Olive oil and table olive imports to Brazil continue to rise, further establishing Latin America’s largest country as an important market for both products.
According to the latest data from the International Olive Council, in the first five months of the 2020/21 fiscal year – between October and February – Brazil imported 11-percent more olive oil and olive pomace oil than the previous year, up to 11,052 tons from the previous 8,330 tons.See Also: Trade News
IOC data shows that eight percent of all olive oil exports are destined for Brazil. Only the United States and European Union import more.
Furthermore, shipments of ‘virgin’ and ‘extra virgin’ olive oil to Brazil are fueling the country’s rising imports, quickly outpacing those of non-virgin olive oils and olive pomace oil, which remain largely unchanged.
Since Brazilian imports began their steady increase in 2015/16, virgin and extra virgin olive oil shipments to Brazil have risen by 113 percent. Total olive oil and olive pomace oil imports only grew by 81 percent.
“Brazil has a repressed demand for good quality products, and whenever the economy is good, people will buy more of those, regardless of the origin,” Sandro Marques, an expert on the Brazilian olive oil market, told Olive Oil Times in a 2018 interview.
“However, not all consumers that buy imported olive oil can afford Brazilian olive oil, which is usually at least 50 percent more expensive than a typical imported oil,” he added.
As olive oil imports to Brazil continue to rise, the country’s main trading partners have remained mainly the same. Portugal remains Brazil’s leading trading partner, exporting a record 69,211 tons across the Atlantic in 2019/20, representing roughly two-thirds of all olive oil shipments to the country.See Also: The Best Olive Oils from Brazil
Furthermore, volumes of olive oil shipped from Portugal to Brazil have been growing over the years more than those of any other producing countries.
In the 2013/14 fiscal year, Portuguese olive oil accounted for slightly less than 59 percent of exports at 43,073 tons. That figure has since risen to 66 percent.
Spain, Argentina and Chile remain the next largest exporters to Brazil, with shipments from Spain and Argentina hitting record-highs in 2019/20.
Oils from major producers, including Italy, Tunisia and Greece, continue to make up a much smaller fraction of Brazilian imports. However, shipments from both Italy and Tunisia also hit record highs in 2019/20.
Meanwhile, table olive imports to Brazil have increased even more rapidly over the same time period, rising from 9,890 tons in 2019/20 to 14,700 tons in 2020/21, an increase of 21 percent.
These figures indicate that Brazil is the destination of 18.7 percent of the world’s table olive shipments. Argentina, Egypt and Peru remain the largest suppliers of table olives to Brazil.
However, complications arising from the Covid-19 pandemic along with a poor harvest saw imports from Argentina fall for a third consecutive year. Exports from Egypt and Peru remain mostly steady.