Olive Oil and Table Olive Market Observatory is born

According to the European Commission, it marks an important milestone in the Commission's efforts to promote market transparency and cooperation in the olive sector.

The European Market Observatory for Olive Oil and Table Olives will serve as a platform for discussion and co-operation between experts representing the whole supply chain, from producers to exporters.

This new Observatory will follow the model of the Market Observatories that already exist for several agricultural sectors, in particular milk, crops and fruit and vegetables.

Through the collection and evaluation of market data and statistics, the observatory will produce reports and provide market information accessible to all.

According to the EC, given that EU olive oil production plays a vital role in the world market, the launch of this Observatory marks a significant step towards a more informed and proactive approach to addressing the challenges facing the olive sector.

This initiative is part of the Commission's wider efforts to promote market transparency and cooperation in the agricultural sector, ultimately contributing to a stronger and more resilient olive sector.

Leading producer

The EC notes that the European Union, the world's leading producer, consumer and exporter of olive oil, is deeply committed to 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 agricultural landscape.

However, recent extreme weather events such as droughts, forest fires and unseasonal temperatures have taken their toll on olive production in the EU, resulting in a 24% drop below the five-year average for the last harvest.

According to the latest data, EU olive oil production for the 2023/24 marketing year reached 1.5 million tonnes, 8% more than the previous year. This decline is largely due to a combination of two consecutive poor harvests, which had a ripple effect throughout the supply chain, eroding stocks and pushing prices to record levels.

The impact was felt throughout the supply chain, affecting not only producers, but also exporters and consumers. This has also led to a significant reduction in EU olive oil stocks.

In contrast, the outlook for the 2024/25 marketing year looks more promising, as olive oil production is expected to return to average levels, however, current challenges are likely to keep prices high for several months.

For the Commission, the CAP currently offers a wide range of policy tools to support the olive sector, from decoupled and coupled income support to interventions rewarding adaptation and good agronomic practices, support for investments and cooperation, as well as research projects on sustainability and resilience. This is particularly relevant for traditional olive groves.