World Olive Oil Production Drops Sharply

The International Olive Council said total olive oil production will drop by fourteen percent.

Dec. 5, 2016
By Reda Atoui

Recent News

World olive oil pro­duc­tion is expected to go down by four­teen per­cent dur­ing the 2016/2017 cam­paign, accord­ing to the International Olive Council (IOC).

Members of the IOC par­tic­i­pated to the 18th meet­ing of the orga­ni­za­tion’s Economic Committee in Madrid between November 22 and November 25 to dis­cuss olive oil pro­duc­tion, prices, and global mar­ket trends.
See Also:Complete Coverage of the 2016 Olive Harvest
The IOC’s pro­duc­tion fore­casts state that world olive oil pro­duc­tion could drop by as much as four­teen per­cent, reach­ing 2,713,500 tons, with mem­bers of the IOC gen­er­at­ing 2,519,000 tons.

European mem­bers of the IOC are expected to pro­duce 1,923,000 tons dur­ing the 2016/17 sea­son, a 17 per­cent decrease com­pared with the last cam­paign.

Spain is expected to see its pro­duc­tion decrease by 6 per­cent (to reach 1,311,000 tons), Greece should expe­ri­ence a 19 per­cent decrease (260,000 tons), Italy a whop­ping 49 per­cent decrease (243,000 tons), and Portugal’s will drop 14 per­cent (93,600 tons).

Italy has faced severe cli­mate con­di­tions and pest inva­sions in 2016. Other European coun­tries have been hit with drought and pests as well.


Production is also expected to drop in non-European mem­bers of the IOC, namely in Tunisia, Morocco, Algeria, Jordan, Lebanon, Argentine, and Libya. On the other hand, pro­duc­tion is expected to rise in Turkey (+24 per­cent), Egypt (+8 per­cent), Israel (+7 per­cent), and Albania (+5 per­cent).

The IOC report also offers an analy­sis focus­ing on the evo­lu­tion of olive oil prices.

In Spain, a kilo­gram of extra-vir­gin olive oil cost €3.37 ($3.59) as of late November, a 10 per­cent increase com­pared with last year. It cost respec­tively €5.75 ($6.13) in Italy, €3,46 ($3.69) in Greece, and €3,68 ($3.93) in Tunisia (which rep­re­sent increases of 70, 21, and 12 per­cent respec­tively). Prices have risen sharply dur­ing the last few weeks.

World olive oil con­sump­tion is expected to go down by one per­cent in 2016/2017 to reach 2,904,000 tons. The drop in yield lev­els implies an increase in prices, which leads to a decrease in con­sump­tion.

Last month, the IOC par­tic­i­pated in the 22nd ses­sion of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP22) that was held in Marrakech, Morocco from November 7 to November 18.

In a con­fer­ence call with its mem­bers, the IOC show­cased numer­ous stud­ies that proved that olive grow­ing has pos­i­tive effects on the envi­ron­ment and that the adop­tion of appro­pri­ate agri­cul­tural prac­tices helps to increase the capac­ity for atmos­pheric C02 seques­tra­tion in per­ma­nent veg­e­ta­tive struc­tures (bio­mass) and in the soil.”

A sci­en­tific con­sen­sus has now been reached that olive trees have a pos­i­tive car­bon bal­ance and that they have a real pos­i­tive impact and offer a real envi­ron­men­tal ser­vice to soci­ety,” the IOC said.

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