Olive Oil Consumption Drop in Greece and Italy

Olive oil is losing ground to cheaper vegetable oils in its heartland, the major producing countries Greece and Italy. Reported by the British Independent newspaper, The International Olive Council reports that olive oil consumption in these two countries is down to 1995 levels while Spain is holding steady. The consumption drop is attributed to consumers switching to cheaper vegetable oils.

Wholesale Olive Oil Prices Lowest in Years

According to the International Monetary Fund, wholesale extra virgin olive oil prices in Europe have halved since 2005 and are back to 2002 levels. The price drop is caused by bumper harvests in Spain and reduced consumption in Europe. In an attempt to stop the price slide EU producers have been assisted in storing the surplus olive oil.

Spanish olive oil production at record levels as prices hit record lows

The Spanish Olive Oil Agency reports that Spanish olive oil production during 2011/2012 has all previous levels and is 185,000 tonnes above the level of the previous year. Spain produces approximately 50% of the world’s olive oil.

Prices for extra virgin olive oil are down 13% in Spain (€1.75/kg) and 28% in Italy (€2.35/kg).
(Source IOC)

World Olive Oil Prices Down, Crop Estimates Up / Australian Import Prices Rise

World Olive Oil Prices Down, Crop Estimates Up

In its latest market commentary the International Olive Council reports that olive oil prices are continuing to fall.

Compared with the same time last year the prices for extra virgin olive oil were 14% lower in Spain, 22% lower in Italy and 30% lower in Greece.

At current exchange rates the Jaen (Spain) price of €2.19/kg for extra virgin olive oil in November converts to AU$4.56/kg or AU$4.15/litre.

The prices for refined olive oil were also lower by 16% in Spain and 11% in Italy. The Jaen ex-refinery price is €2.19/kg, the same as the extra virgin price.

Estimates for the 2008/2009 suggest that 2.866 million tonnes of olive oil will be produced, 202,000 tonnes more than last year.

Australian Import Prices Rise

According to the Australian Bureau of Statistics data, packaged virgin olive oil import prices increased by 9% from November 2007 to November 2008 to AU$5.54kg or $5.04/litre. Bulk prices rose by 33% to 5.87/kg ($5.34/litre).

Packaged refined olive oils rose 21% to $5.61/kg ($5.11/litre), with bulk refined oils rising by 20% to $4.91/kg (4.47/litre).

This substantial rise in prices cannot be attributed to currency exchange rates as the value of the Australian dollar in comparison to the Euro in November 2007 was the same as November 2008 at 0.60 Euro to the dollar.

Simon Field
Olive Business
8/1/2009