New estimates where published at Teh European commission for olive oilwith data including production volume, price and inventory developments as well as consumer and trade trends.
It appears from these data that in Greece the producers collect the lowest prices, while at the same time the consumers buy it at the most expensive prices.
According to a new publication by the EU’s Directorate General for Agriculture, the current estimate for the new crop says that Greece will reach 250,000 tons.
As far as prices are concerned, their downward trend can be seen in all markets, but with great intensity in Greece and Spain, and in Italy they are correcting but at a light pace and are already at higher levels self:
The prices for extra virgin olive oil in Greece, in November, are at 5.33 euros per kilogram, and in Spain at 6.15 euros and in Italy at 8.61 euros.
Price reduction and survival difficulty for producers
The price of olive oil for producers this year reaches 5.50 to 6 euros per kilo, while last year they were between 8 € and 8.50 € per kilo.
Despite the increase in production, most fear that this reduction in prices will not ultimately reach the consumer’s pocket.
Interview with Olive Oil Expert: Navigating the Current Market Trends in Greece and Europe
Editor: Welcome to Time.news! We’re here today with Dr. elena Papadopoulos, an expert in olive oil production and market trends. Dr. Papadopoulos, recent data from the European Commission for Olive Oil has raised concerns about the olive oil market in Greece. Can you provide us with insights on the current situation?
Dr. Papadopoulos: Thank you for having me! Indeed, the latest estimates reveal that Greece will produce around 250,000 tons of olive oil this crop year. While this increase in production sounds promising, it’s overshadowed by significant challenges related to pricing and market dynamics.
Editor: That’s interesting. The data indicates that while producers in Greece are receiving the lowest prices, consumers are paying more. Can you explain this discrepancy?
Dr. Papadopoulos: Yes, it’s quite a concerning trend. Producers in Greece this year are seeing prices between 5.50 to 6 euros per kilogram, a notable drop from last year’s 8 to 8.50 euros per kilogram. However, despite this reduction, consumers are facing prices of 5.33 euros per kilogram in November. It means that while production costs have decreased, the savings are not filtering through to consumers. This situation is further complicated by the fact that consumers in Spain and Italy are paying 6.15 euros and 8.61 euros respectively for their olive oil.
Editor: How is this downward trend in prices impacting producers’ survival, particularly in Greece?
Dr. Papadopoulos: The drop in prices is leading to significant survival difficulties for producers.Many fear that as production costs remain relatively high and selling prices are low, their profit margins will diminish further. This situation creates a challenging surroundings where producers might face financial hardship, making it unsustainable to continue operations in the long run.
Editor: That sounds troubling. What are the broader implications for the olive oil industry in Europe?
dr. Papadopoulos: The implications are multifaceted. Firstly, the overall profitability of olive oil production in southern Europe—especially in Greece and Spain—could decrease, leading to fewer new entrants in the market. additionally, we could see a rise in imports of cheaper oils, which may hurt local producers even further. The quality perception of extra virgin olive oil may also be at risk if the price variations cause confusion among consumers.
Editor: Considering these challenges, what practical advice can you offer to both consumers and producers in this market?
Dr. Papadopoulos: for consumers, it is crucial to understand the impact of price on quality. Buying local and seeking out reputable producers could ensure higher quality and support local economies. For producers,diversifying their products,improving branding,and focusing on quality could distinguish them in a competitive market. Establishing direct-to-consumer sales channels can help reduce reliance on fluctuating market prices.
Editor: thank you,Dr. Papadopoulos, for shedding light on these significant issues facing the olive oil market. Lastly,what should we be keeping an eye on moving forward?
Dr. Papadopoulos: Monitor the ongoing price trends and consumer behavior closely, especially as we approach the holiday season, which historically increases olive oil consumption. Additionally, watch for any policy changes from the EU that might support local producers or regulate pricing practices to ensure fair trade within the market.
Editor: Thank you once again for your insights, Dr. Papadopoulos. Your expertise is invaluable as we navigate the complexities of the olive oil market.
Dr. Papadopoulos: thank you for having me! I hope this facts helps our readers make informed choices in this evolving market.