Lang
Olive growers across Spain are confronting an increasingly difficult economic environment, as production costs continue to climb while farm-gate prices remain depressed. The mounting pressure on margins has prompted Cooperativas Agro-alimentarias de Andalucía, which represents more than 342,000 cooperative members in Andalusia, to urge the Spanish government and the European Union to introduce stronger support measures for the sector.
According to a study by the Spanish Association of Olive-Growing Municipalities (AEMO), average olive cultivation costs have risen by approximately 57% over the past six years. In traditional olive groves, production costs can reach €5.31 per kilogram of oil produced, a level that severely compresses farmers' margins at current market prices.
Despite these financial pressures, demand for olive oil remains robust. Spanish shipments totalled around 135,300 tonnes in July, nearly 20,000 tonnes above the five-year average for the month. Stocks declined by more than 113,000 tonnes during July, falling to approximately 568,700 tonnes by the end of the month.
According to the Andalusian cooperatives, one of the central challenges is the weak bargaining position of growers within the supply chain. The organization notes that rising production costs are not being fully passed through to farm-gate prices, prompting calls for legislative reforms, a stronger role for cooperatives, and improved direct access to both domestic and international markets.
The cooperatives are additionally demanding tighter controls on olive oil imports into the EU from third countries, particularly shipments entering under duty-free quotas. The issue carries particular weight for Andalusia, which accounts for roughly 75% of Spain's olive oil production, as producers seek to translate the country's leading position in the global market into better profitability at the farm level.
Source: UkrAgroConsult