Olive oil: The European market observatory was launched – What is the EU’s goal?
The European Olive Oil and Table Olive Market Observatory was launched in Brussels, which is expected to be an important weapon of the Commission, in order to promote olive oil market transparency and cooperation in the olive sector.
As olive oil in the European Union plays a vital role in the global market, the launch of the observatory will mark an important step towards addressing the sector’s challenges.
According to the Commission, the European Olive Oil and Table Olive Market Observatory will serve as a platform for discussion and cooperation between experts representing the entire supply chain, from producers to exporters. This new observatory will be modeled after the market observatories that already exist for several agricultural sectors, notably milk, crops and fruit and vegetables.
By collecting and evaluating data and statistics, the observatory will produce reports and provide market information that will be accessible to all stakeholders.
“The outlook for the 2024/25 marketing season appears more promising, with olive oil production expected to return to average levels, however, ongoing challenges are likely to keep prices high for several months”
Olive oil’s rich heritage
As the largest producer, consumer and exporter of olive oil in the world, the European Union is deeply invested in the success of this key agricultural sector. With a rich cultural heritage and a significant impact on rural communities, olive production is vital to the EU’s rural landscape
However, recent weather extremes, such as droughts, fires and unusual temperatures, have affected olive production in the EU, resulting in a decline of 24% below the five-year average in the last harvest.
According to the latest data, the production of olive oil in the E.U. for the 2023/24 marketing season reached 1.5 million tonnes, an increase of 8% compared to the previous year. This decline is largely due to the combination of two back-to-back bad harvests, which have affected the entire supply chain, pushing prices to record levels.
The impact was felt throughout the supply chain, affecting not only producers but also exporters and consumers. This also resulted in a significant reduction in EU olive oil stocks
“The outlook for the 2024/25 marketing season appears more promising, with olive oil production expected to return to average levels, however, ongoing challenges will likely keep prices high for several months,” the Commission points out.