Markets Economy | Olive oil | Prices

Spain stays behind

Vassilis Zampounis
Neither in December was the Spanish olive oil harvest able to accomplish the anticipated level of production. According to the official information from the Spanish Ministry, olive oil production for December reached only 620 thousand tons, which are added to the approximate 100 tons of November. These give the heavily low sum of about 720 thousand tons. The reason is no other than the continuous and intense rainfalls that did not allow the harvest to reach its full potential, only but after December 15.

All of the above mean:

a) The prospect of 1.7 million tons definitely seem to be getting very distant for this year’s optimistic Spanish production. It will probably be limited to around 1.6 million tons, very close to 1.550.000 ± 50.000, as was mentioned months ago from olivenews.gr and from Olive & Olive Oil magazine. What remains a still a question is the oil returns: olive fruit which at the moment are 17.5%.

b) The time delay inevitably affects negatively the quality. Fresh oils were in high demand from the Italian and Spanish industry. Now everyone must compromise by lowering the bar of their expectations; however, it will be much better than last year’s Spanish disappointment.

c) Under those circumstances the pressure on the producer’s prices makes us wonder; it could be attributed to the aggressive trade policy that Spain has planned, by taking advantage the poor productions of Italy, Greece and Tunisia.




   

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