` Price for Italian Extra Virgin Olive Oil Drops to '09 Levels - Olive Oil Times

Price for Italian Extra Virgin Olive Oil Drops to '09 Levels

Jan. 17, 2012
Julie Butler

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A 20 per­cent hike in olive oil imports by Brazil, 11 per­cent by the EU, 7 per­cent by the USA and 5 per­cent by Canada off­set falls in Japan (-12 per­cent) and Australia (-10 per­cent), accord­ing to the International Olive Council’s fig­ures for the 2010/11 crop year.

Released on Monday in the IOC’s December newslet­ter, the fig­ures show that the year from October 2010 to September 2011 was also notable for sig­nif­i­cant drops in reported pro­ducer prices.

By December last year, the pro­ducer price for extra vir­gin olive oil in Italy had fallen to €2.43/kg, down 18 per­cent on December 2010 and down 40 per­cent from last sum­mer’s peak. And while Spain’s pro­duc­ers started ahead of those in Greece — with €2.43/kg ver­sus €1.94/kg — in December 2010, by last month their for­tunes had been reversed after a 11 per­cent price drop in Spain, to €1.79/kg, and 5 per­cent in Greece, to €1.84/kg.

Meanwhile the pro­ducer price for refined olive oil dropped 10 per­cent in Spain, to €1.65/kg, and 9 per­cent in Italy, to €1.79/kg.

Table Olives

Table olive con­sump­tion is fore­cast to rise 8.3 per­cent to 2.38 mil­lion tons in 2011/12, with the EU tak­ing a 26 per­cent share, fol­lowed by Egypt (13 per­cent), Turkey (12 per­cent) and the USA (10 per­cent). Global con­sump­tion has risen an aver­age of 4 per­cent every crop year for the last ten years, nev­er­the­less this crop year kicked off with 703,500 tons in table olive stocks — up a mas­sive 45.4 per­cent on the pre­vi­ous year — and is expected to end with 729,000 tons.

World table olive pro­duc­tion leader Egypt is poised to deliver 500,000 tons in 2011/12, nearly a fifth of expected global pro­duc­tion, which is expected to rise 5.1 per­cent to 2.56 mil­lion tons this crop year. Spain, the next biggest pro­ducer, should account for 482,100 tons.

Average pro­ducer prices have under­gone a note­wor­thy fall” in Italy (-25 per­cent), Morocco (-11 per­cent) and Greece (-30 per­cent) since 2009, the IOC reports.

World sur­vey

The IOC also made pub­lic this week its deci­sion to award the €91,000 con­tract for a global sur­vey of olive oil pro­mo­tion to Madrid-based Agerón International, a mar­ket research and inter­na­tion­al­iza­tion processes con­sul­tancy.

Chosen from a field of three, its brief is to pro­duce the equiv­a­lent of a world­wide Who’s Who of olive oil pro­mo­tion.

The IOC says the knowl­edge gath­ered will help all indus­try mem­bers define oppor­tu­ni­ties, gaps to fill and mar­kets to explore; and to avoid dupli­ca­tion.

Click here to view the newslet­ter PDF.



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