Difficult campaign, future full of uncertainty. This is the analysis of the olive oil market, presented at Brussels twigs Civil Dialogue Group, the group of experts of the Directorate of Agriculture at the European Commission.
“The cry of alarm that we have launched several times during this complicated olive oil campaign is certified – he comments Andrea Carrassi (in the picture), general manager of ASSITOL, the Italian Association of the oil industry adhering to Federalimentare and Confindustria -. Some critical issues will still be present and will affect the entire supply chain, called to face a delicate scenario".
According to the findings of Brussels experts, the entire world production in the 2022-23 campaign recorded a drop of 26% compared to the previous one, for a total amount of 2.505.000 tons of olive oil. In particular theEuropa olearia has lost 39% of its quantities, unfortunately confirming the trend of the last five years, with the constant reduction of olive oil in the EU (-35%).
La Spain, which represents almost half of the volumes in the world, has produced 664 thousand tons of olive oil, that is, the 56% less than its usual standard. for theItaly, with 241 thousand tons, the decrease in the campaign just ended is of 27%almost a third less. Outside the EU, the growth of the Türkiye (+17%) and the sharp contraction in the volumes of Tunisia (-25), which also saw its exports reduce. Another worrying indication concerns the stock at the end of the campaign equal to 280 thousand tons, a very low figure compared to the 2021-22 campaign, which ended with 670 thousand tons.
The scarce availability of olive oil has caused the prices to rise throughout Europe, resulting in a further decrease in the consumption of olive oil, already burdened by inflation. This aspect also weighed on the exports of non-EU countries that buy most in Europe, such as for United States (-20%), China (-31%), Canada (-18%), and the United Kingdom (17,3%).
“It would be a serious mistake to believe that the next campaign will fix everything – warns Carrassi -. On the contrary, the reduced stocks of olive oil in Europe make us fear the availability of extra virgin olive oil in the coming months and, in general, for the next campaign”. The drought, which has greatly affected the trend of the market, is still making its effects felt throughout the Mediterranean, together with the consequences of the extreme weather.
For the director of ASSITOL, “the risk, despite the fact that Italy is expecting a better campaign than the past one, is to see the same situation repeat itself, making the prospects of our sector even more difficult. Serious reflection is urgently needed, within the supply chain and with the institutions, on the measures that allow us to guarantee extra virgin olive oil to our consumers. Otherwise, the health of Italians, which owes a lot to this well-being juice, could no longer count on the benefits of olive oil”.
