Olive oil: Expected foodservice reopening to boost prices and sale

Olive Oil sales

The latest developments in the Greek olive oil production centers, reflect a subdued market with somewhat upward sales. One of the latest developments is the prices which are currently around €2.90 a kilo in Crete, a slight change for the better compared to the previous period which was from €2.55 to €2.75 a kilo for premium quality product. Prices in Laconia are maintained around €2.85 to €2.90 a kilo. On the other hand, a large portion of producers and cooperatives seem at this stage to be storing olive oil, hoping for a reopening of the market within the following months, somewhere along the lines of spring and/or summer. In fact, producers in Italy are also working in this direction, according to the local press, while in the meantime prices remain stagnant around €4.30-4.50 a kilo for the standard extra virgin olive oil. As far as Spain is concerned, prices range from €2.50 to €2.60 a kilo for the second consecutive week, with some olive oils reaching €3 per kilo.

As people market insiders explain, this stagnation lies in the fact that the standardization industry is worried about what the future will bring for European markets. Thus, seeing the reluctance of olive producers to continue operating below the range of €3 a kilo, they simply source small quantities, enough to cover their immediate needs.

In Greece, this accumulation in the olive oil market will either expand to a price range of more than €3 a kilo or will be assimilated in the current market climate. According to the market insiders, as long as the retail remains the main channel to sell the product, it is difficult to break the terms imposed by the big super market and grocery chains. On the other hand, once foodservice is up and running again, then the flexibility provided by a second channel, as well as the preparations for the summer season will only raise prices for the producers, since the quantities in Greece and Italy are small anyway.

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