While Italian olive oil producers are complaining about purchase requests not arriving (there's almost 90% more extra virgin olive oil in stock than in the same period last year) and prices remaining low, the situation is certainly no better in Spain. In fact, here, it's happening. a paradox: oil production has decreased, Sales are going well (over 60% of the 300 million tonnes have already been sold), but prices remain stuck at 4 euros per litre.
It highlights it Olimerca which reports the considerations of various Spanish agricultural organisations, which denounce a price stagnation, despite this context of reduced supply and high demand, a scenario that, according to economic theory, should cause prices to rise.
Agricultural organizations agree on the diagnosis: the market works in terms of volume, but fails in terms of producer remuneration. Rising costs—fertilizers, energy, and pesticides—combined with climatic factors such as heavy rains that caused olives to fall to the ground, have significantly increased harvest costs.
In light of these data, Jesús Cózar, Secretary General of the Union of Small Farmers of Andalusia, said he was satisfied with the market trend, noting that “The lower production is evident and we note that sales continue to be sustained”. However, he acknowledged that “It is regrettable to note, once again, that producer prices are not recovering and remain around four euros, below the cost of production in traditional olive groves”.
For the association, marketing “it demonstrates the strength of the market and the good performance of consumption, but it does not translate into an increase in prices at source”, which remain around 4 euros per litre, significantly below the production costs in traditional olive groves in a context that shows a high sales rate: 746.251 tons, 3,5% more than last season.
Therefore, "If we abide by the law of supply and demand, prices must rise. We only ask that olive growers be paid a profitable price that covers production costs and allows our farms to earn a living.", concluded the Secretary General.
