Rising olive oil prices: Where will it end up on the shelf – The role of VAT and a pivotal January – Newsbomb – News

The new olive growing season begins next week – Expected production decline could reach 40% – Estimates of good producer prices that could approach 10 euros per liter after January – Government actions and good will from the market are required to protect consumers Market players point to Newsbomb.gr

the Olive oil production decreased this yearthe Shortage of inventory And the drought Some factors are recorded in the producing countries (Italy – Spain) that threaten the consumer’s “wallet”, in addition to constantly high inflation in the food category.

In particular, the retail price on the shelves supermarket Varies from Private label €6.5 per liter up to €14In some cases, it is labeled as extra virgin olive oil.

In fact, market participants do not see the bull run stopping soon, since production began this year Greece, Italy, Spain And turkey is reduced.

Organic and conventional olive oil

About the situation in the industry, he spoke to Newsbomb.gr Maestro Karambasis, producer and president of the Laconia Organic Farmers Union. According to him: “Producer price trends for olive oil are upward, and as everything shows, they will rise further. Latest published auctions for The price of Laconia reached 8.50 euros per liter For traditional extra virgin olive oil.

“Regarding Organic olive oil No auction has been heard yet, but prices now have no significant differences. I estimate them at 50 minutes. “Prices have actually leveled off since March.”

He adds: According to estimates, the price of the product will not escape much. It is charged at €9 for membership as well It will not exceed 10 euros.

Regarding the price on the shelf at the moment, it is between 13-14 euros per lemon (in supermarkets and shops) and is considered expensive for Greeks. If the price of the product rises a little more, it is not unlikely that we will get there 15 euros. It all depends on the volume of production. But Laconia will not see a significant reduction.”

“Little by little we will see price increases on the shelf.”

Over two years of Greek production deficit, which justifies the increase in prices, Mr. Hazard said: nHa Parashakis, olive oil quality manager at the agricultural cooperative in Chania.

In detail, Mr. Parashakis points out that “the year we are going through is more deficit than the year that passed us. This means that if the market operates according to healthy rules, only the producer price of olive oil will rise. There is a decrease in consumption, but the consumer has not left.” The firstborn. Prices will rise more than the average price of 8 euros that we have now and slowly We’ll see the signs on the shelf.

Oil is considered one of the products in which there is no profit as its continuous rise in price is justified We spent two years of disability with the second disability more than the first. In contrast to other products, there is a profit that we all experience. The market must be controlled and the wishes heard from time to time put into practice. But what I advise consumers to do is not to buy cheap oils for sale, but rather to prefer well-known and exported oils Branded companies».

Market participants are demanding a reduction in value-added tax

According to the olive oil quality manager at the agricultural cooperative in Chania, what needs to be done is for the middleman and the market to address the problem. The state must also do something about the value-added tax on olive oil, says Mr. Parashakis. “Currently in our country we have 14% Value added tax While in Portugal it is 0%, in Spain 4% and in Italy 5%.”

He concludes: “There is an attempt not to start with too high prices for fresh oil. However, I believe that prices will rise again in January. Since at the beginning of the season there is an increase in supply which decreases over time. This year we expect to produce an order 200,000 tons While production, which was also reduced, affected them last year 330 thousand tons.

The situation in the Mediterranean and the world

It should be noted that the problem of high olive oil prices is not only a Greek phenomenon. In the summer, Turkey, the world’s fourth olive oil producer, decided to suspend exports of bulk products until November.

In good olive growing years, global consumption moves to 3 million tons The average annual production in the European Union – which is its largest producer – is 1.892 million tons. This year, the 2022/2023 olive growing season, production fell by 500,000 tons, the second worst performance in a decade.

In Italy, production decreased by 27%, while in Greece it increased by 47%, reaching 340 thousand tons.

Olive cultivation worldwide occupies about 11.5 million hectares, including 2.5 million hectares in Spain, and there are 14,000 olive presses in the world. There are about 1,800 olive presses in Spain alone.

the Estimates For the upcoming olive growing season 2023/2024 Ominous After the recent heat waves that “hit” the Mediterranean. Before the harsh weather, the International Olive Oil Council expected Spain’s production to reach 850,000 tons. Far less than the 1.3 million tons it produces in a typical year but higher than the 660,000 tons it produced last year.

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