Argentina has experienced one of its worst olive harvests in recent years, a situation that’s causing a great deal of concern among olive oil producers in Mendoza and neighboring provinces, according to the newspaper Los Andes.
The Institute of Rural Development (IDR) estimated a below average olive harvest of 28,277 MT, representing a 65 percent reduction from last year. Some estimates have pegged this year’s olive oil production at well below 10,000 MT for a country that typically produces around 30,000 MT. Heavy rains are largely to blame for the poor results, while bottom-of-the-barrel international prices have further discouraged producers.
“This year we had one of the worst harvests in twenty years. Olives arriving at the factories from the eastern part of [Mendoza] province for olive oil production have been less than 10 percent of what we processed last year,” said Armando Mansur who owns Olivares de Don Ignacio and presides over the Mendoza Olive Producers Association (Asolmen).
Meanwhile, Spain produced a record 1,758,000 MT of olive oil this year, causing international prices to bottom out. This situation affects prices in Argentina because, although olive oil imports are heavily taxed at 31.5 percent, national producers who raise their prices too much risk losing clients if importing becomes a more attractive option for them.
The combination of these factors have forced a number of producers to close shop indefinitely, a trend that has Marcos Lopez of Eliá very concerned for the future.
“I wouldn’t worry so much in a year like this if a farm didn’t operate because there was no production. What really worries me is that some farms have decided not to reopen. They see no favorable prospects in the medium or long term,” Lopez said.
“One thing is a bad year with a reasonable outlook and another is a bad year with a negative outlook. The latter forces the producer to abandon production altogether, and an abandoned olive grove will never recover,” he added.
Related Articles
Nov. 21, 2023
The Agronomic and Macroeconomic Forces Behind Olive Oil Prices in Italy
Despite an anticipated production rebound in Italy, prices will likely remain high. Farmers will need to adapt to a new reality.
Sep. 25, 2023
Olive Farmers in Puglia Face Catastrophic Harvest After Autumn Storms
The damage to the southern Italian region’s olive trees is expected to drive up prices in the short term and lower production in future harvests.
Oct. 26, 2023
High-Priced Olive Oil Fuels Thefts in Greece, Farmers Respond
Tons of olive oil were stolen from a mill in northern Greece. Meanwhile, producers in Crete are contemplating anti-theft measures such as GPS trackers.
Mar. 6, 2024
US Surpasses Spain as Second-Largest Olive Oil Consumer
Experts predict the U.S. will overtake Italy to become the world’s largest consumer of olive oil.
Apr. 9, 2024
Discovery of Adulterated Olive Oil Kindles Debate Over Testing in Northern Cyprus
High olive oil prices and an import ban by the de facto state have created fertile ground for unscrupulous actor’s in the local market.
Feb. 19, 2024
A Dismal Harvest Concludes in Greece
With the country’s olive oil production almost halved compared to last year, record prices at origin have shaped a market searching for equilibrium.
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.
Aug. 29, 2023
World Olive Oil Competition Southern Hemisphere Live Updates
The NYIOOC World Olive Oil Competition is unveiling award winners in the Southern Hemisphere division of the annual quality contest. Olive Oil Times writers around the world are covering the results and reactions.