Olive oil sector warns of decrease in consumption due to prices

This 2023 looks “extremely complex”announced Rafael Sánchez de Puerta, president of Cooperativas Agroalimentarias in Córdoba and managing director of Dcoop. After some high levels of commercialization this year, “there is no volume to sustain that number.” And that “will definitely affect everything.” If the production level the last campaign is at the level of 1,500,000 tons, Next will drop to 780,000 ton. The numbers are “definitely low for the needs of our business.”

all-time highs

With “highest prices everAccording to Belén Luque, president of Almazaras Industriales de Córdoba, the industry predicts that demand will fall, although it does not expect any significant new increases in price. The lower the production, the higher the value and, as a result, lower oil consumption. sole beneficiary The reason for the rise in prices, Luque explained, farmer, the one he is happy to see that the bad harvest is compensated. However, “the consumer may look for other substitute oils.”

Regarding prices, the key for Antonio Ruiz, head of Diputación, is the “meeting of supply and demand.” And for this he deems it necessary strong commitment to promotion from institutions. Other components of the table were also pointing in the same direction. Sánchez de Puerta stressed that “in the end, supply and demand must be found”.

So, as Belén Luque adds, “you don’t run out of oil”, but by consuming less, low production is not directly perceived, affects value an expensive product be more scarce. This is “not good news for factories because we will lose a lot of markets.” To this we must add the industrial costs that are “yes or yes” in oil plants and cooperatives. Expenses such as the cost of electricity, which has multiplied as a result of inflation and now appears to be a burden to companies.

One last positive campaign

The scenario predicted by the oil sector, which started to show itself with the start of the 2022-2023 campaign, contradicts the previous good year. This last campaign was “pretty good”, noted Ricardo López-Crespo, vice president of Caja Rural del Sur. Sánchez de Puerta added that the high production coincided with some very acceptable purges. Specifically, about three and a half euros for the farmer.

The year 2022 has experienced constant fluctuations, marked by events such as the war in Ukraine, the carrier strike or the drought. And finally, although the previous campaign closed well in production and marketing beyond market value, some problems such as no rain could have implications for the next year. The December rains celebrated by the industry were a relief, but eyes in the spring.

decline in exports

share earned in the foreign market by the olive oil sector. May be frustrated in 2023. “The price will leave us out,” complained the head of Cooperativas Agroalimentarias. If the production rate was 139,000 tons per month, it could fluctuate between 100,000 and 110,000 next year. On the contrary, Sánchez de Puerta points to something. import growth.

Along the same lines, the president of Almazaras Industriales de Córdoba warned that “decreases in production will be severe”. Luque stated that the problem of scarce harvest is not only in Spain, but also in countries such as Italy, Portugal or Tunisia, apart from Greece. Rafael Sánchez de Puerta added that the low levels of commercialization expected from the oil sector, “industries will suffer“.

But López-Crespo disagrees that exports will be a problem for Cordovan companies next year. To trust United States of America hold a little good foreign sales levels olive oil, because it is “strengthened” by the revaluation of the dollar. Currently, the vice president of Caja Rural del Sur emphasized that the North American country maintains a good level of imports. It also ignores the decrease in exports in the province.