In W43 in the olive and olive oil landscape, olive oil prices have surged, leading to higher costs for traditional Italian and Spanish dishes, even as overall inflation in Europe is decreasing. In the 2022/23 season, Italy has experienced a 43% year-on-year (YoY) increase in olive oil prices, while Spain has seen an even more substantial jump of 67%. The European Commission (EC) has warned that olive oil prices in Europe are expected to continue rising in the next season, which may compel consumers to reduce their consumption of this popular product. Prices have approximately doubled in the past year due to factors such as drought, pests, and disease that have damaged olive oil crops from major producers.
Despite weather challenges such as winter drought and spring rains affecting flowering and fruit sets in various regions, Italian olive oil production is forecasted to increase by 20% to 290 thousand metric tons (mt) in the 2023/24 season. However, this production level is still lower than the average of the past four years. This rise in production is primarily attributed to improved yields in the southern regions, with a significant 34% increase, especially in Puglia and Calabria, which collectively contribute to over 60% of Italy's olive oil production. Sicily's production is expected to remain similar to the previous year, which was already low.
In Peru, the 2022/23 olive oil campaign ended in September with global sales of 268.53 million liters, marking a 12.96% decrease compared to the previous season. Sales of extra virgin olive oil totaled 113 million liters, a 12.62% decrease from the 2021/2022 campaign. Mild olive oil sales decreased by 16.87%, intense olive oil sales decreased by 19.47%, and virgin olive oil sales increased by 11.34%, reaching 30.24 million liters. Pomace oil sales amounted to 19.18 million liters, a 5.31% increase from the previous campaign. In Sept-23 alone, 24.19 million liters of olive oil, 2.43 million liters of olive pomace oil, and 32.86 million liters of vegetable oils were sold. In the first nine months of 2023, 194.79 million liters of olive oil were sold, representing a 15.87% decrease year-on-year (YoY).
Greek Kalamon olive producers are facing a challenging year due to pest attacks and gliospora, aggravated by unfavorable weather conditions. Currently, olive mills in the Messolonghi area pay USD 7.59 per kilogram (kg) for Kalamon olives and USD 7.91/kg for oil olives. In 2023, the region is expected to produce only 10 to 12 thousand mt of olives, significantly less than the yield of about 50 thousand mt in a productive year.
Aydın, a prominent olive oil-producing region in Turkey, earned USD 40.6 million from olive oil sales and USD 33.2 million from olive exports in the previous season. In an effort to increase export revenues, Aydın is concentrating on the Chinese market for olive oil exports and has created a "Target Country China" report to assist olive oil producers in this endeavor. This decision is due to China's import of olive oil worth USD 212,184 in 2022, highlighting the significant export potential for olive oil to the Chinese market.
