Spain just 6 cents per kg the margin for an olive grower

The analysis of the value chain of the Spanish olive-oil supply chain has provided clear and unequivocal results: margins for olive growers, oil millers and packagers are decreasing ed only those for distributors increase. The data, as reported by the Iberian magazine Mercacei, were illustrated during theSupply Chain Observatory which disclosed costs, prices and margins up to 2021. Here they are in detail.
Costs – According to the data analysed, in the 2018/2019 campaign the production cost of extra virgin olive oil was equal to € 2,013 kg, in the 2019/20 campaign it was € 2,757 kg and in the 2020/21 campaign it was € 2,520 kg. The costs of extraction (passed in the three-year period from 0,239 to 0,312 €/kg), those of packaging (from 0,514 to 0,470 €/kg) and those of distribution (from 0,270 to 0,282 €/kg).
Prices – The prices of sale of extra virgin olive oil to the olive grower increased by 21,6% between the 2019/20 and 2020/21 campaigns, going from € 2,122 kg to € 2,582 /kg. It should be noted that in the 2018/19 period they stood at € 2,281 kg. In the 2020/21 campaign the price of sale at the mill was set at €2,895 kg, while in 2019/20 it was €2,116 kg and €2018 kg in 19/2,510. The prices of sale to the packer on the other hand, they increased by 17,8% between the 2019/20 (€ 3,086 kg) and 2020/21 campaigns (€ 3,615 kg). According to the study cited, the prices of sale of extra virgin olive oil to the public they rose from €3,829 kg in the 2018/19 campaign, to €3,544 kg in 2019/20 and to €3,666 kg in 2020/21.
Margins – The study confirms the decrease in the margins received by the olive growers, which in the 2018/19 campaign stood at € 0,268 kg; in the 2019/20 campaign, at € 0,635 kg. and in that 2020/21 a €0,062 kg. The margin of oil mill fell from €0,280kg in the 2019/20 campaign, to €0,001 kg in the following campaign; while that of the packer has gone from € 0,500 kg. to €0,206 kg in the same period Finally, the margins of the distributor have increased from € 0,186 kg in the 2019/20 campaign to €0,231kg of the next campaign.
The plenary session of the Supply Chain Observatory was attended by representatives of the General Administration of the State, of the autonomous communities and of all the links in the food chain.