- Graph 1 tracks the weekly movements in the prices paid to producers for extra virgin olive oil in the three top EU producing countries plus Tunisia while Graph 3 shows the weekly changes in the producer prices for refined olive oil in the three main EU producers. The monthly...
Graph 1 tracks the weekly movements in the prices paid to producers for extra virgin olive oil in the three top EU producing countries plus Tunisia while Graph 3 shows the weekly changes in the producer prices for refined olive oil in the three main EU producers. The monthly price movements for the same two grades of oil are given in Graphs 2 and 4.
Extra virgin olive oil: Producer prices in Spain started to rise in November 2014. After peaking at €4.23/kg in the third week of August 2015, they switched direction and began to drop, gathering momentum from the last week of September (Graph 1). This downward movement started later in Spain than in Italy. In recent weeks prices started to rally and were lying at €3.30/kg by the last week of January 2016. This is 1 pc higher than a year earlier and 68 pc higher than the low recorded in the third week of May 2014 (€1.96/kg), but 22 pc below the maximum (€4.23/kg).
Italy: In the week from 10 to 16 November 2014, producer prices in Italy hit their highest level since the last decade, reaching €6.79/kg. After some fluctuations, they started to fall sharply, only to pick up to €3.47/kg by the end of January 2016, although this level was still 42 pc lower than a year earlier. Graph 2 shows how the monthly prices of extra virgin olive oil have behaved in recent crop years.
Greece: In the last weeks of August and first week of September 2015, prices rose to period highs (€3.54/kg). After holding steady for a while, they dipped only to level off later at €2.96/kg at the close of January 2016, 2 pc down on the same period a season earlier.
Tunisia: Producer prices peaked in the last weeks of August 2015 (€4.13/kg). Then, like elsewhere, they started to drop, but later switched back upwards. At the end of January 2016, they were lying at €3.28/kg, showing period-on-period growth of +12 pc.
Refined olive oil: After peaking in August 2015, producer prices for refined olive oil followed in the footsteps of extra virgin prices. In Spain where they started to drop ahead of elsewhere, they fell sharply but started to rally in recent weeks to stand at €3.18/kg in late January 2016, showing an increase of 12 pc on the same period of the preceding crop year. The trend in Italy has been similar, with prices lying at €3.15/kg at the end of January 2016. This level was 11 pc higher than the same period the season before. No price data are available for this product category in Greece.
At the end of January 2016, the price of refined olive oil (€3.18/kg) and extra virgin olive oil (€3.30/kg ) differed by €0.12/kg in Spain whereas in Italy the gap between the two categories was wider (€0.29/kg – Graph 3).
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- WORLD TRADE IN OLIVE OIL At the close of the 2014/15 crop year, which ran from October 2014 until September 2015, sales of olive oil [olive oils (customs heading 15.09) and olive pomace oils (15.10)] showed a season-on-season increase for Japan (+10 pc), where heavy import growth...
WORLD TRADE IN OLIVE OIL
At the close of the 2014/15 crop year, which ran from October 2014 until September 2015, sales of olive oil [olive oils (customs heading 15.09) and olive pomace oils (15.10)] showed a season-on-season increase for Japan (+10 pc), where heavy import growth began in March 2015, steady levels in the United States and China and decreases in Russia (-33 pc), Australia (−21 pc), Brazil (-8 pc) and Canada (−7 pc).
At the season end, intra-EU acquisitions were down by 3 pc on the previous crop year whereas extra-EU imports showed a steep 293 pc rise. This situation was prompted by the heavy drop in production in Spain and Italy in 2014/15, which obliged these countries to look for supplies elsewhere, especially in Tunisia. As a result, Spanish imports from Tunisia soared by 1071 pc and Italian imports by 330 pc. As reported in the previous issue of this newsletter, this upward movement in imports from Tunisia began in December 2014 and stemmed from its record harvest in 2014/15, which positioned it as the world’s top exporter that season.
Start of the 2015/16 crop year
The new 2015/16 crop year opened with lower trading in olive oil and olive pomace oil in most of the eight markets listed below. In the first two months of the crop year (October and November 2015), the only exception was China where imports were up by 4 pc. The other markets showed large decreases of 38 pc in Brazil, 36 pc in Australia, 18 pc in Canada, 13 pc in Japan and 6 pc in the United States.
