The price of oil increases by 17% in the first months of the campaign in Cordoba

Official statistics from the Ministry of Agriculture, Fisheries, Water and Rural Development reveal that last week, a kilo of extra virgin was paid on average at 4.9 euros, i.e. a best quote more than 17 percent compared to that corresponding to the start of this campaign on October 1, although still lower than what producers received a year ago, which was around 5.46 euros.

The representatives of the olive sector consulted by ABC indicate, on the one hand, that the cause of this increase in prices must be sought in the fact that in recent weeks the first oils produced have been marketed, generally of better quality, although they also highlight the forecasts that point to a smaller harvest this year compared to that estimated at the beginning of this season.

The secretary general of Cordoba Oil Mills Association Industriales (Acora), Macarena Sánchez, said that so far this campaign “the operations have been carried out at higher prices, which correspond to oils of exceptional qualities for which the buyer is willing to pay more.” The president of the Protected Designation of Origin (DOP) of Lucena, Francisco de Mora, made similar remarks, recalling that the best olive juices are produced each year in November and December.

However, for the Secretary General of the DOP of Baena, José Manuel Bajo, the reason lies in the lower expected harvest. As presented by the Council, a production of 269,100 tonnes in the 180 olive oil mills of Cordoba, 7.5 percent less than the production corresponding to the previous period. The lack of rain in October raised alarm in the sector, a concern which was alleviated by the huge rainfall recorded in November, with 154 liters per square meter, 23 percent more than 12 months ago.

“The latest rainfall has made it possible to reduce the drop in production which we were scared two months ago“, but the latest sectoral meetings suggest that the estimates of the ministry and the ministry will have to be revised downwards, which could lead to an increase in prices”, underlined the representative of the quality label of olives.

It is worth wondering whether this upward trend in purchase values ​​will continue in the coming weeks. “My opinion is that prices will remain at certain levels very similar to those of last year taking into account the harvest forecasts that are being processed, but we will have to wait a few months to see how the campaign will end and what the forecasts are for the next one,” said De Mora.

Low in December

Sánchez, for his part, supported this vision, emphasizing that “it is expected that the price will remain stable throughout the campaign, although with a certain upward trend.” weak in December and in January due to the greater production that accumulates in these months. However, “this could change if the estimated harvest levels are not reached, which would generate certain tensions on the market which would lead to price increases”, according to the manager.

Faced with this, Bajo predicted that the price of extra virgin will reach “a robust level” due to the inventory forecast on the market will be lower than last year, “although everything will depend on the quality of the oil that can be obtained in the months to come.”

Market with swings

Two and a half months have passed since the official start of the olive campaign and the transactions carried out did not go as planned. “We were very struck by the few operations carried out in the first weeks of the season with freshly ground oil in a market that had little fluidity until recently,” said Acora’s general secretary, Macarena Sánchez.

For his part, the head of Lucena PDOFrancisco de Mora, indicated that “the market is in a situation of stability, highlighting the fact that in November and December part of the stocks that were reserved for January or February are being exhausted, at which point the new productions reach the consumer.”