Weekly Product Updates

W6 Olive and Olive Oil Update: Portugal Anticipates 25% YoY Surge in 2024 Olive Harvest as Global Olive Oil Market Faces Downturn

Olive Oil
Vegetables
Portugal
Published Feb 22, 2024
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In W6 in the olive and olive oil landscape, the 2024 olive harvest in Portugal is projected to increase by 25% YoY, despite challenges from temperature increases during flowering, attributed to improved productivity in traditional groves and the introduction of new intensive groves. Although global olive oil production declined, particularly in Spain, bulk oil prices in Portugal surged by 91% YoY in Dec-23. However, olive oil exports from Portugal increased by 6.1% YoY from Jan-23 to Nov-23, driven by higher prices, with Spain and Brazil remaining primary export markets. Meanwhile, the EC added "Aydın Memecik Zeytinyağı," an extra virgin olive oil, to the EU Register of Protected Designations of Origin (PDO), renowned for its quality derived from the Memecik olive variety grown in Aydın province. In Greece, olive oil prices spiked significantly from Aug-23, attributed to low production levels and decreased consumption, with producer prices exceeding USD 9.70/kg. Similarly, olive oil prices in Italy remain high due to a prolonged drought, low reserves, and robust export demand, prompting the Spanish government to exempt olive oil from VAT to mitigate increasing costs.

Portugal's Olive Harvest to Rise 25% Amidst Global Production Decline

The olive harvest in Portugal is expected to increase by 25% year-on-year (YoY) due to improved productivity in traditional groves and the introduction of new intensive groves, despite challenges from temperature increases during flowering. However, global olive oil production declined, particularly in Spain, impacting bulk oil prices in Portugal, which surged by 91% on Dec-23. Despite decreased export volume due to reduced production, olive oil exports from Portugal increased by 6.1% from Jan-24 to Nov-23, mainly driven by higher prices. Spain and Brazil remain the primary export markets, with exports to both countries showing notable growth during this period.

EU Recognizes 'Aydın Memecik Zeytinyağı' Olive Oil for Unique Quality

The European Commission (EC) has added "Aydın Memecik Zeytinyağı," an extra virgin olive oil, to the European Union (EU) Register of Protected Designations of Origin (PDO). Derived from the Memecik olive variety grown in Aydın province, this olive oilis renowned for its unique quality attributed to the region's weather conditions. Professional taste testers have awarded it high scores, particularly for its bitter and spicy taste, characteristic of phenolic compounds present in the oil. Standardized by Turkey's Ministry of Agriculture and Forestry, the Memecik olive variety contributes significantly to the oil's phenolic content, with "Aydın Memecik Zeytinyağı" requiring a minimum phenolic content of 100 milligrams (mg) per kilogram (kg) and being particularly rich in luteolin, a key phenolic substance.

Greek Olive Oil Prices Soar Amidst Low Production and Decreased Consumption

In Aug-23, olive oil prices in Greece surged from USD 8.73 per liter (L) to USD 16.22/L in just a few months, with a two-liter package reaching USD 29.09. The President of the National Interprofessional Organization of Olive Oil (EDOE) emphasized that these prices are high due to low production levels and decreased consumption. Producer prices for extra virgin olive oil exceeded USD 9.70/kg, while retail prices ranged from USD 14.01 to 16.16/L and from USD 172.38 to 183.15 per tin, reflecting the scarcity of olive oil due to depleted stocks from the previous year and reduced consumption.

Italian Extra Virgin Olive Oil Prices Remain High Amidst Mediterranean Drought

The price of extra virgin olive oil remained elevated in Italy in Jan-24, driven by a prolonged drought affecting Mediterranean countries, particularly Spain, where water reserves are at a 22% low. Scarce oil reserves and high export demand also contribute to the high prices. The Spanish government has exempted olive oil from the current 5% VAT due to the high cost of living and to alleviate the impact of increasing oil prices. Market trends at the beginning of the new year mirror those at the end of 2023, with extra virgin olive oil prices in Italy remaining high, reaching peaks of USD 11.31/kg for export-quality olive oils.

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