This year’s season is classified as moderate to good production olive oil the volume of which is expected to be between 200,000 and 250,000 tons, with the general picture not significantly different from last year, with some areas however showing a slight decrease and others slightly improved performance.
“In other areas the situation is better, in others worse,” said the president of the National Interprofessional Olive Oil Organization, Manolis Giannoulis, in his statements to APE-MBE, pointing out that the variation is related to climatic conditions and the natural rotation of olive fruiting. “Crete, which had a good production last year, is somewhat lower this year. It has to do with rainfall, cold, flowering. The lion tree cannot produce two years in a row,” he explains.
Mr. Giannoulis emphasizes that a clear picture of production will be available towards the end of February and beginning of March, even though as he says “in Greece we do not have an official record of production. The figures listed are always estimates.”
Regarding prices, he expects that this year will be “quiet” in terms of fluctuations. “We will not see the historic lows of previous years. Production throughout the Mediterranean is moderate to good, there is no overproduction. The balance of supply and demand is calm,” he said.
According to him, producer prices in this period range between 4 and 5 euros per kilo, levels that are expected to be maintained. On the shelves of supermarkets, consumers purchase the oil between 7-8 euros per kilo, as he noted. “It looks like it will be a calm year, without extreme fluctuations. There is product adequacy and stability in the market,” he concluded.
Production costs and climate change are the main problems
According to the president of EDOE, two are the biggest obstacles for the sector: the high cost of production and the effects of climate change. “The cost of production in Greece is very high, because of the way we cultivate. The olive trees are planted in the disadvantaged, stony and sloping soils, usually dry – we wait for God to water them,” he noted.
Declining rainfall and mild winters are exacerbating the situation. “The olive tree needs cold and water to grow properly. When those are missing, we have a problem,” he explained. At the same time, he also mentioned the high cost of collection, due to the impossibility of mechanizing the harvest. “In Greece it is not possible to collect by mechanical means, as in Spain or Portugal. The daily wage has doubled, from 30-35 euros before the pandemic, today it has exceeded 60 euros”, he pointed out, underlining that beyond that “workers are also hard to find”.
Mr. Giannoulis points out that in order to make Greek olive cultivation more competitive, coordinated efforts, investments and better organization are required. “The process to make the product competitive is long and costly. Funds and organization are needed – elements that are unfortunately lacking,” he stressed, noting however that there are notable individual business efforts that are making a positive contribution.
Regarding exports, the president of EDOE emphasized the positive development of standardization. “From the 20-25 thousand tons of standardized olive oil we exported a few years ago, we have reached almost 40 thousand. It is a good course that shows perspective,” he pointed out.