Spanish Olive Oil Exports Plummet 42% After Prices Soar

The volume of Spanish olive oil exports fell by 41.55% during the first half of the year compared to the same period in 2023. Spain, the world’s leading exporter, has gone from sending 684,000 tonnes outside our borders to just 400,000. In terms of value, the drop is 18.51% and goes from 4.148 billion euros to 3.380 billion.

The figures compiled by El Independiente from data from the State Secretariat for Trade reflect a collapse following the historic rise in prices caused by an extraordinarily poor harvest in the previous campaign.

By type, the volume of extra virgin olive oil exported fell by 40.1% (from 451,000 tonnes to 270,000), although in value it only fell by 16.3% (from 2.818 billion euros to 2.358 billion euros). Exports of virgin olive oil fell by another 47.3% in volume (from 20,000 tonnes to 10,000) and by 29.3% in value, to 86 million euros.

Spanish olive oil value also dreppoed

The export of Spanish olive oil (non-virgin) also registered a 43.92% drop in volume (from 198,000 tonnes to 111,000) and a 22% drop in value (from 1,124 million to 877 million euros).

Rafael Pico, General Director of the Spanish Association of the Industry and Export Trade of Olive Oils and Pomace Oils ( Asoliva ), says that behind the fall in exports is the price factor, which is penalizing consumption in foreign markets, where it is being replaced by other alternative vegetable fats.

“Olive oil is the healthiest of all, but it is also the most expensive,” he explained. In this regard, he pointed out that price is a determining factor in all new consumer markets such as Asia. Without going any further, he points out that olive oil consumption in China has fallen by half.

This has not happened in other countries with a more established consumer culture, such as the United States or Japan, where it is holding up better. “The US has performed quite well in the current downturn, but there are other markets where consumption has collapsed. Almost all countries have seen a sharp decline,” he added.

Pico, who is also responsible for Foreign Promotion for the Board of Directors of the Spanish Olive Oil Interprofessional , explains that “the American consumer is very sensitive to health issues and has a per capita income that allows them to not pay too much attention to the penny.”

There – a market dominated by Italian oil – Spain has managed to increase exports at a price slightly higher than that of the neighbouring country. And the sector is preparing to become the world’s leading consumer in the coming years.

Spanish olive oil production will grow

And it does so with the increase in Spanish production in mind. After the two-year cycle of drought, the sector expects that the campaign that is about to begin will be much better than the previous ones. And this will help prices to begin to fall around November and December, according to Pico. If Spain reaches 1.6 million tons, it would be close to record figures and would be the third most important in the historical series.

The olive trees have benefited from this year’s rains and even some during this summer. “The forecast is for a medium-high harvest,” Pico points out. And he predicts a “difficult campaign” for the packers, due to the need to adjust purchases greatly in order not to lose money in the event of a fall in prices due to oversupply .

In a normal production year, Spain usually exports 1.15 million tons of olive oil. In 2022, this figure was 300,000 tons and will reach just 750,000. The major importers are already well aware that production will increase . And unlike two years ago – when they brought forward their purchases in the face of the announced shortage – they are now delaying them as much as possible to avoid getting caught out.

Spanish olive oil imports fall

Spain also reduced its olive oil imports in both volume and value during the first half of the year. Thus, it imported 29.41% less in value (from 1.131 billion euros to 798), while in volume it fell by 44.5% (from 213,000 tons to 118,000).

Overall, Spanish exports of goods until June reached 195,105.5 million euros, the second best figure in the historical series for the same period, although 2.4% lower than that recorded in the first six months of 2023. Likewise, imports exceeded 210,927 million euros in the first half of the year, which represents a decrease of 2.5% compared to the same period in 2023.

The trade deficit fell by 3.6% between January and June of this year compared to the same period last year, reaching 15.822 billion euros, according to information provided on Monday by the Ministry of Economy, Trade and Business headed by Carlos Cuerpo.

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First published in  EL INDEPENDIENTE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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