Olive oil stocks in the European Union have fallen by nearly a quarter since the end of the 2018/19 crop year, according to the latest data published by the 27-member trading bloc.
The Directorate-General for Agriculture and Rural Development of the E.U. estimates stocks will fall to 603,113 tons by the end of the current crop year, a decrease of 23 percent compared to last year.
The decreasing stocks will come as good news for producers, many of whom have been suffering from persistently low olive oil prices. Experts have partially attributed these low prices to the high olive oil stocks of the previous two years.
Ending stocks in the 2018/19 crop year surged to their highest levels since 2006/07. This was largely fueled by relatively stable production throughout the E.U. coupled with declining rates of consumption.
E.U. olive oil stocks remain highest in Spain, which is predicted to have 505,700 tons left over at the end of the crop year. Ending stocks in Italy are estimated to be 55,000 tons, while Greece is expected to have 40,800 tons of leftover olive oil.
Production in the three countries is expected to be 1,120,000 tons, 365,000 tons and 275,000 tons, respectively.
Overall olive oil production in the trading bloc will reach 1,917,991 tons by the end of the crop year and consumption will fall to 1,377,695 tons. By the end of the previous crop year, the E.U. produced 2,400,000 tons and consumed 1,495,000 tons of olive oil.