Business

Olive Oil Production in Spain Sets Record

Spain’s Ministry of Agriculture, Fishing and Food reported that olive oil production in Spain reached 1.77 million tons through March of the 2018/19 campaign, an increase of 43 percent compared with the same period in the previous campaign.

May. 2, 2019
By Rosa Gonzalez-Lamas

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Spain’s Ministry of Agriculture, Fishing and Food has reported that olive oil pro­duc­tion reached 1.77 mil­lion tons for the first half of the 2018/19 cam­paign — a record figure.

This marks a 43-per­cent increase for the same period in 2017/18 and 49-per­cent higher than the aver­age yields of the last four cam­paigns.

The 2018/19 cam­paign has been pro­lific in Spain in other aspects as well.

See more: Spanish Olive Oil Production

Domestic and inter­na­tional sales have already reached 753,300 tons, an 18-per­cent increase from last year’s fig­ures over the same period. Average monthly sales for the first half of the 2018/19 olive cam­paign have reached about 125,550 tons.

Provisional data for March also esti­mated that 485,400 tons of olive oil have already been exported, a 24-per­cent increase over last year. March alone had a very pos­i­tive per­for­mance as exports were 50-per­cent greater than those of March 2018.

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However, the poten­tial for tar­iffs on European Union olive oil exports to the United States could dampen these fig­ures moving for­ward. Last year, Spain exported 35,323 tons of olive oil to the U.S. and many in the sector were hoping to increase this market share in light of poor har­vests in other com­peti­tor coun­tries.

On the domes­tic front, Spanish olive oil pro­duc­ers increased their sales, having sold 267,960 tons, which rep­re­sents a nine-per­cent increase over last year’s fig­ures and is three-per­cent higher than the aver­age of the past four years.

Average monthly sales for the domes­tic market have been 44,650 tons for the first half of the year. This good per­for­mance has led to many pro­duc­ers sell­ing some of their stock, which they expect to increase by 48 per­cent com­pared with last year due to the good har­vest.

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Spain is expected to make up 75 per­cent of the European Union’s olive pro­duc­tion and 50 per­cent of the global pro­duc­tion this year, com­pen­sat­ing the decreases other top olive pro­duc­ing coun­tries in the European Union expe­ri­enced.

Andalusia, Castilla La Mancha and Extremadura were the top three pro­duc­ing provinces in Spain.

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Recently, the European Commission expressed its con­cern for the sig­nif­i­cant decrease of olive oil prices despite a rather stable pro­duc­tion for the 2018/19 olive cam­paign. Due to this, the Commission will mon­i­tor the prices of olive oil in Spain and other member coun­tries.

Although prices in Spain are below aver­age inter­na­tional olive oil rates, they have remained rather stable in the last few weeks.

Production of table olives increased by four-per­cent in 2018/19 in com­par­i­son to last year’s num­bers, but have expe­ri­enced a slight decrease in sales, due mostly to lower sales in the domes­tic market.

Total sales of table olives within Spain have gone down three-per­cent with respect to those of last year.