Business

Higher Production in Spain Leads to Lower Prices

Olive oil production in Spain has increased by 33 percent compared to the previous campaign. Sales have increased compared to previous years as well.

Mar. 7, 2019
By Eduardo Hernandez

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Olive oil pro­duc­tion in Spain has increased sig­nif­i­cantly com­pared with former cam­paigns, accord­ing to data released by the Ministry of Agriculture, Fisheries and Food, with a total of 1,417,400 tons of oil pro­duced in the month of January.

The total amount of olive oil pro­duced rep­re­sents a 33-per­cent increase with respect to the pre­vi­ous cam­paign and a 36-per­cent aver­age increase in the last four weeks.

According to data released on January 31, the total volume of olives milled was recorded at 7,467,273 tons, with an aver­age output of 18.98 per­cent, plac­ing it slightly more than a point below other fig­ures from the same dates of pre­vi­ous cam­paigns. According to the data, the 2018/19 cam­paign sur­passes those of the past by one-third.

See more: Spain Olive Oil News

In the last three months, sales have increased as well, with 139,700 tons of olive oil mar­keted in January. That quan­tity has allowed the cur­rent cam­paign to reach max­i­mum levels, ele­vat­ing the total volume that has been sold to 488,200 tons. This is due to the the increase in demand of the domes­tic market, as well as increas­ing exports.

The pro­vi­sional data for imports, recorded in the month of January, are esti­mated at 63,400 tons. There has been a 12-per­cent increase of exports in com­par­i­son to the pre­vi­ous cam­paign, with the interim data from January esti­mated at 307,100 tons. This also rep­re­sents a nine-per­cent increase in rela­tion to the pre­vi­ous four cam­paigns.

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Sales in the domes­tic market have increased by seven per­cent com­pared to the pre­vi­ous cam­paign and two per­cent com­pared to the pre­ced­ing four cam­paigns.

Meanwhile, the total lead­ing stocks of mills and bot­tling plants in the world’s largest pro­ducer of olive oil has increased to 1,368,200 tons, which is the max­i­mum quan­tity recorded for this month in com­par­i­son to the same month in pre­vi­ous cam­paigns.

The price of olive oil in Spain con­tin­ues to decrease as well, and there has been a 30-per­cent aver­age decrease in mid-February, in com­par­i­son to the same period of the pre­vi­ous year.

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The aver­age price for olive oil in Spain is around €2.38 ($2.68) per liter, in con­trast to the €3.70 ($4.59) price that was recorded in February 2018. Refined pomace olive oil had the biggest price decrease, a total drop of 42 per­cent, with the cur­rent price stand­ing at €1.26 ($1.42). Lampante oil and refined oils follow with a 33-per­cent decrease, sit­u­at­ing them at €2.20 ($2.47) and €2.50 ($2.81), respec­tively.

Virgin olive oil had one of the lowest price decreases, which fell by 30.8 per­cent and is cur­rently priced at €2.37 ($2.67). Extra virgin oil prices decreased by 25 per­cent, falling to €2.68 ($3.01) per liter.

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