Olive oil sales in Mendoza doubled this year, mostly to Brazil, Canada, Chile, the United States, Mexico and Spain.
Olive oil exports have quadrupled in the past five years in the Argentinian province of Mendoza, according to government statistics.
The increase in exports in 2017 was, in part, due to the low harvest in 2016 in Spain of fruit destined for the production of olive oil.- José Luis Simone, Olivicola Simone
Producers in the western province exported nearly 10,000 tons of bulk and individually packaged olive oil last year, up from nearly 5,000 tons in 2016.
The main destinations for the olive oil were Brazil, Canada, Chile, the United States, Mexico and Spain. Olive oil producers in the region attribute the increase in exports to bad years for producers in the European Union and a rising demand in Brazil and the United States for olive oil.
“The increase in exports in 2017 was, in part, due to the low harvest in 2016 in Spain of fruit destined for the production of olive oil,” José Luis Simone, the head of Olivicola Simone, said.
Olivicola Simone is an oil producer based in Mendoza. Simone said that an increased demand for canned olive oil and a growing appetite for extra virgin olive oil in California also factored into the increase in exports.
“Here in Argentina, we export plenty of canned oil to Brazil… They are big consumers of canned goods and [we sold more oil] than usual last year,” he said. “In addition, one company in California also imported a lot from us.”
According to ProMendoza, an organization that promotes exports from small and medium-sized businesses, olive oil sales increased by more than 100 percent from 2016 to 2017.
Ana Stoddart, a business intelligence analyst at ProMendoza, said that olive oil exports to Spain and the United States drastically rebounded from last year and made up a majority of the region’s increase in exports.
“The national exports of olive oil [to Spain and the US] have grown at rates above 100 percent,” she said.
The exported oil has increased in quality as well. Last year’s exports were worth approximately $3,900 per ton compared with the $3,400 per ton in 2016.
“In terms of quality, Mendoza produced oil that falls well within the International Olive Council regulations,” Simone said. “Our very high oil quality standards are especially appreciated by the North American market.”
Stoddart attributed the augmented exports to the increasing standard of the oil’s sensorial qualities, which is sought after by olive oil consumers.
“The organoleptic properties of oils is exceptional with very good public acceptance,” she said. “The outlook for the sector is positive.”
This optimism for the future is widespread in the province. Simone sees the growing demand for higher quality extra virgin olive oil in North America as very favorable for Mendoza, provided producers can keep up.
“As more and more extra virgin olive oil is consumed, it will cause a more aggressive demand for fruit from the oil industry in the future,” he said.
However, Nicolás Piazza, the head of international negotiations at ProMendoza, warned that future demand will not solely be dictated by oil quality.
“When these variations in exports occur, it is due, in part, to the harvests, but also has to do with the performance of the international markets,” he said.
Piazza believes that producers in Mendoza must concentrate on South American markets, such as Chile and Brazil in order to maintain their forward momentum.
“In 2018 we will focus on continuing to position Mendoza in large Brazilian markets and encourage sub-exploited regional markets,” he said.
More articles on: Argentina, exports, import/export
Jul. 26, 2023
Europe Confirms Steep Decline in Olive Oil Production
In the bloc’s latest short-term agricultural outlook report, E.U. experts said the poor harvest and low stocks will keep pressure on prices.
Jul. 31, 2023
Despite Drought, Uruguay Anticipates Record Harvest
Official statistics have not been published yet, but a preliminary estimate puts the harvest at a record-high 3,000 tons.
Jun. 5, 2023
Farmers and Consumers React to Rising Olive Oil Prices
As drought pushes production prices up across the Mediterranean, farmers and consumers adapt.
Sep. 14, 2023
Olive Oil Prices Soar on Drought and Poor Harvests, Impacting Consumers Worldwide
Olive oil prices are soaring due to drought and poor harvests in major producing countries with varying impacts in different regions.
May. 11, 2023
Kalinjot Monovarietal Places Albanian Olive Oil on World Stage
Andrew Strong hopes the Gold Award at the NYIOOC for an organic endemic monovarietal will catch the world’s attention.
Aug. 10, 2023
Andalusian Producers Seek Deeper Trade Ties with Japan
Olive oil consumption has risen steadily in the world’s third-largest economy over the past 30 years, and Andalusian producers are seeking to grow their market share.
Nov. 1, 2023
Turkish Olive Oil Exports Can Make Up for Europe's Deficit Once Ban Is Lifted, Official Says
Turkey has reserves of 180,000 tons and is slated to produce another 180,000 in the current harvest that could meet European demand for bulk olive oil.
Feb. 23, 2024
After Bumper Harvests, a Sharply Lower Yield in Argentina
An ‘off-year’ harvest, lack of chill hours, and extreme weather events are expected to reduce the yield by as much as 40 percent.