Weekly Product Updates

W7 Olive and Olive Oil Update: Global 2023/24 Olive Oil Production Revised Downward, Spanish Output Reaches 774,653 MT in 2024

Olive Oil
Published Feb 23, 2024
In W7 in the olive and olive oil landscape, according to the USDA's Feb-24 report, global vegetable oil production for the 2023/24 season is projected to reach approximately 222.83 mmt, slightly adjusted from the initial forecast of 223.03 mmt, with a downward revision in olive oil production to 2.31 mmt. Meanwhile, olive oil production in Spain figures until Jan-24 reached 774.65 thousand mt, with notable increases in exports recorded during the month. Additionally, in Aydın, Türkiye, olive oil factories concluded their 2024 season prematurely due to drought conditions despite maintaining high-quality oil production. Collaboratively, specialists from Georgia are aiding Kazakhstan in olive cultivation across multiple regions, aiming to establish plantations and secure international certification for product exports, on knowledge transfer and potential membership in the International Olive Council.

Global Vegetable Oil Production Forecasted to be Slightly Lower for 2023/24 Season

According to the Feb-24 report by analysts at the United States Department of Agriculture (USDA), the projected volume of global vegetable oil production for the 2023/24 season is approximately 222.83 million metric tons (mmt), compared to 217.67 mmt in the previous agricultural year. However, this figure has been slightly adjusted downward from the initial forecast of 223.03 mmt for the 2023/24 season. Additionally, the forecast for olive oil production has been revised downward from 2.5 mmt to 2.31 mmt for the same period.

Spanish Olive Oil Production Reaches 774,653 MT in 2024

Spanish olive oil production as of 2024 reached 774.65 thousand metric tons (mt), with Jaén province contributing 190.41 thousand mt. Jan-24 alone saw Spanish production reaching 185.01 thousand mt. Total olive oil stocks in Spain as of January 31, 2024, amounted to 735.14 thousand mt, with notable increases in exports recorded during the month. The Secretary General of the Union of Small Farmers (UPA) in Andalusia highlighted January as the best sales month thus far in the 2023/24 olive oil season, emphasizing the continued preference for olive oil in the Spanish diet.

Spain's Catalonia Allocated USD 7.54M Aid Package to Olive Sector Amid Drought

Catalonia's Minister of Climate Action announced a new aid package of USD 7.54 million (EUR 7 million) for the olive sector to mitigate the ongoing drought impact, bringing the total aid for the primary sector over the past year to USD 181.02 million (EUR 168 million). The aid will be distributed at rates of USD 183.18 per hectare (ha) for dryland olive trees and USD 258.60/ha (EUR 240) for irrigated ones in specific communities, with a maximum aid surface of 70 ha for professionals and 15 ha for non-professionals. As of W7, the agricultural sector has received approximately USD 72.19 million (EUR 67 million) from these aids, with an additional USD 93.74 million (EUR 87 million) in the processing pipeline.

Aydın Olive Oil Factories End 2024 Season Early Amid 'Off Year' for Olives

In Aydın, a significant olive production center in Türkiye, olive oil factories ended their 2024 season prematurely due to this year being an 'off year' for olives, attributed to drought conditions. Typically, olive oil pressing operations span from October to May, but in 2023/24, they lasted only two months as the harvest ended early. Despite the reduced yield, factory employees noted that the quality of the olive oil remained high, with lower acidity levels despite the scarcity of olives.

Georgia and Kazakhstan Collaborate on Olive Cultivation Initiative

Specialists from Georgia are collaborating with Kazakhstan to cultivate olives in multiple regions, with seedlings sourced from Kakheti. The initiative aims to plant the best olive varieties and establish plantations, supported by the President of the International Olive Council. Plans include launching a processing plant and obtaining international certification for product exports. Experimental olive tree plantings have commenced in the Zhetysu and Mangistau regions, with further intentions to introduce Georgian seedlings to the Turkestan region. Georgia is offering knowledge transfer and assistance for Kazakhstan's membership in the International Olive Council, which oversees a significant portion of the global olive oil market.

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