Trade data for Russia were only available for the month of October and show a decrease of 58 pc compared with the same month of the previous season. This situation calls for close monitoring to check whether these negative results are merely one-off decreases or whether they are indicative of a trend.
Preliminary analysis suggests that they may be due to various factors such as the repercussions of prices in the previous crop year, strategic purchasing by importers and the fact that new season oil was not yet ready for export. Whatever the case, it will be necessary to keep close tabs on the figures in the coming months. The October 2015 figures for EU trade1 reveal a decrease of 27 pc in intra-EU acquisitions but an increase of 161 pc in extra-EU exports versus the same period of 2014/15.
Start of the 2015/16 crop year
In October and November 2015, the first two months of the 2015/16 crop year, table olive imports behaved differently in the six markets reported below, showing increases in the United States (+19 pc) and Canada (+17 pc) and decreases in Brazil (−26 pc) and Australia (−6 pc). Only October 2015 data were available for Russia and showed a decrease of 39 pc on the same month of the previous season.
The EU2 trade data for the first month of the season (October 2015) report an increase of 6 pc in intra-EU acquisitions and a decrease of 23 pc in extra-EU imports compared with the same period a year earlier.
Source: International Olive Council MARKET NEWSLETTER No 101 – January 2016VN:F [1.9.22_1171]VN:F [1.9.22_1171]
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- Over the last two decades, US imports of olive oil and olive pomace oil have increased almost two and a half times, rising from 125 000 t in 1993/94 to 311 000 t in 2014/15 (Chart 1). In this month’s issue we will look at how imports have evolved over time in terms of the grades...
Over the last two decades, US imports of olive oil and olive pomace oil have increased almost two and a half times, rising from 125 000 t in 1993/94 to 311 000 t in 2014/15 (Chart 1). In this month’s issue we will look at how imports have evolved over time in terms of the grades of olive oil imported and container type.
In 1993/94, product packaged in containers < 18 kg accounted for 88 pc of US imports but by 2014/15 this share was no more than 58.2 pc. Sales of packed oils have therefore lost 29.8 points to bulk oils. Italy was the source of 72 pc of the 125,000 t imported in 1993/94, with imports split between virgin olive oil (22 pc), olive oil (50 pc) and olive pomace oil (1 pc). The remainder came largely from Spain (9 pc), Greece (3 pc) and Turkey (2.5 pc).
In 2014/15, when US imports totalled more than 311 000 t, the trend had reversed and more olive oil was being imported in bulk than in bottles. Since 2000/01 there has also been a move towards quality among US consumers. This is shown by the fact that in 1993/94 virgin olive oil had a 32 pc share of total imports. In 2014/15 this share had expanded to 67 pc (Chart 2).
As mentioned above, 58.2 pc of the oil imported into the United States in 2014/15 was in containers 18 kg, of which 19 pc was from Spain, followed by Tunisia (13 pc), Morocco (3 pc), Argentina (2 pc), Italy (1.6 pc), Chile (1.5 pc) and the rest of the countries. Virgin olive oil was the most popular grade for imports in this category of container (24 pc of the total, of which 17 pc extra virgin, 5 pc organic extra virgin and 2 pc virgin).
Thirteen per cent belonged to the olive oil grade and 4 pc was olive pomace oil. Chart 4 plots the trend of US imports of the two chief categories of product – virgin olive oil (150910) and olive oil (150990) – by container size over the past 20 crop years. Notably, until 2001/02, packaged olive oil was in greatest demand (150990 < 18 kg) but this trend then switched and packaged virgin olive oil (150910 < 18 kg) is now predominant.
The five-season trend of US imports by country of origin and container size between 2010/11 and 2014/15 is reported in Table 1. The picture that emerges is a 17.9 pc increase in bulk imports, contrasting with a loss in bottled shared (−0.41 pc). The four top suppliers of packaged product by order of volume are Italy, then Spain, Tunisia, Greece and Turkey. In the bulk ranking, Spain is the leader, followed by Tunisia, Morocco, Argentina and Italy. Spain therefore clearly dominates the bulk market and is making inroads in packaged product, which is still led by Italy although it has lost ground in volume terms over the period reviewed.VN:F [1.9.22_1171]VN:F [1.9.22_1171]
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