It's a crisis for extra virgin olive oil. Blame the disastrous oil campaign, affected by drought and episodes of extreme weather, and the rise in raw material prices. To denounce the critical issues of the sector is ASSITOL, the Italian Association of the oil industry adhering to Federalimentare e Confindustria, which already announced the difficulties of the sector last autumn.
“What we feared at the beginning of the campaign is happening – explains Andrea Carrassi, General Manager of the Association (in the picture) – due to the low production, our sector runs the risk of not having the quantity of extra virgin olive oil available to supply the market in the coming months”.
L'Italy recorded a heavy drop in production, equal to 30% less of oil. What weighed on the markets, however, was above all the situation of the Spain, the world's leading producer of olive oil, which saw its quantities halved due to the prolonged drought, reaching 700 thousand tons. This record contraction has generated a surge in raw material costs, to which have been added energy and packaging price increases. There availability of oil, both in Italy and abroad, is therefore to the minimum terms. Furthermore, according to the first forecasts for the next campaign, the situation is destined to worsen, due to the continuing drought in Spain and in a large part of the Mediterranean.
The scenario, also in the future, will be marked by the scarcity of raw materials and by rising production costs, with clear repercussions on consumption. However, the decreased availability of oil and the consequent price increases have not stopped promotional sales, thus putting at risk the already scarce quantities of extra virgin olive oil available.
"In recent months, oil has become a precious commodity and the use of below cost could anticipate the depletion of our products - stigmatizes the General Manager of ASSITOL - This is why we reiterate the appeal to the sense of responsibility of the entire supply chain, from production agriculture to the industry we represent, up to large-scale distribution, so that it is possible to guarantee olive oil on Italian tables”.
