European Commission Announces Storage Aid

Nov. 14, 2019
By Isabel Putinja

Recent News

The European Commission adopted a new mea­sure Monday to pro­vide aid to EU pro­duc­ers for the stor­age of olive oil. The mea­sure was intro­duced in response to an imbal­ance in the EU olive oil market with regard to supply and demand, and a fall in price as a result.

Prices have fallen recently in Spain, Greece and Portugal due to an excess in supply fol­low­ing the 2018/19 har­vest. In mid-October, the price of extra virgin olive oil in Spain was 33 per­cent below the five-year aver­age, while in Greece the price was 13.5 per­cent lower.

Olive oil stocks in the EU are esti­mated to be cur­rently at 859,000 tons, with Spain hold­ing 88 per­cent. This is expected to increase once the 2019/20 har­vest is com­plete. In order to relieve pres­sure on the EU olive oil market, it is hoped that the pri­vate stor­age scheme will help to sta­bi­lize it.