W6: Weekly Olive & Olive Oil Update
Olive
Spain
In order to shield farmers from the rise in theft on this type of farm, the Community of Madrid will adopt a line of direct aid per hectare of olive trees in the second part of the year. To assist farmers in fighting off the rise in thefts, the Community of Madrid will provide aid of USD 107.44 per hectare of olive groves
The production of olives has been drastically reduced in 2023, which is a regular occurrence with the frequent cultivation of olive groves. This, combined with the rising costs of energy, phytosanitary products, fertilisers, and collection, has caused the price of a kilo of extra virgin olive oil to increase to USD 8.59. The producer sector requests that the administrations take into account the dire circumstances that olive growers are facing rather than that the price of olive oil, which is also a source of health and the cornerstone of the Mediterranean diet, reach that level to cover expenditures. Now the price exceeds USD 5.37 at origin in the case of a kilo of extra virgin, but it seems that it has been forgotten that for years it did not even reach USD 2.68/kg at origin.
Olive Oil
Spain
Approximately 70M kgs of oil is expected to be produced, bringing the Castilla-La Mancha olive oil campaign to a successful conclusion, according to the minister of agriculture, water, and rural development. A campaign that is well below the region's average of 100M kg but not among the lowest" and with predictably, better revenue for olive growers.
Turkey
Turkish Olive Oil Exports Increased 32% In Volume and 50% In Value YoY
Turkiye achieved a foreign exchange of USD 201.6M in return for the export of 58.313K MT of olive oil in the 2021/2022 season. Pomace exports reached USD 24M with an increase of 178% YoY. Olive oil exports increased by 32% in volume and 50% in value compared to the previous season, signifying a new record in olive oil exports. The average export price of olive oil increased to USD 3,500/MT in the 2021/22 season. In this period, the countries to which olive oil was exported the most were the US with USD 75M (+65%), Spain with USD 24M (+17%), Japan with USD 17M (+49%), Saudi Arabia with USD 10M (+150%), and the UAE with USD 5M (+56%).
Argentina
Producers in Argentina Grapple With Inflation Ahead of 2023 Olive Oil Harvest
Argentina's producers are currently dealing with the highest rate of inflation in the past thirty years, less than two months before the start of the 2023 harvest. The greatest olive oil producer in South America has suffered from a prolonged economic crisis as a result of a massive debt burden, excessive deficit spending, and a widespread depreciation of the Argentine peso, the national currency. Every month or two, internal prices for transportation, electricity, fertilisers, and phytosanitary goods rise.
