Oil, Olive

2013/2014

2014/2015

2015/2016

Market Begin Year

Nov 2013

Nov 2014

Nov 2015

European Union

USDA Official

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USDA Official

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USDA Official

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Area Planted

0

0

0

0

0

0

Area Harvested

0

0

0

0

0

0

Trees

6,750

0

6,750

0

0

0

Beginning Stocks

356

356

430

520

0

155

Production

2,475

2,475

1,600

1,530

0

2,200

MY Imports

54

45

150

150

0

50

MY Imp. from U.S.

0

0

0

0

0

0

MY Imp. from EU

0

0

0

0

0

0

Total Supply

2,885

2,876

2,180

2,200

0

2,405

MY Exports

675

601

580

450

0

520

MY Exp. to EU

0

0

0

0

0

0

Industrial Dom. Cons.

40

40

20

20

0

20

Food Use Dom. Cons.

1,740

1,715

1,520

1,575

0

1,650

Feed Waste Dom. Cons.

0

0

0

0

0

0

Total Dom. Cons.

1,780

1,755

1,540

1,595

0

1,670

Ending Stocks

430

520

60

155

0

215

Total Distribution

2,885

2,876

2,180

2,200

0

2,405

1000 HA, 1000 TREES, 1000 MT

MY 2015/16

Rough estimates indicate higher olive oil production in the EU-28 for MY 2015/16 after the decline in production levels registered in MY 2014/15, based on production rebound in mainly in Spain but also in Italy to some extent. Average yields are projected in the other main European producing countries.

MY 2014/15

Production

Olive oil production in the EU is fairly concentrated in the Mediterranean area. Spain followed by Italy, Greece and Portugal are the main olive oil producers in the European Union. Olive oil production also exists in other European countries such as Cyprus, France, Croatia and Slovenia.

Olive oil production hit record levels in MY 2013/14, when favorable weather conditions boosted yields in most of the olive oil producing member states, with the exception of Greece. Available date indicate that overall olive oil production in the European Union will decline in MY 2014/15.

Currently we estimate EU's MY 2014/15 output levels at 1,530 thousand MT. Countries like Spain, Italy, Portugal and France report significant production losses caused by unfavorable blooming and fruit setting conditions as well as olive fruit fly (Bactrocera oleae) infestation. Improved performance in Greece was not sufficient to offset production decline in the other main olive oil producing Member States.

In Spain, the world largest olive oil producing country, olive oil production is anticipated to halve in MY 2014/15. A delayed harvest and unfavorable conditions at the end of April and May resulted in a poor blooming and fruit setting. Also, the fruit fly infestation provoked fruit fall and negatively impacted the olive crop.

In Italy, MY 2014/15 olive oil production is estimated at about 300 thousand MT, showing a decline compared to previous year. This output reduction is explained by a number of factors that include unfavorable weather conditions, fruit fly infestation and the appearance of a hostile bacterium, Xylella fastidiosa, which is destroying centuries-old olive trees and threatening supplies of Italian oil. Additionally, reduced profitability caused by raising input costs and decreasing prices have forced many Italian oil olives growers to cut some production boosting cultivation practices and to give up harvesting the crop or even to shut down over the last ten years.

Greece's MY 2014/15 olive oil production is estimated to climb to approximately 300,000 MT, thanks to favorable weather, especially in Crete, the leading producing area.

Consumption

Main olive oil producing member states are also main consuming member states. Poor domestic harvest has resulted in soaring prices in the recent months, which may ultimately lead to a decline in consumption.

Trade

Declining stocks along with and extra EU imports rebound in MY 2014/15, mainly originated in olive oil producers in the Mediterranean basin, will partially make up for the limited domestic supply. The tight balance is anticipated to result in a slowdown of extra EU exports throughout MY 2014/15, which according to sources, will affect especially to exports of olive oil in bulk.