Weekly Product Updates

W28: Olive & Olive Oil Update

Olive Oil
Published Jul 21, 2023

In W28 in the olive and olive oil landscape, on July 14, the European Union (EU) requested the establishment of a compliance panel to assess the United States (US) measures in response to the World Trade Organization's ruling against US tariffs on Spanish black olives. Furthermore, the EU may consider implementing retaliatory measures if the US fails to comply with the compliance panel's report. The import of Spanish black olives to the US market has declined by 68% in the last five years, making it less competitive compared to olives from other regions like North Africa, as reported by Spain. In Europe, olive oil prices increased due to the effects of the drought. Olive oil, which exceeded USD 4.50/kg for the first time in Sep-22, increased to USD 7.87/kg due to rising temperatures and a lack of precipitation in Spain, the world's largest producer, as well as Italy and Portugal.

In Turkey, retail sales prices of olive oil increased by over 77% in two months, going from USD 3.34/liter to USD 5.94/liter. This was driven by increased demand for olive oil from Turkey amid global production problems and the effects of the domestic exchange rate increase on costs. Turkey experienced a significant increase in olive and olive oil exports, growing by 190% in the Jan-23 toJun-23 period compared to the same period the previous year. The total exports reached USD 559.8 million. Notably, the country that received the highest amount of exports was Spain, which was affected by the drought. Turkey's exports to Spain increased from USD 7.6 million in the Jan-22 toJun-22 period to USD 203.9 million in Jan-23 to –Jun-23.

Andalucía TRADE organized successful commercial meetings in Delhi and Bombay from June 19 to June 23, where five Andalusian agri-food companies had 275 business meetings with 55 Indian agents. The main objective was to promote the consumption of olives and olive oil in India, given its potential as the world's most populous country and the fourth-largest Asian destination for Andalusian olive oil. In the first four months of 2023, Andalusia led olive oil sales to Asia, exporting USD 131.62 million, with the Indian market witnessing a 31% increase, reaching over USD 11.14 million. Meanwhile, for table olives, exports to Asia in the first four months of 2023 reached USD 34.87 million. Lastly, olive oil exports from Albania quadrupled to 1.25 thousand metric tons (mt) in Jan-23 to-Apr-23, from 326 mt in Jan-23 to- Apr-22. The increase can be attributed to record olive yields in Albania during the 2022/23 season and drought conditions across the Mediterranean basin. These factors enhanced the competitiveness of Albanian olive oil on the market.

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