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Spain’s agricultural trade deficit with Argentina decreased slightly in 2023 despite a 229 percent increase in olive oil imports.
According to data from the Spanish Ministry of Agriculture, Fisheries and Food, Spain’s trade deficit with Argentina decreased from €1.68 billion in 2022 to €1.13 billion in 2023.
There is certainly a lot of demand for Argentine oils, which provide freshness and high quality, in markets with low harvests… and with a decrease in olive oil stocks.- Guillermo Kemp, executive director, Solfrut
The slight improvement was primarily the result of decreased purchases of crustaceans and soybean meal from Argentina, the two largest agricultural imports by value.
However, olive oil, Spain’s seventh-largest agricultural import from Argentina, experienced a significant increase, rising from €11.5 million in 2022 to €37.6 million.
See Also:Spanish Olive Oil Sector Works to Develop Exports to ChinaRising imports were fueled by historically high prices and Spain’s abysmal 2022/23 crop year, in which production reached 660,000 tons, the lowest yield in more than a decade.
This was compounded by poor harvests across the Mediterranean basin and a bulk export prohibition in Turkey, one of the few countries where production exceeded expectations.
Conversely, Argentina enjoyed a bumper harvest of 35,000 tons in 2023, giving the world’s largest producer outside of the Mediterranean basin an increased capacity to export olive oil.
According to Rural Rosario, an agricultural association in central Argentina, virgin and extra virgin olive oil exports increased by 137 percent in the first ten months of 2023, reaching a record-high 30,567 tons, compared with the same period in 2022.
“With the dramatic drop in European production in general and Spanish production in particular, Argentina, despite having a small exportable supply, positioned itself in the first half of 2023 as the sixth world exporter of olive oil,” the association wrote.
Rural Rosario said Spain was the largest market for Argentine olive oil exporters in 2023, representing 34 percent of exports by value and 33 percent by volume. The United States and Brazil were the other leading export destinations.
“There is certainly a lot of demand for Argentine oils, which provide freshness and high quality, in markets with low harvests… and with a decrease in olive oil stocks,” Guillermo Kemp, the executive director of Solfrut, a large Argentine producer and exporter, told Olive Oil Times in a 2023 interview.
Most Argentine olive oil exports to Spain are in bulk and usually destined for major bottlers, including Deoleo. The oil is then sold domestically or re-exported.
According to data from the Spanish Ministry of Industry, Trade and Tourism, Spain exported 12.74 tons of olive oil to Argentina in 2023, valued at €77,390.
While the movement of the overall agricultural trade deficit in 2024 remains to be seen, Spain’s olive oil imports from Argentina are unlikely to rise again.
Official data will not be published until later in the year, but producers across Argentina anticipate a production decrease in 2024.
Meanwhile, data from Spain’s Food Information and Control Agency show that olive oil production reached 851,014 tons in the 2023/24 crop year, significantly higher than initial estimates of around 700,000 tons.
As a result, officials said Spain has 492,290 tons of olive oil stocks. Combined with imports, they believe this will be enough to meet local demand and exports until the start of the first olive oil from the 2024/25 harvest is ready to sell in November.
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