is available for Android, with the official release scheduled for June 21.

Turkey

Turkey Eases Olive Oil Export Ban with New Quota

The Turkish government, which had previously banned olive oil exports due to significant price increases in the domestic market, has announced a new quota allowing the export of 50 thousand metric tons (mt) of olive oil from Jul-24 to Nov-24. This quota applies specifically to bulk olive oil, particularly lampante. On May 24, many associations called for an end to the export ban, citing potential nominal losses of around USD 432 million.

Meanwhile, the price of refined olive oil in Turkey has risen from USD 9.18 per liter in Jan-24 to USD 10.04/l in Jun-24. Similarly, the price of two-liter extra virgin olive oil increased from USD 16.12 (TRY 520) to USD 24.61 (TRY 794) during the same period.

Germany

Olive Oil World Tour Boosts Spanish Olive Oil Market in Germany

The Olive Oil World Tour initiative, a collaboration between Olive Oils from Spain and the European Union (EU), was launched in Germany in 2021 to counter a potential drop in demand caused by rising olive oil prices. The campaign successfully increased consumer awareness about the benefits and quality of European olive oils. As a result, the value of Spanish olive oil imports in Germany nearly doubled, rising from USD 72.4 million (EUR 67 million) in 2021 to USD 140.4 million (EUR 132 million) in 2023, marking a 97% increase. During the same period, the value of Italian olive oil imports remained stable, increasing slightly from USD 216 million (EUR 200 million) in 2021 to USD 224.64 million (EUR 208 million) in 2023.

2. Weekly Pricing

Weekly Olive Oil Pricing Important Exporters (USD/kg)

Yearly Change in Olive Oil Pricing Important Exporters (W23 2023 to W23 2024)

Spain

Spanish olive oil prices increased slightly by 0.34% week-on-week (WoW) to USD 8.76 per kilogram (kg) in W23 compared to USD 8.73/kg in W22. The country's olive production has been negatively impacted by drought and heat, reducing yield and quality. In response, the Spanish government has issued aid to compensate for the losses suffered by oil mills.

Italy

The price of olive oil in Italy remained unchanged at USD 10.31/kg in W23. However, based on a yearly comparison, the prices increased significantly by 35.12% year-on-year (YoY). The price surge can be attributed to supply shortages due to climate change. Experts recommend olive farms collaborate closely with research institutes to address these challenges. Some experts also raised concerns about the rise of super-intensive production models and emphasized the importance of Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) labels in preserving the quality and tradition of Italian olive oil.

Greece

Olive oil prices in Greece experienced a slight WoW decrease of 0.93% to USD 9.59/kg in W23 compared to USD 9.68/kg in W22. Despite the price fluctuations, global olive oil supply remained tight due to declined production in Major producing countries. Buyers show strong interest in high-quality products. However, prices are forecasted to stabilize with promising yields and quality in the 2024 production.

Tunisa

Tunisian olive oil prices fell by 0.94% WoW to USD 8.43/kg in W23, compared to USD 8.51/kg in W22. Production for the 2023/24 season increased significantly by 220 thousand mt, a 22.22% YoY increase. Tunisia's initial olive oil production estimate for the 2024/25 season will be released by the end of Jun-24 after the final phase of flowering settles down. Market stability is expected until then.

3. Actionable Recommendations

Monitor Production and Market Conditions

Tunisia's significant increase in olive oil production for the 2023/24 season provides a strong foundation for market stability. Producers should closely monitor the first official estimate of olive production for the 2024/25 season to adjust their strategies accordingly. Maintaining stable market conditions and focusing on high-quality production will ensure Tunisian olive oil remains competitive internationally. Engaging with global buyers and promoting the unique attributes of Tunisian olive oil can further enhance export opportunities and support the local industry.

Enhance Consumer Awareness and Sustain Market Growth

The Olive Oil World Tour initiative in Germany has successfully boosted the market for Spanish olive oil. To sustain this growth, Spanish producers and the EU should continue investing in consumer education campaigns highlighting the benefits and quality of European olive oils. Expanding the campaign to other critical EU markets can further increase demand and stabilize prices. Collaborating with German retailers to offer promotional activities and tastings can also help maintain consumer interest and drive sales, ensuring long-term market growth.

Sources: OliMerca, Agronews, lha, Agrotypos, Agricolae