Olive Oil Market Situation (July 2024)

The recent exemption from the Value Added Tax (VAT) on bottled olive oil, which took effect on July 1st, combined with a reassessment of retail prices, has led to a stabilization in the distribution numbers for this product in the past month, continuing the trend seen in June.

The Food Information and Control Agency (FICA) has disclosed that preliminary figures for July indicate that around 74,000 tons of olive oil were moved, a volume that industry experts had predicted due to lower prices at the source and a strengthened interest from consumers nationwide.

This activity in the market has resulted in a decrease in the accumulated stockpiles at the mills, which at the end of July amounted to 188,602 tons, a significant drop from the 251,521 tons recorded at the end of June. Meanwhile, producers and bottlers had about 152,081 tons in their inventories, a slight decrease compared to the 162,180 tons from the previous month. The reserves of the Olive Grove Communal Heritage (OGCH) remain virtually inactive with a minimal quantity of 1,873 tons.

In total, the industry currently has 342,556 tons in reserve, with a focus on transitioning to the new production season. The months of August and September will be crucial in defining commercial strategies for both sales and purchasing.

"A challenging scenario is expected due to the pressure from the upcoming harvest, which is anticipated to be better than the last. This could create a situation where oil from the previous harvest is offered at high prices compared to the more affordable options of the new oil."

Olive Oil Prices at Origin

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