No more below-cost pricing, yes to promoting extra virgin olive oil, involving the entire supply chain, including not only its agricultural component, but also large-scale retail trade and catering.
Assitol, the Italian Association of the Oil Industry, a member of Federalimentare and Confindustria, has been warning for some time against the downward spiral of prices and reiterates, once again, the importance of a different positioning for olive oil, a cornerstone of the Mediterranean Diet and healthy eating.
“The return to a more balanced production scenario after the difficult campaigns of recent years – is the comment of Anna Cane, president of the olive oil group of the Association - Unfortunately, it has brought back into the limelight sales below cost, which over time have devalued the value of the product".
Italian law allows extra virgin olive oil to be sold at a price below its cost only once a year. However, the reality is quite different: for years, large-scale retailers have been using promotions indiscriminately, with no regard for seasonality and with wide discretion. “Olive oil is not a commodity, nor just any condiment – stigmatizes Anna Cane -. But it's an essential product for consumer health. In this campaign, which promises to grow after years of drought and declining production, it's right to reiterate this to raise awareness across the entire sector."
Due to the constant promotions, Consumers have become increasingly accustomed to looking for products at a lower price, without thinking about the real value of extra virgin olive oil and all its distinctive elements compared to other food products. “A vicious spiral, to which the supply chain, as a whole, must say enough – the president of the Olive Oil Group strongly states. The category's loss of value has also led, over the years, to a progressive decline in operators' profitability, making it increasingly less attractive to cultivate olive groves, produce oil, and package it."
Il price to the final consumer, in most cases, risks not covering production costs, thus damaging the entire supply chain. "For this reason, it's time to restore value to olive oil by calling on European and national institutions to ban, once and for all, below-cost sales and promote an effective consumer education campaign." A request which, however, "We don't want to go it alone, but rather by empowering the entire olive oil supply chain, from olive growers to retailers. The goal is to initiate an ongoing dialogue, transforming the sector to ensure a sustainable future for extra virgin olive oil, moving from the commodity model pursued so far to a value model."
In this direction, the role of large-scale distribution and catering must be profoundly rethought. “Large-scale distribution and catering – concludes the president Anna Cane –They could become key players in the category's promotion process, each in their own way becoming the most effective ambassadors for our oil and fostering consumer engagement. This way, it will be possible to define a positioning for our extra virgin olive oil that respects the product's tangible and intangible values.. A bottle of extra virgin olive oil, in fact, “It doesn't simply contain a liquid condiment, but many elements essential for our health and our palate. It represents culture, territories and, above all, the commitment and skills of all operators in the supply chain.”
