The EU expects a 20% drop in olive oil production in our country
Increased olive oil production by 9%, to 1.5 million tons, the EU sees for this year’s harvest from the 9 largest producing countries in Europe. It is noted that in 2017 and 2021 EU countries produced 2.13 million tons of olive oil on averagewhile last year’s production was the lowest historically recorded in the European Union and did not exceed 1.38 million tons.
Although production is expected to increase slightly this year, prices will continue to move high until at least the spring of 2024argues the Commission, which will affect the consumption of olive oil by households across Europe. Especially in our country, the EU expects a 20% drop in production.
Both Greece and Spain and Portugal, three of the biggest producers in the EU, have experienced production problems this year due to the hot and dry spring. In addition, the summer did not favor production in Spain and Portugal as intense heat and the absence of rainfall greatly hindered fruiting.
In addition, a problem in the supply of olive oil is the absence of last year’s production. This year the year started with 307,000 tons “in storage”, while last year it started with 670,000 tons. Significant help is expected to be provided by imports that will reach 160,000 tons, especially from Tunisia where production is expected to be increased.
The EU notes that the price of extra virgin olive oil from Jaen, Spain, the region that produces the largest amount worldwide, reached €820 per 100 liters at the end of August. A price that is three times higher than the average of the last five years and the highest recorded historically.
Reduced production and high olive oil prices will also affect exports in the coming months as they have already fallen by 40% from April to June this year.
Olive oil consumption is estimated to decline both in the non-producing EU countries and those that do (Greece, Spain, Portugal, Italy, etc.). For the first, estimates speak of a reduction in consumption to 280,000 tons from 290,000 tons last year, while for the rest, consumption will drop from 1.02 million tons last year to 950,000 tons this year. The drop in olive oil consumption in the EU is expected to fall overall by 6% compared to last year.