Jaén’s Association of Young Farmers and Ranchers (ASAJA Jaén) has called on town and local governments to waive property taxes for olive growers and oil producers this year.
Local governments have previously waived these taxes on other occasions, including in years with bad droughts. No local or provincial governments have yet commented on whether they will follow the organization’s recommendations.
“Olive oil is the main source of wealth in the province of Jaén. The collapse of prices that has occurred in the last year has put at risk the viability of many olive farms and the economic capacity of farmers,” ASAJA Jaén said in a statement.
“It is a fundamental measure to alleviate the consequences that the fall in prices that has taken place during the last year has had in its rents and that has already been requested in previous occasions as in periods of drought.”
According to Poolred, an organization that tracks olive oil prices in Spain, average olive oil prices have fallen by nearly 30 percent since this time last year and more than 40 percent since July 2017. At the time of writing, a kilogram of olive oil was selling for an average of €2.18 ($2.46).
Spain’s Ministry of Agriculture, Food and Fisheries is currently negotiating with the European Union to allow the olive oil sector to self-regulate, which proponents say would increase prices by strategically controlling how much olive oil is available in the market.