Rafael Sánchez de Puerta, head of Olive Oil at Cooperativas Agroalimentarias de España, voiced optimism about price stabilization. He suggested prices could settle “around 5 or 6 euros per kilo,” which he described as a “win for both producers and consumers.” During a media event by Cooperativas Agroalimentarias de Andalucía, Sánchez de Puerta highlighted that some distributors had already speculated on price dips after two years of drought, coupled with a mid-to-low yield harvest. Still, he noted, “There’s not yet a sufficient volume of oil on the market,” citing just over 50,000 tons delivered in October against Spain’s expected 1.2 million-ton production.
Market Stabilization or Just Wishful Thinking?
Sánchez de Puerta acknowledged a period of more stable pricing after recent declines. However, he pointed out that the market effectively halts during price drops as buyers wait for further reductions.
Representing 300,000 Andalusian olive growers who will produce half of Spain’s total output this year, he emphasized three crucial uncertainties shaping the market:
- Final global production figures influenced by autumn rainfall, especially in rainfed areas.
- The recovery of consumer demand after enduring high prices for two years.
- Weather patterns and future harvest forecasts.
He warned the sector to avoid a nosedive in prices. “We shouldn’t overshoot and let prices fall too far,” he suggested, nervously eyeing the already-expected dip.
For two years, drought-driven low production left the market parched. The only thing controlling olive oil prices? Scarcity. Yet somehow, every drop of oil got sold, proving this golden liquid enjoys elite status among consumers, even in hard times. According to Sánchez de Puerta, the next big challenge is winning back customers lost during those lean years, when supply and prices alienated buyers.
Tariff Turmoil in the U.S.
A particularly sore spot is the United States, where concerns grow over potential new tariffs following political shifts. Although U.S. production hovers at just 5,000 tons, its annual consumption climbs to 400,000 tons, making it a key market. Spanish companies, led prominently by cooperatives like Dcoop, dominate sales. However, Sánchez de Puerta expressed fears over a “flat 10% tariff on agro-food imports,” a possibility floated under the Trump administration. Though nothing has materialized yet, the consequences could be punishing.
Export Woes for Spanish Table Olives
Accompanying Sánchez de Puerta, Gabriel Cabello, head of Table Olives for Cooperativas Agroalimentarias de España, provided a reality check. He recalled that U.S. tariffs on Spanish black olives trace back to the 1960s and 70s. “The tariffs are both unfair and illegal,” he asserted.
He added that the industry has suffered staggering losses. The numbers are grim. Spain has lost over €200 million in sales to the U.S. due to tariffs. Oh, and that once-dominant spot in the U.S. market? Kiss it goodbye. Turkey, Egypt, Morocco, and Greece happily stepped in to claim those profits as Spain stumbled.
Cooperativas Agroalimentarias de España has called on the EU to respond decisively. “Every action needs a counteraction—not just to retaliate but to deter,” Sánchez de Puerta remarked. He urged for prevention-focused measures, though whether those prove effective in safeguarding the sector remains a question.
