However, the Greek market is moving at a sluggish pace due to traders’ reluctance to buy based on their medium-term needs. So far, olive oil prices remain unchanged since last December.See Also: Trade News
Due to the COVID-19 pandemic, the planning horizon has been short-term and does not include the summer months that normally accounted for. As a result, buyers are thinking twice about their every move.
Market sources estimate that transactions will pick up again in the major trading points as soon as the first signs of a market restart are visible, especially in Italy and Central Europe.
Currently, producer prices show a stabilization at slightly more than €2.90 per kilogram in Laconia, with few transactions reaching €3.00 per kilogram, after the Metamorfosi cooperative sold two tanks for €3.10 per kilogram about 15 days ago.
Producer prices are also below the €3.00 ceiling in Crete, with most quantities sold at €2.80 per kilogram. Prices in Messinia are at slightly lower levels too. However, the region is showing somewhat higher mobility compared to neighboring Laconia.
According to market sources, a necessary pre-condition for producer prices to rise above €3.00 is the restaurant sector’s opening and the prospect of tourism picking up again.
By contrast, as long as retail remains the primary outlet for olive oil sales, it is difficult to challenge the price policy imposed by the large chains looking for low-cost olive oil.
Exports of bottled olive oil on the rise
Exports of Greek bottled olive oil to European Union countries jumped from 7,561 tons in 2002 to 26,872 tons in 2019.
This is an increase of 355 percent, according to data from the European Commission’s Directorate-General for Trade, published by Sevitel, the association of Greek bottlers of olive oil.
A corresponding increase is shown in extra‑E.U. exports of standardized Greek olive oil which rose from 7,290 tons in 2002 to 19,807 tons in 2019, representing an increase of 272 percent.
In total, the exports of standard Greek olive oil have grown from 14,851 tons to 46,679 tons, according to data from Sevitel.See Also: The Best Olive Oils From Greece
The largest destination for the exports of bottled Greek olive oil among E.U. countries is Germany, with 10,760 tons. The next biggest destinations are Austria (2,747 tons), Cyprus (1,932 tons), the United Kingdom (1,890 tons), France (1,670 tons), Belgium (1,569 tons) and Sweden (1,222 tons).
Outside of the European Union, the largest market for Greek olive oil is the United States, with exports reaching 9,644 tons in 2019.
This increase in bottled olive oil exports can be attributed to efforts made in the last decade by many small and medium enterprises that produce high-quality olive oil mainly for foreign markets.
The increased share of these predominantly extroverted businesses has also changed the domestic market structure, which was dominated for decades by a handful of large olive oil bottlers and traders that are now incorporated in multinationals’ portfolios.