News Briefs
The availability of food, animal feed and fertilizer will not be significantly affected in the European Union, despite the ongoing Russian invasion of Ukraine, according to the bloc’s latest short-term agricultural outlook.
As a result, olive oil prices should stay at current levels while marketing costs and demand are growing. According to the report, the E.U. is largely self-sufficient in feeding itself, with a massive agri-food trade surplus.
However, the report acknowledged the critical role played by Ukraine in grain and seed oil markets and warned how the war is further stressing global supply chains, which were already coping with considerable challenges before the outbreak of the war.
See Also:Olive Oil Exports to Exceed 1M Tons by 2030, E.U. ForecastsAmong the consequences of the geopolitical tensions, commodity prices are rising, including energy, fertilizers, wheat and soybeans. Experts expect those prices to grow further, potentially impacting the ability of farmers to purchase fertilizers, feed and pay their energy bills.
The report said the outlook is stable in the bloc’s olive oil sector. In the 2021/22 crop year, E.U. olive oil production is expected to reach 2.3 million tons, a 10 percent increase compared with the previous season.
Olive oil prices, which have steadily grown in the three benchmark markets in recent months, should stay at current levels. This will happen primarily because of increasing costs for packaging and transport.
Olive oil prices will also be affected by higher demand for the product as a substitute for other vegetable oils, the prices of which are skyrocketing due to the war in Ukraine.
Given this scenario, E.U. experts believe that olive oil consumption within the European Union could rise 7 percent compared with the previous crop year. Partially as a result, a slight 3 percent decrease is estimated for exports.
In its recent report on the market situation in the olive oil sector, the European Union’s Common Organization of the Agricultural Markets said global olive oil production should reach 3.378 million tons against the 3.010 million tons of the previous season.
Looking at the five-years production average, E.U. olive oil production grew by 11 percent in the 2021/22 crop year.
Spain is expected to contribute 66 percent of the yields with 1.49 million tons in the current season, followed by Italy with 15 percent (328,000 tons) and Greece with 10 percent (215,000 tons).
While most of the world’s production comes from E.U. member states, the committee also highlighted the global recovery in olive oil production in non‑E.U. countries, which is forecasted to reach 1.125 million tons, up from 959,000 tons in the previous crop year.
The report noted how those numbers should bring the current season’s results 1 percent above the five-year average for non‑E.U. producing countries.
More articles on: 2021 olive harvest, European Union, import/export
Dec. 18, 2023
Reflections on 45 Years Championing Italian Olive Oil in America
Nearly half of a century after a chance encounter with an Italian olive oil producer, John J. Profaci looks back on his role in the American market.
Sep. 18, 2023
Olive Oil Thefts Rising in Mills and Supermarkets Across Spain
Rising prices and an increase in organized criminal activity are driving the increase in thefts, officials said.
Aug. 17, 2023
Europe Passes Controversial Measure to Restore Nature
The new law, approved with a razor-thin margin, requires member states to introduce measures to restore twenty percent of land and sea by 2030.
Sep. 25, 2023
E.U. Chief Promises Strategic Dialogue with Farmers
Despite the pledge, analysts point out that Ursula von der Leyen expressed no clear intention in her speech to boost the E.U.’s initiatives on sustainability and climate neutrality.
Jul. 5, 2023
Albanian Olive Oil Exports Quadruple in First Quarter of 2023, Officials Say
The combination of Albania’s bumper harvest and poor harvests in Europe means there is more demand than ever from the European Union for Albanian olive oil.
Jan. 2, 2024
Extra Virgin Olive Oil Sales in Spain Fell by 40 Percent in 2023
The soaring retail price for extra virgin olive oil has driven the vital ingredient out of the reach of many families.
Mar. 13, 2024
How an Olive Oil Lover Found Success in The US Market
After discovering her passion for extra virgin olive oil in Crete, Joanne Lacina built a successful importing and online retail business in the U.S.
Dec. 18, 2023
Tunisia Takes Measures to Lower Olive Oil Prices at Home as Export Revenues Fall
Low fixed prices for Tunisian bulk exports to Europe mean Tunisian farmers are not benefiting from the surge in global olive oil prices.