Source: Oleoscope (Russia)
The supply of olive oil in Europe could increase significantly next year as Spain resumes production after a period of drought, Olive Oil Times reports, citing the European Commission.
EU olive oil production in the 2024/25 marketing year is expected to increase by 31% to 2 million tons, 9% above the 5-year average, as a poor harvest in Italy is offset by higher production in Spain, Greece and Portugal.
In Spain, production will increase by 48% to 1.26 million tons this year compared to 2023, thanks to spring rains that encouraged early olive development.
Authorities warned that the final harvest will depend on weather conditions in the coming weeks, but “prices will be lower than in 2023 as volumes are almost double those of last year”. Olive oil prices reached record levels after two poor harvest years, but have now fallen by 20 percent as yields have improved. However, prices for consumers will not fall until much later. Last year, oil producers received €10/liter, but prices have now fallen to €8/liter and continue to fall.
The European Commission expects olive oil consumption in the EU to increase by 7% in the 2024/25 marketing year, after falling by 22% in the last two years, and that the resumption of supply will lead to further price reductions.
The European Commission also expects EU olive oil exports to increase by 10% and imports to fall by 7%, but good harvests in competitor countries (Tunisia and Turkey) could slow down the rebalancing of trade.
According to OleoScope, Spain has reduced its olive oil shipments to Russia by more than a third to 5.9 thousand tons by September this year, Greece from almost 1.5 thousand tons to 951 tons. Deliveries from Tunisia totalled 292 tons, after the country had previously declared its intention to take over up to 10% of the domestic olive oil market.