Olive oil production doubles in Greece, prices fall

The president of SEVITEL, Mr. Costas Koutsioubis, told BD that the expected Greek production this year will range from 280,000 to 300,000 tons, roughly double that of last year.

In a few months, the olive oil market will be almost completely normalised domestically and internationally. The export activity of the major companies will also be restored.

Speaking to Business Daily, Mr Costas Koutsioubis, president of SEVITEL (Association of Greek Olive Oil Standardisation Industries), stated that the expected Greek olive oil production this year will range from 280,000 to 300,000 tons, approximately twice the previous year's output.

This estimate, of course, is subject to climatic conditions. There are areas of the country, such as Halkidiki or Crete, where the fruit falls early due to the high temperatures. And it looks like the next two months will be difficult. However, the development is expected to be positive, generally speaking.

At the same time, Spain— the largest olive-producing country and, in a good year, exceeding 1.7 million tons—is also expected to produce good amounts of olives. Production is certainly not "at its peak," but conservative estimates place it at around 1.4 million tons.

Based on these data, the domestic market prices have already started to fall - at a slow pace, of course, but it is falling. Extra virgin olive oil has a producer price of 8.20 to 8.30 euros, while last March, it was at 9.30 euros per litre.

However, the slow decline in the producer price is explained by the fact that demand remains high, as Spanish consumption appears to be recovering. However, the quantities of stocks released to the market are estimated to increase in the next period.

On the other hand, as is known, the limited and high quantities have significantly affected the sector's export activity, especially standardised olive oil, which reached 40,000 tons in recent years.

The value of exports during the last five months fell by approximately 50%, and, as Mr. Koutsioubis pointed out to Business Daily, their volume also decreased dramatically. It is no coincidence that the high prices were difficult to absorb in the international market.

For this reason, at the end of 2023, the export companies avoided closing annual contracts because they could not commit to a reasonable price level. However, after two years of difficulty, it seems—and this is a common belief of the market—that prices will be restored in October.

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