`E.U. Tenders for Private Storage Conclude, Pulling 213,500 Tons from the Olive Oil Market - Olive Oil Times
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E.U. Tenders for Private Storage Conclude, Pulling 213,500 Tons from the Olive Oil Market

By Costas Vasilopoulos
Feb. 28, 2020 08:23 UTC

The fourth and final stage of the ten­der­ing scheme applied by the E.U. to rebal­ance its olive oil sec­tor con­cluded yes­ter­day, achiev­ing the with­drawal of another 41,600 tons of olive oil from the European mar­ket.

After months of mar­ket imbal­ance, I’m proud to see the last ten­der­ing under the pri­vate stor­age aid scheme for olive oil con­clude on a pos­i­tive note.- Janusz Wojciechowski, E.U. com­mis­sioner for agri­cul­ture and rural devel­op­ment

In the last ten­der­ing pro­ce­dure, sub­si­dies of €0.83 ($0.91) per day, per ton, were granted to oper­a­tors from Spain, Italy, and Portugal to keep their oils in stor­age for 180 days.

After all four ten­ders, another 213,500 tons of olive oil have been removed from the mar­ket, or about 27 per­cent of cur­rent E.U. stocks.

Spanish oper­a­tors cov­ered the vast major­ity of ten­der offers due to the shabby con­di­tions pre­vail­ing in the Spanish mar­ket, the European Commission press release said, while the most suc­cess­ful of the ten­der series was the third, account­ing for almost half of the olive oil being with­drawn.

Janusz Wojciechowski, the E.U. com­mis­sioner for agri­cul­ture and rural devel­op­ment, expressed his opti­mism for a recov­ery of olive oil prices in Europe.

“After months of mar­ket imbal­ance, I’m proud to see the last ten­der­ing under the pri­vate stor­age aid scheme for olive oil con­clude on a pos­i­tive note,” he said.

“It is too early to see the full impact of the sup­port mea­sure, but the first signs of price recov­ery are already vis­i­ble. The European Commission has shown once again its com­mit­ment and sup­port to European farm­ers, espe­cially when faced with mar­ket dis­rup­tion.”

Sources within the European Commission told Olive Oil Times that the objec­tive of the pri­vate stor­age mea­sure is not to com­pen­sate some oper­a­tors for mar­ket losses but to sta­bi­lize the E.U. mar­ket by with­draw­ing a suf­fi­ciently large vol­ume of olive oil until a return to accept­able mar­ket prices.

In any case, the Commission said that signs of improve­ment exist, but more time is needed before any sub­stan­tial effect on prices is observed.


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