For the First Quarter of 2022
Russia's war in Ukraine is having an impact on global prices and inflation. The supply shortage is affecting European supermarkets as well and Spain is no exception. As a result of the decrease in sunflower oil imports from Ukraine, Spaniards are gravitating toward olive oil. Sunflower oil from Ukraine accounts for almost 40% of Spain's total imports, or 400,000 tonnes. Because of the strong demand for alternative olive oil, the price of the commodity has risen throughout the country. Spain produces more of the commodity than it uses, and a third of its virgin and refined oil production is exported. Olive oil prices have held constant for the previous seven months, but drought in southern Spain and increased production costs have raised concerns about the long-term trend. The average price of a litre of extra virgin olive oil in the second week of January was 3.30 EUR, while that of virgin grade was 3.10 EUR and that of lampante was 2.90 EUR.
For the Fourth Quarter of 2021
Even if imported olive oil is more expensive than domestic oil, for example, the idea that pricing was a significant barrier in the Chinese market is no longer true. Recognizing the benefits, people are ready to spend a few more yuans on higher quality items rather than on cheaper indigenous oil. The health and virtue advantages of the commodity are a major reason for its appeal among Chinese consumers. Indeed, it is high in vitamin E and has no preservatives due to its natural origins. Additionally, it is used to reduce the risk of coronary disease, cancer, and inflammation, as well as to prevent cardiovascular disease and high cholesterol.
Extra virgin olive oil prices in the Spanish market declined slightly from 425 EUR/100Kg to 400 EUR/100Kg. Demand from non-European nations was increasing, resulting in a predicted rise of 860k MT in 2021 to 949k MT in 2025 in total EU olive oil exports to countries outside the union. Olive oil prices in Italy and Greece remained constant throughout the quarter at a value of 300 EUR/100Kg.
For First, Second and Third Quarters of 2021
Olive oil imported from Spain was priced between 70 and 200 RMB/L in China. Its average price was 98 RMB/L (USD 16.1), which was much more than the average price of the remaining cooking oils.
Exports climbed by 3% from October 2020 to June 2021, compared to the same period the previous year. Exports to the United States increased by 4%, which was lower than projected, with trade volumes slowing in the final three months.
Extra virgin olive oil prices in Italy remained constant for the first two quarters (450 EUR/100Kg) post which it slowly declined for the next two quarters reaching a value close to 400 EUR/100Kg by August end whereas the prices in Spain and Greece increased the January value of 250 EUR/100Kg to 300 and 320 EUR/100Kg respectively by the end of second quarter.
Brazil is South America's largest importer. Around 87,900 MT of olive oil and 117,330 MT of table olives are imported. Argentina (54%), Egypt (27%), and Peru are its top suppliers of table olives (10%). In terms of oil, 88% comes from Portugal, Spain, Italy, and Greece, with the remaining 12% coming from Argentina and Chile. Chile, South America's second-largest producer, produced 25,500 MT of olive oil, a 13% increase over 2020. Because of increased olive plantation, production in Chile may continue to rise. The country currently has approximately 22,152 hectares of olive groves.
For the Year 2020
With the high demand for the commodity across the Asia Pacific region, especially in high population countries like China and India, continuous growth in olive oil prices was observed during the third quarter of 2020, followed by a fall in prices in these regions. It was estimated that the consumption of the commodity in China in the 2020/21 crop year would reach 66,000 tons, up from 57,500 MT in 2018/19. Of that amount, China purchased 58,500 MT and produced 7,500 MT
While the price of culinary oils such as peanut, soybean, or rapeseed oil fluctuates between 10 and 20 RMB/L (or $1,5 and $3), the price of olive oil is around tenfold that, ranging from 100 to 200 RMB/L (or $16 to $32).
Spain is the world's biggest producer, exporter, and consumer of this product. It accounts for about half of global output; other notable producers include Italy, Greece, and Portugal. This is due to olive growing, which is one of the most important industries in these nations due to the Mediterranean diet. Greece, Spain, Italy, and Portugal are the principal producers and exporters in the region. Italy dominates the industry in terms of imports. Olive oil prices in Spanish market were close to 250 EUR/100Kg which remained constant for the rest of the year with a slight increase of 75 EUR/100Kg in December.
In Italy, extra virgin olive oil prices were 400 EUR/100Kg during October which increased to 450 EUR/100Kg by the end of the year.
Domestic usage of the commodity in the United States was around 386,000 MT in 2020, representing a 178,000 MT growth over the previous two decades. An overall upward trend in its use was noticed, with some seasonal swings. The general price in the region increased with minor changes in August. In 2020, olive oil sales surged. Overall, the category increased by more than 25%, and household penetration increased by the most in a decade (up to 43%). Although the high price of olive oil in comparison to rival cooking oils has historically been the primary impediment to boosting olive oil use in the United States, many customers overcome their price sensitivity in 2020. This was due to a shift in how many customers saw the value-to-price ratio.
Peru leads the way in olive production, accounting for 189k MT in 2018. This was followed by Argentina, which accounted for 175k MT in 2018, thereby accounting for the second largest proportion of South American production. Chile is the third largest shareholder. In 2020, the average virgin olive oil import price was 4,017 USD/MT, down 11.5% from the previous year.
Procurement Resource provides latest prices of Olive Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Olive Oil for several regions around the globe, which are as follows:
About Olive Oil:
Olive Oil is a liquid fat obtained from olives. With the melting point -6°C, boiling point 700°C and smoke point 190-215°C, 175°C, and 210°C for extra virgin, virgin, and refined olive oil, respectively, it is the most common vegetable oil. People who consume an olive oil rich diet appear to have a higher life expectancy along with lower chances of dying from cardiovascular disease. Fresh olive oil has a pungent, fruity smell, while rancid olive oil has little smell or may smell like crayons or stale peanuts. It has a bitter taste with no fruitiness.
Olive Oil is produced through the extraction of oil present in olive drupes. The oil is produced in the mesocarp cells, and stored in a specific kind of vacuole called a lipo vacuole. The extraction process involves separation of oil from other fruit contents, that is, vegetative extract liquid and solid material. This separation can be attained by physical means alone, that is, oil and water do not mix.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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