Spain dribbled out less than 49,000 tons of olive oil in February, about a third of its production the same month last year and a fifth of that in the previous three years.
As it nears the end of its worst harvest in a decade, the total production for the five months since October was just 596,000 tons — 62 percent down on the same period last season, according to the latest market report from Spain’s Olive Oil Agency (AAO).
About 3.2 million tons of table olives have been through the mill, with an average yield of 18.26 percent, 2.74 points below last season.
Trade remains depressed, too, with exports down nearly a quarter on the same period last year and domestic sales sliding 17 percent to just 205,700 tons for this October to February.
Exports up by half, stocks down a quarter
Figures for last month are still provisional but show Spain has so far imported 40,400 tons of olive oil, up by half on the same period last season.
Its stocks at the end of February were estimated at 856,300 tons, which is 24 percent less than the average for the last four seasons.
Outlook on prices, next harvest
The Spanish government has been in talks with farmer unions in Spain over their calls for a rescue package for the olive oil sector. Drought and late frost has cut yields drastically this season but low prices saw producers struggle even during the last three bumper harvests.
Farmgate prices have gained more than one euro since a recovery started mid-last year but despite much talk of the inevitability of further rises beyond €3/kg, the POOLred ex-mill reference price at March 26 was €2.83/kg.
Meanwhie, heavy rain this month has increased the occurrence of olive leaf spot, which could reduce olive production next season, warns Nicolás Chica, general secretary of the Granada branch of farmer union UPA.
And in Catalonia there are concerns about the consequences of less aerial spraying for olive fly in the wake of government funding cuts.
Table olives
Since the start of the table olive season in September, 482,310 tons have been harvested, dipping 8 percent on last season.
Both exports and domestic sales have grown, by 12 and 4 percent respectively, and stocks at the end of February stood at 576,640 tons, a fall of 9 percent on last season.
Related Articles
Feb. 23, 2024
World Trade Organization Finds U.S. Noncompliant in Table Olive Trade Spat
The WTO ruled that the U.S. must remove tariffs on Spanish table olive imports, while a separate case is pending in the Court of Appeals.
Nov. 7, 2024
Turkish Producers Set for Bumper Harvest
In the best-case scenario, officials anticipate a record-breaking harvest of 475,000 tons. However, a lack of rain could curtail the final yield.
Jun. 26, 2024
Rising Olive Oil Imports Contribute to Spain’s Trade Deficit with Argentina
While Spain’s agricultural trade deficit fell by 33 percent between 2022 and 2023, olive oil imports increased by nearly 230 percent due to a poor harvest and rising prices.
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.
Nov. 15, 2024
Spanish Table Olive Sector on Edge After Trump Election Win
Spain's black table olive producers, already reeling from tariffs imposed during the first Trump administration, fear more are on the horizon.
Jul. 20, 2024
Trade Commission Extends Tariffs on Spanish Black Olives
The decision came two months after the U.S. Court of Appeals ruled in favor of the Commerce Department’s tariffs.
Nov. 7, 2024
Harvest in Greece Runs Into Early Problems
The ongoing drought battering southern Greece threatens to reduce this year's expected olive oil yield of around 240,000 tons.
Jul. 1, 2024
Drought and Ill-Timed Rain Lead to Poor Harvest in Uruguay
Officials estimate production will be 72 percent below the five-year average, after an historic drought and a rainy harvest.