“To be optimistic, there will be a 40% increase in production costs, including energy and ancillary costs”. Stephen Caroli (in the picture), president of the millers association of Puglia, who is optimistic by nature, seems really worried about the next campaign.
President Caroli, what scenario do the more than a thousand oil mills in Puglia face today?
“Not nice, like in every part of Italy. In this region we have three broad categories of oil millers: those who produce for themselves and also work on behalf of third parties, those who only work on behalf of third parties, those who only make bulk products for tankers. And none of the three categories is safe from the increases we are seeing. Which, if we only look at energy, are higher than those of all other European countries, including Spain which is our main competitor in the sector”.
Who is worse off?
“Net of the cost of energy which, as mentioned, grows for everyone with truly exaggerated percentages, to which must be added the increases in maintenance and spare parts, those who bottle with their own brand must consider that the prices of glass bottles, stagnant caps and labels are doubled”.
Is the increase in the price of oil the natural consequence?
“Inevitably, it is no longer possible to produce at current prices. The increase will also necessarily be for those who have to grind the olives. With us there was a variable fork from 12 to 18 euros per quintal of olives, certainly to be revised upwards. But that might not be enough."
In what sense?
“By now the millers are like fish out of water in the supply chain. With the oil CMO which prevents the category from participating in any concessions, I don't see much room for the future. We need a 360-degree revolution that allows the miller to see his role as an oil producer and creator of value recognized, otherwise we will continue an agony that will risk making this figure disappear".
di
