`Growers and Producers in Jaén Could Lose €1B Due to Poor Harvest - Olive Oil Times

Growers and Producers in Jaén Could Lose €1B Due to Poor Harvest

By Daniel Dawson
Aug. 26, 2022 12:52 UTC

The Jaén chap­ter of Cooperativas Agro-ali­men­ta­rias, Spain’s lead­ing agri­cul­tural coop­er­a­tive, esti­mates that the world’s largest olive oil-pro­duc­ing province could lose up to €1 bil­lion in the com­ing olive har­vest if cur­rent con­di­tions remain the same.

The orga­ni­za­tion said the province would pro­duce 230,000 tons of olive oil in the com­ing crop year, sig­nif­i­cantly down from the 499,796 tons pro­duced in the 2021/22 crop year, rep­re­sent­ing 38 per­cent of all Spanish olive oil pro­duc­tion.

See Also:Olive Harvest in Valencia Predicted to Fall by 75 Percent

Higinio Castellano, the pres­i­dent of Cooperativas Agro-ali­men­ta­rias Jaén, blamed the extreme drought from which the region is suf­fer­ing for the poor har­vest expec­ta­tions. He added that the prob­lem could become even worse if no rain falls between now and the start of the har­vest.

Although Jaén expe­ri­enced a sim­i­lar har­vest in the 2014/15 crop year, the worst year for pro­duc­ers in the past decade, Castellano warned that this year’s pro­duc­tion drop would have more pro­found eco­nomic impacts.

Production costs have risen sig­nif­i­cantly in 2022, fueled by increas­ing prices for fer­til­izer, phy­tosan­i­tary prod­ucts and energy prices. As a result, Cooperativas Agro-ali­men­ta­rias has called on Spain’s fed­eral gov­ern­ment to lower taxes on these inputs ahead of the start of the har­vest in October.

Castellano added that water use restric­tions have also impacted the province’s rain­fed groves and called on author­i­ties to lift a ban on water canons in non-irri­gated groves.

The esti­mates from Cooperativas Agro-ali­men­ta­rias come soon after Deoleo, the world’s largest olive oil bot­tler, announced a sig­nif­i­cant decline in prof­its and local author­i­ties in Jaén approved a €10 mil­lion employ­ment plan to off­set wages lost by olive pick­ers this har­vest.

Spain’s ongo­ing drought has also slowed the sector’s momen­tum. In July, olive oil sales reached 135,000 tons, 13 per­cent above the same month in 2021.

Olive oil exports fueled a trade sur­plus in the first half of 2022 in Andalusia, the autonomous com­mu­nity in which Jaén is located. Producers and bot­tlers exported €1.3 bil­lion of olive oil in the first five months of the year, an increase of about 23 per­cent com­pared with the same period in 2021.

For their part, pro­duc­ers have already adjusted their prices, which are 15 per­cent higher than they were a year ago, to make up for what will almost cer­tainly be a poor har­vest.


Related Articles