A Grand Tour of Global Olive Production

• The Mediterranean is the cradle of the olive, with Spain, Italy, Greece, Turkey, and Morocco as leading producers.
• Mediterranean Basin dominates, contributing 98% of worldwide olive cultivation and 97% of overall output.
• Spain, Greece, Italy, and Tunisia account for nearly three-quarters of global production.
• Olive cultivation spans continents but remains concentrated in its native Mediterranean habitat.
• In 2021, global olive production hit 101,000 tons in 36,000 acres, generating significant financial value.
• The future olive oil market projects growth to nearly $19 billion by 2029, led by Europe.
• Europe remains both the largest and the fastest-growing market for olive oil.

Historical Roots of Olive Production

Originating from Southern Europe, olives first flourished by the Mediterranean Sea. This origin story explains why the major olive-producing nations, like Spain, Italy, Turkey, Morocco, and Greece, dominate this sector. Despite its global reach across continents like Asia, the Americas, Australia, and Africa, olive cultivation thrives primarily within the Mediterranean Basin, accounting for 98% of the world’s olive tree coverage and 97% of its output.

Spain and Greece, alongside Italy and Tunisia, are the powerhouses, producing roughly 74% of all olives. Since 1980, the acreage dedicated to olives has stabilized between 30,000 to 40,000 acres. By 2021, about 36,000 acres were devoted to olive cultivation, resulting in a yield of 2.8 tons per acre and a total production volume of 101,000 tons, valued at over $85 million.

Olive Oil Processing and Market Growth

Of the 2021 production, about 54,390 tons were used for olive oil, valued at $764 per ton. An additional 31,400 tons were canned, with a higher valuation of $1,110 per ton, while 12,000 tons were processed into limited editions. A smaller quantity, approximately 2,200 tons, was deemed undersized, contributing negatively to net value.

Projections for the olive oil market are optimistic. Expectations are to escalate from $14.89 billion in 2024 to $18.86 billion by 2029, reflecting an annual growth rate of 4.85%. Europe holds the title as the largest and fastest-expanding market, producing substantial quantities of olive oil and table olives. The European Union leads in both production and exports.

Olive Production Crisis: A Grim Reality in Viannos

• The olive groves in Viannos are drying up due to severe water scarcity.
• Wells have run dry in three key areas, halting olive production this year.
• Local farmers face dwindling incomes and are considering leaving the industry.
• Bureaucratic delays hinder solutions to the labour shortage in agriculture.
• Community and local leaders seek urgent support from the government.

In the municipality of Viannos, olive groves stand like barren skeletons due to a dire water shortage. According to the mayor, vital wells in Vahoudianos Xirokambos, Agios Vassilios, and Kornias Pefkos have dried up. Consequently, there will be no olive harvest this year, leaving producers with zero income and facing a harsh reality.

Olive farmers in the region confront a challenging situation: minimal rainfall and dwindling profits. Many are contemplating exiting the olive industry, while others have already abandoned it. Additionally, the shortage of farm labour adds to their woes. The initiative to bring in workers from third countries is mired in bureaucratic hurdles, offering little help to desperate farmers.

Faced with numerous challenges in agriculture, the residents and mayor of Viannos call for immediate intervention and support measures from the central government. The continuous battle against time to save olive production underscores the urgency of their plea. The community hopes for a reversal of fortunes, but without substantial aid, the future remains uncertain.

Key Influences in the Olive Industry

The industry faces challenges like olive oil authenticity, with some regions diluting pure extra virgin olive oil with cheaper alternatives. Nevertheless, firms like Deoleo, S.A., based in Spain, maintain an esteemed reputation by producing genuine products. Deoleo markets renowned brands such as Bertolli and Carapelli, distributing them across over 70 countries.

In 2021, Deoleo achieved a milestone by earning the prestigious Platinum medal from EcoVadis, ranking it among the top 1% of companies assessed for corporate sustainability. This accolade reflects its commitment to quality, evidenced by an increased number of certified oil mills and awareness efforts on the benefits of olive oil consumption.

Nations Leading Olive Excellence

1. Israel: Renowned for its 81,000 acres of olive orchards, Israel significantly emphasises quality through stringent regulations.
2. Morocco: Known for diverse cultural influences, Morocco boasts regions like Fes and Meknes for premium olives.
3. USA: With stringent FDA guidelines, the US, especially California, excels in producing high-quality olive oil varieties.
4. Chile: The country’s climate and soil conditions in the northern regions favour the production of premium olive oil.
5. France: Notable for its olive oil exports, France is prominent in the olive sector, particularly in regions like Provence.
6. Argentina: Though a newer player, Argentina makes strides in cultivating native olive varieties like Arauco.
7. Turkey: With a rich historical connection to olives, Turkey’s export figures have surged recently.
8. Tunisia: As a top exporter, Tunisia’s varieties, like Chétoui, provide oil rich in healthy polyphenols.
9. Greece: Celebrated for its extra virgin olive oil, Greece is a major exporter, mainly to European countries.
10. Portugal: Portugal’s olive cultivation thrives in districts like Alentejo, with significant export levels.
11. Italy: Famed for its flavorful olive varieties, Italy remains a leading exporter in the global olive oil industry.
12. Spain: Dominating the markets, Spain is the world leader, contributing significantly to global olive oil production.

The global olive sector thrives on historical roots and current innovations, with countries vying for excellence in quality and production strategies. As the industry grows, these nations continue to shape the future of culinary traditions worldwide.