` Olive Oil Prices in Spain Extend Historic Lows at Year-End - Olive Oil Times

Olive Oil Prices in Spain Extend Historic Lows at Year-End

Jan. 6, 2012
Charlie Higgins

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The sit­u­a­tion remains bleak for Spain’s olive oil indus­try, which fin­ished off the year with cas­cad­ing prices, dis­ap­point­ing sales and a cli­mate of panic.

The end of 2011 saw prices tee­ter­ing between €1.66 and 2.55/kilo for extra vir­gin olive oil; €1.56 and 1.68/kilo for vir­gin oil; and €1.52 and 1.56 for lam­pante oil, accord­ing to the Pricing Information System for Olive Oils in Origin (POOLred).

Transactions decreased by 66 per­cent between December 24 and 30, and the aver­age spot price of oil fell to a measly €1.54/ton on December 28.

When com­pared to data col­lected the same week in 2010, the price of extra vir­gin oil was down 5.6 per­cent while low qual­ity oil was down 12.2 per­cent. Overall vol­ume fell by a whop­ping 78.2 per­cent.

Short-term orders of cheap oils sold in small vol­umes con­tinue to set the stan­dard in the indus­try, con­tribut­ing to the pric­ing dips; this trans­lates into low prof­itabil­ity for farm­ers and bot­tlers through­out olive coun­try.

Despite set­backs, indus­try rep­re­sen­ta­tives at the provin­cial and national level have been work­ing to repair the dam­aged sec­tor. In a recent con­fer­ence held in the Valencian province of Castellón, the Provincial Rural Development Council announced plans to inno­vate and improve the local indus­try in 2012.

We’re going to use all of our avail­able tools to develop those ini­tia­tives that will add value to olive oil and boost the sec­tor, from improved effi­ciency to greater prof­itabil­ity,” said Domingo Giner, Deputy of Rural Development.

Among the pro­posed ini­tia­tives were the devel­op­ment of an updated sales strat­egy, aggres­sive expan­sion into the inter­na­tional mar­ket, reor­ga­ni­za­tion of the sec­tor into related clus­ters, and the imple­men­ta­tion of a sec­tor-wide man­age­ment sys­tem.

Domestic pro­mo­tion is a chal­lenge that we need to face head on. Our land, her­itage and high qual­ity local goods, such as olive oil, are what add value to this land and cre­ate wealth in the Castellón inland regions,” said Javier Moliner, President of Castellón Province.

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