`Committee Calls for Slowed Olive Oil Production - Olive Oil Times

Committee Calls for Slowed Olive Oil Production

May. 21, 2010
Daniel Williams

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European Copa-Cogeca Committee Pleads for the Slowed Production of Olive Oil to Rescue World Prices

Copa-Cogeca, the Committee of Agrarian Organizations and European Cooperatives, voted June 1 to sup­port a plan of pri­vate ware­hous­ing in order to recal­i­brate an olive oil mar­ket in seri­ous dif­fi­culty. In the same vein, they called for urgent mea­sures to res­cue the olive indus­try which has also suf­fered greatly in the past year.

The com­mit­tee, which rep­re­sents a spec­trum of European grow­ers, deemed it nec­es­sary to imple­ment a pri­vate ware­hous­ing plan, some­thing experts con­sider a much health­ier alter­na­tive to a plan of pub­lic inter­ven­tion. The plan rewards com­pa­nies that ware­house their prod­uct instead of dis­trib­ut­ing it, thereby con­tain­ing the over­all olive oil sup­ply and the­o­ret­i­cally, dri­ving prices back up to a favor­able level. The Copa-Cogeca com­mit­tee is advo­cat­ing firmly for this plan in order to appro­pri­ately adjust the world mar­ket to cur­rent costs of pro­duc­tion. They claim prices are out­dated after being fixed for a decade and need to address cur­rent losses in the sec­tor. The prices of the world olive oil sec­tor fell 15.2% in 2009.

Pekka Pesonen, Secretary General of the orga­ni­za­tion, assured that it would be nec­es­sary to imple­ment these mea­sures to avoid the very cause of the cur­rent crises the olive oil indus­try is suf­fer­ing at present. She also acknowl­edged sim­i­lar issues among olive grow­ers and affirmed that the dis­e­qui­lib­rium of power in the food chain” has rever­ber­ated through­out the European Union and has grossly affected the strength of olive-based indus­try. The Copa-Cogeca com­mit­tee also noted that the global mar­ket has not rewarded the var­i­ous invest­ments by the major­ity of com­pa­nies that have been designed to improve the qual­ity of the olive oil prod­uct.

With the intent of improv­ing this sit­u­a­tion, European grow­ers have asked for the imple­men­ta­tion of the pri­vate ware­hous­ing pro­gram, but warn that in the long-term the mar­ket will need struc­tural change and other forms of assis­tance. They have peti­tioned for coop­er­a­tive efforts to guar­an­tee and pro­vide rewards for the qual­ity of an olive prod­uct. Copa-Cogeca is also advo­cat­ing label­ing meth­ods which high­light the nutri­tional value of olive oil along with pro­mo­tional cam­paigns designed to inform con­sumers about the health-giv­ing qual­i­ties of olive based prod­ucts.

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