The current year is being proved as one of the best for the Greek olive oil, as, according to Agrotypos’ reportage, the producers’ prices have recently surpassed the 4.25 euros and continue their upwards trajectory. Indeed in Messinia, South Peloponnese, the price climbed to 4.30 euros per kilo satisfying producers who have stored their production until nowadays.
The low olive oil production in the basic olive producer countries during 2014-2015 resulted in high prices for Greek producers. Specifically, in Messinia transactions have recently been carried out at 4 euros per kilo producer’s price for direct payment and at 4.30 euros per kilo for gradual repayment.
Meanwhile, in Corinth, North-East Peloponnese, transactions have been carried out for 3.90 euros per kilo to the producer, while there were cases of 4.20 euros per kilo for Italian dealers.
Since mid-July, prices are rising in Spain too, reaching for extra virgin olive oil the 4.21 euros per kilo on the 20th of August. It’s worth noting that the General Secretary of the Union of Small Farmers of Andalusia (UPA) characterizes the situation as “remarkable” and claims that it has been caused due to the recent low production in Spain.
This year’s considerable output in Greece has intrigued international Bloomberg agency even stressing that “as the October start of the olive harvest approaches, some Greek producers and entrepreneurs “see” a rare opportunity to take market share from Spain and Italy, the world’s No1 and No2 producers of olive oil”.
“Lousy weather, a mysterious tree disease, and a fruit fly that feasts on olives have decimated olive groves in Italy. Nearly a tenth of the 10 million trees in Puglia are infected with a disease called ‘olive ebola’ which slowly kills the trees and is believed to be caused by the bacterium Xylella fastidiosa”.
“As a result, Italy’s olive oil producers are bracing for another bad season, on the heels of a 34% decline in output in 2014-15, to 302,000 metric tons, according to data from the Madrid-based International Olive Council (IOC). Production in Spain fell by more than half, to 825,700 tons, in the most recent season, and will likely remain depressed due to a prolonged drought”, as the Bloomberg’s reportage characteristically noted.
“Greece”, as the article notes, “saw its output more than double in the previous year to 300,000 tonnes and the local industry is hopeful it will be close to that in the coming season. Thanks to this combination of factors, Greek olive oil is more competitive than ever, at least on a price basis. According to a June report from the Council (IOC), wholesale prices for extra-virgin categories from Italy and Spain have surged 114% and 84% this year, respectively, to 5.66 euros and 3.59 euros per kilo. In contrast, prices of Greek oil have climbed just 24%, to 3.09 euros per kilo”.
“The price advantage is helping small and midsize producers who make up most of Greece’s olive oil industry find new markets. The IOC reports Greek exports from the most recent harvest to the U.S., now the world’s top olive oil consumer, rose 28% from October 2014 through June of this year, while exports from Spain and Italy both dropped more than 50% for each country”.