1. Weekly News

European Union

Nutri-Score Classification of Extra Virgin Olive Oil Upgraded to "B," Calls for Further Improvement to "A"

The Nutri-Score, a front-pack nutrition labeling (FOPL) system developed in France and prevalent in European countries, recently upgraded the classification of extra virgin olive oil (EP) to "B." This modification, part of a broader update to the Nutri-Score evaluation algorithm, was highlighted by the Exporters' Association of Crete and the Scientific Society of Olive Encyclopedists. Despite the improvement, these organizations advocate for a classification of "A" for extra virgin and virgin olive oils, citing their natural composition and significant health benefits.

Spain

Olive Oil Production in Spain Surpasses Expectations

Spanish oil mills produced 851.01 thousand metric tons (mt) of olive oil between Oct-23 and May-24, an 11% increase from initial estimates for the 2023/24 season. According to the Ministry of Agriculture, Fisheries, and Food (MAPA), 642.71 thousand mt have been sold, with an average monthly output of 82 thousand mt. As of May-24, the country's olive oil stocks reached 319.91 thousand mt in 1,842 registered oil mills, with 140.23 thousand mt in bulk and 30.49 thousand mt packaged. The Olive Communal Heritage Foundation also reported 1.66 thousand mt of declared olive oil.

Spain Hosts Olive Oil Events to Boost Global Competitiveness

The Ministry of Agriculture, Fisheries and Food of Spainorganized two significant events in Jun-24: the II World Congress of Olive Growing and Elaiotecnia (Mundolivar) in Córdoba and the World Olive Oil Congress (OOWC) in Madrid. These events aim to promote Spanish food products, particularly olive oil, by addressing technological and market developments, production processes, food safety, sustainability, innovation, and internationalization. The initiative seeks to enhance the global competitiveness of Spanish producers and encourage participation in the Spanish Food Awards.

Olive Oil Sales in May-24 Show Strong Recovery, Indicating Tight Supply

In May-24, Spain's olive oil sales reached 97 thousand mt, recovering from a price dip and demonstrating a robust market. Over the first seven months of the 2023/24 season, 671 thousand mt have been sold, mirroring last year's performance and indicating a tight supply situation with only 492.29 thousand mt of stocks. Despite high consumer prices and a slight decrease in May-24, sales remain strong, surpassing the previous year's figures. As the campaign ends in Sep-24, total stocks of 319.91 thousand mt held by cooperatives and oil mills suggest potential imbalances. Although the traditional olive grove currently benefits from stabilized reasonable prices, further drops are not expected, as the prospects for the next harvest remain uncertain.

Greece

Olive Oil Drives Food Inflation in Greece

According to a study from the National Bank of Greece, olive oil significantly contributes to 50% of the country's food inflation. Despite a slowdown, food inflation in Greece remained high at 5.4% in Apr-24, compared to 2.2% in the rest of the Eurozone. Adverse weather conditions have caused a sharp increase in olive oil prices, leading consumers to switch to cheaper vegetable oils. However, The Greek government and opposition parties disagree on the extent of olive oil's impact on food inflation, each presenting different figures.

2. Weekly Pricing

Weekly Olive Oil Pricing Important Exporters (USD/kg)

Yearly Change in Olive Oil Pricing Important Exporters (W24 2023 to W24 2024)

Spain

The olive oil prices in Spain decreased by 1.15% week-on-week (WoW) to USD 8.66 per kilogram (kg) in W24 due to currency fluctuation. Spain's olive oil production totaled 851.01 thousand mt between Oct-23 and May-24, marking an 11% increase from initial estimates, with 642.71 thousand mt being sold. Furthermore, olive oil sales in Spain showed a strong recovery in May-24, indicating a potential tight supply.

Italy

The olive oil prices in Italy remained unchanged at USD 10.31/kg in W24. However, based on a yearly comparison, the prices increased significantly by 26.5% year-on-year (YoY). The price surge can be due to global supply shortages due to climate change. Climate change substantially threatens olive oil production in the Mediterranean, particularly in Italy and Spain, with drought and extreme weather impacting the industry. On Apr-24, Italy's olive production saw an 8% month-on-month (MoM) and 23.8% YoY decrease, amounting to 223.41 thousand mt.

Greece

Greece's olive oil prices increased slightly by 0.31% week-on-week (WoW) at USD 9.62/kg in W 24, compared to USD 9.59/kg in W23 due to currency fluctuations. Based on a yearly compassion, the prices increase significantly by 28.78% YoY, due to supply shortage. In the 2023/24 season, Greek olive oil production fell below 150 thousand mt, a record low and less than half of last year’s 340 thousand mt due to erratic weather. In addition, olive oil contributes to 50% of the country's food inflation, according to the National Bank of Greece.

Tunisia

In W24, Tunisia's olive oil prices rose to USD 8.46/kg, a 0.36% WoW increase, compared to USD 8.43/kg in W23. Tunisia is strategically planning to boost its olive production to match other Mediterranean countries by modernizing its olive groves with advanced irrigation systems. The country aims to expand the area under modern irrigation to cover half of the land used for olive cultivation in the future.

3. Actionable Recommendations

Address Food Inflation and Pricing Strategies

Developing strategies to manage price stability is vital in regions like Greece, where olive oil significantly impacts food inflation. Offering a range of products at different price points can cater to diverse consumer segments, potentially increasing our market share. Implementing cost-saving measures in production and distribution can help manage price increases, making olive oil more accessible.

Monitor and Adapt to Market Trends

Staying abreast of market trends and consumer preferences is crucial for strategic planning. Regular market analysis and consumer surveys can provide insights into emerging trends, enabling producers to adapt their offerings accordingly. Embracing digital tools for market intelligence can enhance decision-making and competitiveness.

Promote Olive Oil in Domestic and International Markets

Educational campaigns highlighting olive oil's health benefits and culinary uses can stimulate demand. Collaborating with chefs, nutritionists, and food influencers can amplify these messages. Furthermore, participating in international food fairs and expos can showcase the quality and versatility of olive oil, attracting new consumer segments.

Source: Haniotika, Agrodiario, Cuaderno Agrario, Olive Oil Times, Financialfood