`Rising Olive Oil Exports Fuel Trade Surplus in Andalusia - Olive Oil Times

Rising Olive Oil Exports Fuel Trade Surplus in Andalusia

Aug. 10, 2022
Daniel Dawson

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Producers and bot­tlers in Andalusia exported more than €1.3 bil­lion of olive oil in the first five months of 2022, an increase of 22.7 per­cent com­pared with the same period in 2021, accord­ing to data from Extenda.

The pub­lic export and for­eign invest­ment com­pany found that Andalusian exports account for about 74 per­cent of all Spanish olive oil exports by value in the first half of 2022. Extenda added that 61 per­cent of those exports com­prised extra vir­gin olive oil

I believe that, prob­a­bly, the price at ori­gin could increase, and it would be nec­es­sary to see if the con­sumer is will­ing to pay it. At the moment, they are.- Rafael Pico Lapuente, exe­cuitve direc­tor, Asoliva

Rising olive oil export val­ues have been part of a trend in Andalusia’s wider agri­cul­tural sec­tor. The sig­nif­i­cant increase has helped fuel the autonomous com­mu­ni­ty’s pos­i­tive trade bal­ance, which has seen exports out­pace imports by more than €1 bil­lion so far this year.

Overall, Andalusia has exported more than €18 bil­lion worth of goods and prod­ucts, rep­re­sent­ing 31 per­cent year-on-year growth and reach­ing the high­est level since stan­dard­ized data began to be col­lected in 1995.

See Also:Olive Oil Trade News

The pos­i­tive trade fig­ures from the first half of 2022 fol­low the south­ern autonomous com­mu­ni­ty’s strong per­for­mance in the pre­vi­ous year. 

Local media hailed 2021 as a record year, with Analdusia export­ing more than €21 bil­lion in the first nine months of the year. Once again, olive oil exports led the way but were closely fol­lowed by exports of other fruit, veg­eta­bles, legumes and ani­mal and veg­etable oils.

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Rafael Pico Lapuente, the exec­u­tive direc­tor of the Spanish Association of Olive Oil Exporting, Industry and Commerce (Asoliva), said a sim­i­lar uptick in olive oil exports by value had also been recorded in the rest of Spain.

He told Olive Oil Times that the increases in exports by value were mostly the result of ris­ing prices at ori­gin. Lapuente added that national olive oil exports by vol­ume fell by 16 per­cent in the first quar­ter of 2022 and were down by 6 per­cent in the first half of the year. 

Another fac­tor con­tribut­ing to ris­ing prices may be the Russian inva­sion of Ukraine, which has led to a spike in the prices of sun­flower oil, pro­vid­ing olive oil pro­duc­ers a bet­ter chance to com­pete at favor­able prices.

The price of sun­flower oil has increased notably, and the dif­fer­ence between the two is smaller,” Lapuente said. The con­sumer, aware of the ben­e­fits of con­sum­ing olive oil, has decided to buy olive oil instead of sun­flower oil.”

Data from Extenda indi­cated that seven of the top 10 export des­ti­na­tions for Andalusian olive oil expe­ri­enced sig­nif­i­cant growth,” defined as an increase of more than 19 per­cent.

Italy remained the lead­ing mar­ket for Andalusian olive oil, import­ing €359 mil­lion in the first five months of the year, a 28.5‑percent increase com­pared to the same period in 2021. 

The United States remained the sec­ond-largest mar­ket for Andalusian olive oil, import­ing €261 mil­lion from January to May, a 38-per­cent increase. 

Lapuente attrib­uted Andalusia’s strength­en­ing posi­tion in the U.S. mar­ket to the five-year sus­pen­sion of tar­iffs imposed by the U.S. on some Spanish olive oil exports as a result of the trade dis­pute about sub­si­dies to U.S. and European Union air­craft man­u­fac­tur­ers.

Country
Value
% Increase
Italy
€359 mil­lion
28.5
United States
€261 mil­lion
38
Portugal
€130 mil­lion
-
France
€93 mil­lion
40
United Kingdom
€42 mil­lion
72
China
€39 mil­lion
19.7
Japan
€38 mil­lion
0.7
Germany
€35 mil­lion
94
Australia
€31 mil­lion
4.1
Mexico
€29.3 mil­lion
46
Top 10 export des­ti­na­tions for Andalusian olive oil from January to May 2022 (Source: Extenda)

Extenda data indi­cated that Germany is the fastest grow­ing mar­ket for Andalusian olive oils, with a 94 per­cent increase in the first five months of 2022, import­ing €35 mil­lion. 

The United Kingdom was the sec­ond fastest grow­ing mar­ket, expe­ri­enc­ing a 72 per­cent increase after import­ing €42 mil­lion.

Lapuente attrib­uted this increase to a post-Brexit recov­ery of trad­ing rela­tions between Spain and the U.K. since the lat­ter for­mally left the E.U. in January 2020. However, he added that olive oil exports to the U.K. remained well below pre-Brexit lev­els.

Outside of the tra­di­tional European and North American mar­kets, Andalusian olive oil exports by value also grew sig­nif­i­cantly in China, Japan, South Korea, Australia, Mexico and the United Arab Emirates.

While some experts and offi­cials have warned that olive oil pro­duc­tion is likely to drop sig­nif­i­cantly in Spain as a result of the coun­try’s ongo­ing drought, La Puente believes that there is poten­tial for exports to con­tinue increas­ing in value.

We will have to wait to know how the har­vest goes,” he said. In prin­ci­ple, the esti­mated pro­duc­tion of 1,350,000 tons plus the stock of 450,000 tons will pro­vide suf­fi­cient avail­abil­ity of olive oil for national con­sump­tion and export.” 

I believe that, prob­a­bly, the price at ori­gin could increase, and it would be nec­es­sary to see if the con­sumer is will­ing to pay it,” he con­cluded. At the moment, they are.”



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