Filenews 13 November 2024 - by Angelos Angelodimou
A change of scenery is recorded in the international olive oil market. Compared to the last two years, when drought and heat waves reduced production and recorded skyrocketing prices, with a consequent decrease in consumption, today we see a noticeable fall in prices in the major markets.
According to reports from abroad, there is a sharp drop in olive oil producer prices in all major shopping malls. Currently, the market is trying to balance at the previous levels in terms of production, since normality has largely returned. However, where great emphasis should be placed is on consumption.
Things do not seem to follow exactly the same course in Cyprus, as, as it turns out, the price of olive oil fluctuates at last year's levels and perhaps slightly lower than last year, in contrast to abroad, where prices have fallen. Producer prices in cases of direct sale to consumers ("in the water bottle") start from €6-7 per liter, for packages of 20 liters.
At the same time, olive producers stress that, due to reduced production in recent years, there are olive mills in Cyprus that are underfunctioning, which results in one mill closing every 2-3 years.
More specifically, according to a report in the Financial Postman, in recent days there has been an unprecedented and sharp drop in producer prices for olive oil, which extends to all shopping centers across the Mediterranean, from Portugal to Turkey. As the Scientific Society of Olive Encyclopedists (4E) points out, it is necessary to return "to conditions of a new balance of the value chain from producer to consumer".
According to the analysis, the extreme climatic conditions (droughts and heatwaves) that hit Spain, the world's largest olive oil producer, in the past two years, have resulted in about 1.5 million people missing from the global supply. Tons. Consequently, these shortages have led to an explosive rise in prices and in turn to a fall in consumption of 30-40%. With the new 2024/25 trade season, Spain is leading global production to the old historical normal levels, resulting in the price adjustment we have seen in recent days.
Prices are constantly adjusted, but according to current data, for the usual qualities of extra virgin olive oils, these range around 5.0-5.40€/kg in all shopping centers (Spain, Portugal, Greece), Tunisia between 4.80-5.20€/kg, Turkey 4.25€/kg the second extras and Italy starting from 9.20 is already at 7.8€/kg, With tomorrow always unknown, waiting for the markets to find the new level of balance between olive grower, industry and consumer.
Soaring price on shelves
Regarding the data concerning Cyprus, it is noted that in October the increase in the price of olive oil (on supermarket shelves) was 56.2% on an annual basis compared to an increase of 13.1% last year, as recorded in the latest consumer price index.
For his part, the President of the Pancyprian Association of Olive Oil Mill Owners, Yiangos Yiangou, speaking to Sigma, said that this year olive oil production is reduced due to drought and high summer temperatures. "Last year we had no rainfall and that continues this year."
Regarding the price of olive oil, he said that it will be at last year's levels and may be slightly lower. He stressed that olive oil in Italy has always been more expensive than other countries because quality olive oil is offered. He also mentioned that the market was filled with mixtures of seed oils and olive oils of questionable quality. "There is no control by state agencies for adulterations and olive oil qualities. I don't know where the situation is heading."
Mr. Yiangou noted that 35 years ago olive oil was more expensive than today. "It was £100 per 20 litres." In addition, he said that due to reduced production there are olive mills that are underfunctioning. "Every 2-3 years you will hear that an olive mill is closing. The industry is facing a lot of problems."
