Argentina’s Olive Oil Industry In Crisis

Unlike the country’s wine industry, which benefits from a strong internal market, the olive oil industry in Argentina is largely export-based, with 75 percent of the roughly 30,000 metric tons of oil produced annually being sold abroad. The table olive market is even more lopsided, exporting about 95 percent of its yearly production.

With the costs of production rising, Argentine olive oil exports are struggling to compete on the world stage. While production volume has remained more or less constant, exports are down and there’s not a big enough internal market to absorb the difference. The resulting surplus and lackluster sales have pushed the industry into a desperate situation, with layoffs and factory closings becoming the norm, particularly among the larger producers.