Market Trends of Europe Olive Industry
Rising Imports of Olives
Price sensitivity among buyers significantly influences the demand for olives, a commodity. This sensitivity is further affected by fluctuations in climate and trade conditions in major producing countries. In response, governments and associations in these countries have rolled out various support policies and programs. These include timely tax rebates and subsidies for olive growers, aimed at stabilizing production levels and covering variable costs during challenging times.
In Europe, olive imports are surging and most of the European countries predominantly source their table olives from within Europe, with less than 30% of imports coming from developing nations. Most of these imports from developing countries are bulk-packed olives, which are subsequently repackaged for final sale. Additionally, some olives are traded between producing nations to bolster domestic supplies. For instance, Italy, while being the third-largest producer in Europe, also stands out as a leading importer. According to the ITC Trade Map, in 2022, Portugal led as the top importer with 39.5%, followed by Spain at 25.9% and Italy at 10.2%. However, in 2020, European imports of table olives saw a decline, primarily due to a 90 thousand metric tons drop in European production during the 2019-2020 season. Looking ahead, as the demand for olives and olive products, including table olives and olive oil, continues to rise, imports into European countries are projected to surge during the forecast period.
Spain Dominates the Market
According to the US Department of Agriculture, olives rank as Spain's second most-produced crop, trailing only grains. Key olive-producing regions include Andalucia, Castilla-La Mancha, Extremadura, Catalonia, Aragon, and Valencia, consistently contributing a significant portion to the nation's annual olive output.
Spanish olive growers employ three primary farming techniques: traditional, intensive, and super-intensive. The country boasts a diverse olive portfolio, featuring varieties such as corrupt, manzanilla cacerena, farga, manzanilla, lechin de sevilla, and cornicabra. With advancements in technology, there's a notable shift towards intensive farming methods, boosting the nation's olive production. This momentum is anticipated to shape olive yields in the coming years. In 2023, Andalusia's olive sector, alongside Spanish public institutions, secured a 139,000-hectare privately-owned land segment, now recognized by UNESCO, to enhance profitable olive cultivation. Given the surging demand for olives in both international export markets and domestic consumption, Spain's olive production is poised for growth in the forecast period.
