`Producer Prices Climb Again in Spain - Olive Oil Times

Producer Prices Climb Again in Spain

Dec. 26, 2012
Julie Butler

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Olive oil prices in Spain finally fell in line with expec­ta­tions and rose last week, though there was not much oil being sold.

With the cur­rent har­vest tipped to be world pro­duc­tion leader Andalusia’s worst in 13 years, the dip in ex-mill prices a week ago was per­plex­ing but they’ve since climbed nearly 8 per­cent, accord­ing to the POOLred price obser­va­tory, which shows the aver­age price at December 21 is €2.56/kg, but sales vol­umes are very low.

Olive Oil Agency (AAO) fig­ures now in for the first two months of this sea­son, October and November, show pro­duc­tion totaled 88,200 tons, which is half of that at the same time a year ago but sim­i­lar to 2010/11.

About 588, 500 tons of olives have been processed, with a yield of 14.98 per­cent, down from 16.67 per­cent last sea­son.

Provisional fig­ures show imports so far total 13,500 tons, more than dou­ble that of the same time last year. Exports for October and November total 135,000 tons and domes­tic demand is down 5 per­cent on last year to 75,600 tons.

Spain’s olive oil stocks are up 77 per­cent on the aver­age for the last four sea­sons, stand­ing at 583,100 tons at the end of November. The vast major­ity is in mills in Andalusia but bot­tlers also hold stocks of 160,100 tons.

Andalusia: worst har­vest in 13 years

Spanish agri­cul­tural union Asaja says it now expects Andalusia’s har­vest this sea­son to total just 560,000 tons, down nearly 60 per­cent on last year’s record of 1.36 mil­lion for the region and its worst since 1999.

Asaja Seville spokesman José Vázquez said ear­lier this week that prices had not yet risen as much as expected due to fac­tors includ­ing lack of liq­uid­ity, and the financ­ing needs of coop­er­a­tives and coun­tries like Greece, which are sell­ing in haste”.


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