Spain's largest olive oil cooperative and its Moroccan partner have acquired 20 percent of the company partially responsible for U.S. tariffs on Spanish olives in an effort to avoid paying them.
Dcoop and its Moroccan partner, Devico, have purchased a 20 percent stake in the California-based table olive producer, Bell-Carter, Inc.
We will ship our product from Spain, but the oxidation process for the production of the black olives will take place (in the U.S.), so they will be exempt from the payment of the tariffs.- Antonio Luque, Dcoop
“With this agreement, Dcoop strengthens its position in the U.S. table olive market, boosting the commercialization of the production of its 26 associated entities that currently stands at around 100,000 tons,” the cooperative wrote in a press release on its website.
According to sources close to the cooperative, if “everything works out as planned” Dcoop and Devico will increase their ownership stake in Bell-Carter to 50 percent in the coming years.
Colleen Morris, the general manager of Bell-Carter, told Olive Oil Times that the California-based company was not open to selling an additional stake to the Spanish cooperative.
“Bell-Carter Foods has sold a 20 percent stake of the company to Dcoop to secure the deal and has no plans to increase this equity position,” she said.
The acquisition is widely seen as an effort for Spain’s largest cooperative of olive oil producers to avoid the tariffs imposed on Spanish table olives by President Donald Trump. According to Antonio Luque, Dcoop’s president, the cooperative will ship the black olives to the United States and allow them to oxidate there.
“We will ship our product from Spain, but the oxidation process for the production of the black olives will take place [in the U.S.], so they will be exempt from the payment of the tariffs,” Luque said.
Angelique Hardin, a spokeswoman for Bell-Carter, denied that this was the case stating that the sale was an opportunity for Bell-Carter to immediately increase their ripe olive volume.
Bell-Carter was one of the two companies that lodged an anti-dumping complaint to the U.S. International Trade Commission, which was one of the factors that led to the Trump Administration’s 37.4 percent tariff on black olives.
In Spain, the effects of the tariffs have already been felt. According to the Spanish Association of Exporters and Industrialists of Table Olive (Asemesa), Spanish table olive exports to the U.S. had fallen by 40 percent in the first five months of 2018, compared with the same period last year.
“Our position, as part a of Asemesa, on tariffs is the same and we will continue to fight for their elimination, but this is a business operation,” Luque said.
“We have confidence in increasing sales of Bell-Carter in the coming years, that would also mean increasing our production by 10,000 or 20,000 tons for export to the U.S.”
Dcoop currently exports about 7,700 tons of black and green olives to the United States, both packaged and in bulk. Of this total, 4,400 tons are black olives and subject to the 37.4 percent tariff. The cooperative estimates that it will soon send more than 33,000 tons to the United States via Bell-Carter, making up half of Dcoop’s and Devica’s current table olive sales.
As part of the deal, Dcoop and Devica will exclusively supply Bell-Carter with their olives. “[The plan] is to carry all the olives that can be brought from here to the United States, either in bulk or packed,” Luque said.
Acorsa USA, an American subsidiary of Dcoop, will also be “integrated” into Bell-Carter’s structure.
According to Luque, the aim of the purchase is to follow the Pompeian model. Pompeian is the largest American importer of olive oil and is also half-owned by Dcoop and Devico.
More articles on: import/export, table olives
Aug. 14, 2023
Tunisia Has a Plan to Boost Its Olive Oil Industry
The strategy aims to increase annual production of extra virgin olive oil while growing packaged exports and domestic consumption.
Jun. 12, 2023
Tracking the Rise of Olive Oil in Japan
The rising quantity and quality of olive oil production in Japan presents opportunities for local farmers as well as European exporters.
Jul. 5, 2023
DCOOP Reports Record Olive Oil Sales at Annual Meeting
While revenues were up, the general director of the world’s largest olive oil cooperative said farmers had not seen significant gains in profitability.
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.
Nov. 20, 2023
Finding Balance in a Changing Sector Yields Success for Portuguese Exporter
Quality serves as Est. Manuel Silva Torrado’s north star as the company navigates export markets and the country’s rapidly changing sector.
Jun. 27, 2023
Domestic Olive Oil Sales in Spain Remain Strong as Exports Fall
While demand for olive oil remains strong despite high prices, some in the sector worry there will not be enough stock if there is another poor harvest.
Jun. 13, 2023
The Best Olive Varieties for Hobby Growers in Northern California
Whether it is for ornamental purposes or for small-scale table olive or oil production, these olives are perfectly suited to Northern California backyards.
Feb. 19, 2024
Major Changes in Argentina Provide Hope for Producers
The election of a conservative government has provided some producers with hope that Argentina’s economic situation – along with their own – will begin to improve.