Olive Oil: Global market updates

The report of the campaign 2016/17

According to IOC estimates the world production of olive oil in the countryside 2016/17 would be down by 20% compared to the previous season with a to 2.539 million tons 1 where the part of the IOC member countries expect 93% (2350500 tons). In the EU production fell by 25%, nevertheless, the first four producers were Spain (1,286,000 tonnes), Greece (195,000 tonnes), Italy (182,300 tonnes) and Portugal (69 400 tonnes). Outside the EU, production fell in the Maghreb countries (- 15%) in Morocco, (-29%) in Tunisia, (-23%) in Algeria and (-11%) in Libya. In contrast, East production levels recorded increases of (+ 18%) in Turkey, (+ 21%) in Egypt and (+ 9%) in Lebanon. World consumption of 2,803,000 tons during the season decreased by 6% compared to the 2015/16 result of a reduction of (-12%) in the EU countries including Greece (-25%), France (-17%), Italy (-14%) and Spain (-7%) and multiples recorded elsewhere including Turkey (+ 34%), Brazil (+ 19%), China (+ 13%), Australia (+ 7%).

The 2017/18 campaign forecast

The latest forecast 2 of the 2017/18 campaign is based on global production in the growth of 14% compared to 2016/17, or 2,894,000 tonnes, where almost 94% would return to IOC member countries. Production in the eurozone is up 3% with 1,805,000 tons with successively from first to fourth place Spain (1 090 500 tonnes and -15%), Italy (320 000 tonnes and + 76%), Greece (300 000 tonnes and + 54%) and Portugal (78 800 tonnes and + 14%). Outside the EU, production would also be in Turkey (287 000 tonnes and + 62%), and in the Maghreb countries is Tunisia (220 000 tonnes and + 120%), Morocco (140 000 tonnes and + 27%), Algeria (80 000 tonnes and + 27%) and Libya (18,000 tonnes and + 12%). As for world consumption, she would believe 5% is estimated at 2 954 000 tonnes.

The producer prices of the 2017/18 campaign

Average prices for the production of extra virgin olive oil from the first three of the campaign2017 / 2018 have thus varied in the first four world exporters to know :
– In Spain: After starting at € 3.71 / kg in October 2017, prices fell in € 3.59 / kg in November to reach € 3.57 / kg in December 2017. Compared to the same period of the previous year the prices of December 2017 however increased by 4%.
– In Italy, prices fell to € 3.99 / kg at the end of December 2017 after having successively reached € 5.3 / kg and € 4.8 / kg in October and November, showing a decline of 29% in December 2017 compared to the same period last year.
– In Greece of € 3.88 / kg in October, prices stabilized at € 3.33 / kg in November and December 2017 is a -4% slide from the same period of 2016.
– In Tunisia, as in previous countries, producer prices have fallen steadily from € 3.68 / kg to € 3.53 / kg and to € 3.48 / kg from October to December 2017 thus regressing by 5% report to December 2016.

Tunisia and its potential competitors

Although threatened with being caught up by some competitors (Morocco, Syria, Turkey) level of production, Tunisia’s exports still remain above placing among the leading pack on a global scale. Its national consumption with an average of 33 thousand tons over the last decade gives it an exportable volume significantly higher than that of its competitors in view of its large population much smaller and the quality of its product (conf fig 2-3-4-5 2016/17 data provisional 2017/18 estimates are estimated)

Tunisian olive oil storms the Japanese market

The Fund for the promotion of the Olive Oil Conditioned “FOPRHOC” will start, in 2018, the execution of a program aiming at the development of the Tunisian exports of the olive oil towards Japan to reach 5% of the consumption of this country, against 0.5% currently, said the president of the National Union Chamber of Olive Oil Exporters under the UTICA, Abdessalem Loued.

Speaker, Monday, during a seminar on the theme “Japan: A demanding market but with high potential”, Loued added that Tunisia will have to develop its exports of olive oil to Japan that do not currently exceed 1 million dinars, considering the importance of this market whose annual average consumption is more than 59 thousand tons.

The CEO of the Export Promotion Center (CEPEX) Aziza Htira, for its part, said that this day of information is an opportunity to better know the trend and needs of the Japanese market in olive oil and intensify the efforts to improve our positioning on this country.

“The Tunisian participation in the annual International Food and Beverage Fair (Foodex) taking place in this country is no longer sufficient,” she said.

Htira pointed out that in addition to the meeting with importers and sommeliers of Japanese olive oil, there are bilateral meetings between Tunisian and Japanese professionals, to identify partnership relations and schedule visits to some Tunisian oil mills…

The manager emphasized the possibility of satisfying the demand of this market and exporting an olive oil that meets the tastes of the Japanese.
The president of the Japan Association of Olive Oil Sommeliers, Toshiya Tada, emphasized that the good quality of Tunisian olive oil allows him to access the Japanese market.

He added that even Italy and Spain, the world’s leading olive oil producers, are seeking access to the Japanese market.

Tada explained that the Japanese consumer is looking for a rich taste and aromatic foods (hot pepper and ginger …).

He pointed out in this context the lack of quality olive oil on the Japanese market, seen 80% of the olive oil is marketed under a fuzzy label “extra virgin olive oil”.

The sales manager of the CHO group (the subsidiary of Ulysse Agro Industries), which specializes in the production and packaging of olive oil in Sfax, pointed out that the positioning on the Japanese market requires significant investments and quality certifications. , stressing the need for state intervention to facilitate the establishment of Tunisian companies in Japan and the marketing of their products.

Tunisia, which has more than 85 million olive trees on an area of ​​2 million hectares, aims to produce, in 2018, nearly 240,000 tons of olive oil and export 180,000 tons, according to the CEPEX indicators.

Over the last ten years, packaged Tunisian olive oil has grown from 1 thousand tons in 2006 to 23 thousand tons in 2016.

Tunisia is now the second largest producer of olive oil in the world after Spain and exports to 54 international markets.