Skewed data and a killer disease have cast a sense of anxiety over the Spanish olive oil market. Production has decreased and olive oil prices are likely to spike.
Spain will likely reduce olive oil production while increasing prices in 2016 mainly because of the Spanish government’s downward production corrections that have brought uncertainty upon the Spanish olive oil market.
The Spanish Agricultural Council had estimated in a recent report that Spain would produce 1.3 million tons of olive oil in 2016 but it turned out that estimate was a bit premature. In fact, it did not fully account for the production figures of Andalusia and Extremadura, which revealed themselves to be lower than expected; the Spanish Agricultural Council actually based its estimations on skewed data and anticipated yield figures that were too optimistic.
See Also:Complete Coverage of the 2016 Olive Harvest
The government considered more relevant figures and thus has stated that the actual yield would be closer to 1.311 million tons, which is still insufficient to meet demand. It is important to note that the Spanish government’s newly-released 2016 yield figure serves as the official barometer for olive oil pricing and economic analyses.
The uncertainties stemming from the government’s revised figures cast a sense of anxiety over the Spanish olive oil market, but it is not the only factor explaining the fall in olive oil production (as well as the rise in prices).
In fact, a disease that proved to be a serious threat has just arrived on the island of Mallorca. The island has taken protective measures as the Xylella fastidiosa pathogen is currently wreaking havoc on olive oil trees there.
Moreover, Spanish olive growers have started their yield relatively late and many stores don’t even have olive oil stocks.
Not being able to meet the domestic demand fully is economically penalizing, but the late harvest in Spain also had other severe consequences: Portuguese olive growers have started harvesting much sooner than their Spanish counterparts and the market share for Spanish olive oil in Portugal is currently experiencing a significant drop as Portuguese shelves have already been stocked with domestic olive oils.
All those factors have contributed to making olive oil prices spike in Spain. According to Poolred — the indicator of prices established by the Spanish Olive Foundation — olive oil prices are currently heading towards an ascending path. A kilogram of extra-virgin olive oil costs €3.46 ($3.67) while a kilogram of virgin olive oil costs €3.17 ($3.37).
The only Spanish province that has benefited from the rise in market price is Jaén. Indeed, the world-renowned province has had a better harvest than the rest of the country. As a result, Jaén will likely be able to earn new market shares and take advantage of the rise in olive oil price by selling its product at a higher price compared with last year while maintaining satisfactory yield levels.
More articles on: 2016 olive harvest, Diputación de Jaén, import/export
Jan. 28, 2025
Moroccan Producers Face Third Straight Year of Declining Production
Olive oil production is expected to fall to 90,000 metric tons, resulting in rapidly rising prices and fears of a shortage.
Feb. 28, 2024
Córdoba Festival Promotes Local Olive Oil Against Backdrop of Harvest Challenges
Organizers hailed the event as an opportunity for local producers to promote their products after a demanding harvest.
Sep. 23, 2024
Light Harvest in Argentina Accompanied by Rising Production Costs
Olive oil production in Argentina is expected to be less than one-third of last year’s record yield. At the same time, electricity and fuel prices have risen dramatically.
Dec. 10, 2024
Italian Producers Grapple with Market Instability
Record olive oil imports paired with lowered yields have compounded the worries of the sector.
Jul. 29, 2024
Researchers Introduce AI Tool to Help Olive Farmers Predict Harvest Timing
Using machine learning to analyze a range of data points from model farms, researchers were able to predict the timing of the olive harvest with 90 percent accuracy.
Oct. 17, 2024
Major Olive Oil Producer Loses $3M in Spate of Thefts
The CHO Group experienced warehouse thefts in Canada and the United States, with some stolen olive oil appearing at discounted prices.
Jul. 29, 2024
Sustainability Guides Award-Winning Producer in Turkey
Garisar successfully navigates climate extremes and economic challenges, producing sustainable, award-winning quality.
May. 28, 2024
Monte do Camelo Wins Big with Sustainably Grown Native Varieties
The small-scale Portuguese producers earned a Silver Award at the 2024 NYIOOC for a Galega monovarietal. The company focuses on growing native olives sustainably.