He olive oil virgen extra could become around 20 cents more expensive in Aprilreaching the 5,50 euros per kilogram for the producer, if this month does not receive rainfall. This is the forecast of the Union of Small Farmers, whose general secretary for the province, Miguel Cobosclaims that the current price is about 5.30 euros per kilogram, the highest since 2012, when it also exceeded five euros, and is about two euros above that registered a year ago.
the extra virgin It was listed at 1.80 euros at the beginning of 2020, as this professional recalls. However, forecasts of a poor harvest caused prices to start climbing last summer. At the moment, “they cover production costs and leave a profit margin that is not very high, because production costs have risen and it has been a very bad year. The price increase does not compensate for the 50% drop in production compared to the last campaign”, affirms the general secretary of UPA.
On the other hand, this situation has motivated a decrease in consumption in Spain of around 20%. Miguel Cobos comments that the “high prices” have led some customers to buy other, cheaper greases. “When the price is lower, we approach 600,000 tons and when it is more expensive, we work our way up to 500,000 tons of domestic consumption,” he details.
Thus, regarding oil stocks, this professional recalls that 400,000 tons remained as campaign link, 700,000 have been produced (in Córdoba, 145,000) and Spain is importing oil from Algeria, Tunisia, Egypt or Portugal. “We carry more than 200,000 imported tons so far this campaign, which began in October. We can still import more,” he advances.
With that, internal consumption is guaranteed and foreign sales are attended. “Spain has consolidated markets abroad and will have no problem supplying them,” she points out. In this line, he admits that exports are maintained, but “they are also affected” by the high prices. Regarding the forecasts for the prices for the coming weeks, the UPA Secretary General emphasizes that “the oil sector is very sensitive to any movement. If it rains in April and a good flowering is expected, the price falls gently. If the forecasts are worse for the next campaign, it goes up”. In this way, he estimates that “it is now at 5.30 euros per kilogram for the producer, in bulk. If it rains it can go down to 5.20 or 5.10 euros, but if it doesn’t rain, it can go up about 20 cents“.
In the store, from 6 euros
Regarding the effects of this increase on the supermarket shelf, Miguel Cobos indicates that “sometimes (the establishment) absorbs the increase and other times it takes time to arrive, because has bought at previous prices”. In any case, extra virgin olive oil can already be found from six euros per kilogram in the store, although the highest qualities, within this category, they sell between 8 and 10 euros per kilogram, depending on factors such as product packaging.
never seen prices
On your part, Macarena Sanchez del Aguilamanager of the Asociación Almazaras Industriales, explains that “it is possible that prices continue to rise. If it doesn’t rain, the coming campaign will sufferwe are going to have a problem”, he affirms. However, he anticipates that “it forecast rain for the end of the following week and, in that case, prices will probably stagnate.”
This professional points out that the price of extra virgin at source is 5.2 euros per kilogram; the virgin is at 4.87 euros and the lampante has no price because there are not enough operations. A year ago, according to poolred index, the extra virgin was at 3.48 euros; the virgin, at 3.38 euros; and the lampante, at 3.18 euros.
Macarena Sánchez del Águila acknowledges that “It is not known how much the price can rise. What the consumer is willing to pay.” However, he points out that “in the transformative producer sector we consider that the best we can have are stable prices and that they do not exceed the normal price much. These prices have never been seen before.” In this regard, he recalls that “the last excessive price increase was in pesetas and reached 700 pesetas. These sharp rises have not occurred until nowbut the production conditions have caused them, because not enough oil has been produced to supply the needs of the market”, he details.