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.

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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