THE GLOBAL MARKET FORTHE GLOBAL MARKET FOR OLIVE OIL ... Cetraro.pdf · portug. 20 62 22 32,1 32,2...
Transcript of THE GLOBAL MARKET FORTHE GLOBAL MARKET FOR OLIVE OIL ... Cetraro.pdf · portug. 20 62 22 32,1 32,2...
THE GLOBAL MARKET FORTHE GLOBAL MARKET FOR OLIVE OIL: ISSUES AND PROSPECTS IN THE MEDITERRANEAN BASINMEDITERRANEAN BASIN.MASSIMO OCCHINEGRO (NICOLA PANTALEO (S.P.A. FASANO OF PUGLIA - ITALY) GRAND HOTEL SAN MICHELE – CETRARO 16-17 JUNE 2008
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THE OLIVE TREE ROUTE IN THE MEDITERRANEAN BASINTHE MEDITERRANEAN BASIN
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OLIVE OIL: MAIN PRODUCTION COUNTRIES IN THE MEDITERRANEAN BASIN
SPAIN ITALYGREECEPORTUGALSLOVENIAFRANCECYPRUSALBANIATUNISIATURKEYSYRIAMOROCCOMOROCCOEGYPTALGERIALIBYAPALESTINE
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PALESTINEISRAEL
OLIVE OIL PRODUCTION IN THE E.U. (Source: International Olive Oil Council) PRODUCTION (1000 MT)
OUR ELABORATION ON INTERNATIONAL OLIVE OIL COUNCIL DATAS.
364829,141,231,228,933,724,650,235,14244,843,732,232,1226220PORTUG.
360370424435308414358,3430420473375390400350254310385170GREECE
500603636,5879685634656,7509735403,5620370620448520435674,5163,3ITALY
1228,11108,7826,9989,81412861,11411,4973,7669,1791,91077947,3337,6538,8550,9623,1593639,4SPAIN
2007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/921990/91COUNTRY
TOTAL 2007/08 2.135,6
OUR ESTIMATION
0,50,30,500,2n/an/an/an/an/an/an/an/an/an/an/an/an/aSLOVENIA
4,53,44,44,74,64,73,63,24,13,42,72,52,322,31,64,31FRANCE
6,58,37,27,57n/an/an/an/an/an/an/an/an/an/an/an/an/aCYPRUS
0,50,50,5MALTA
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OLIVE OIL PRODUCTION IN OTHER COUNTRIES OF THE MEDIT. BASIN (Source: International Olive Oil Council) PRODUCTION (1000
MT)
160166112145791406517570170402004016048566080TURKEY
18017022013028072351302102159327060100235120250175TUNISIA
2007/082006/072005/062004/052003/042002/032001/022000/011999/001998/991997/981996/971995/961994/951993/941992/931991/921990/91COUNTRY
OUR ELABORATION ON INTERNATIONAL OLIVE OIL COUNCIL DATAS.
16161020521,5182025,5912128131N/AN/APALESTINE
21,5372229252814276,521,514231413,512,51458JORDAN
3421,53233,569,51525,526,533,554,51550,551,516,52127376ALGERIA
85757550100456035406570110354540385036MOROCCO
100154100175110165921658111570125769065864283SYRIA
332,52,5251,50,52,50,510,52,511110,5EGYPT
58,539393,572,54,535,555,51,57,52,58ISRAEL
54,5553755,5951,5N/AN/AN/AN/AN/AN/AN/ACROATIA
5,55,55,567,5656573,56,5552856LEBANON
1111912,512,56,5747861046,586107LIBYA
630,5TOTAL
4N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AALBANIA
0,50,50,50,50,50,50,50,5110,50,51,52,521,523,5S.& MONT.
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OLIVE OIL: WORLD PRODUCTIONPRODUCTION
E.U. : 2.135.500 MTOTHER COUNTRIES ON MED BASIN:OTHER COUNTRIES ON MED. BASIN:
630.500 MTOTHER COUNTRIES OUTSIDEOTHER COUNTRIES OUTSIDE MEDITERRANEAN SEA:
54 500 MT54.500 MTTOTAL WORLD 2007/2008 CROP:
2 820 500 ( ti )6
2.820.500 (estim.)
World production and consumption in the last 5 crops (MT/1000)p ( )
2007/082006/072005/062004/052003/04
2,820.52,859.52,572.53,013.03,174.0PRODUCTION
2,926.52,907.52,690.52,923.52,882.5CONSUMPTION 2,926.52,907.52,690.52,923.52,882.5
1064811889 5291 5BALANCE
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-106-48-118+89.5+ 291.5BALANCE
CONSUMPTION ( BLUE) & PRODUCTION (PINK) TREND IN THE LAST 18 YEARS (SOURCE I O O C )TREND IN THE LAST 18 YEARS (SOURCE I.O.O.C.)
3500INVENTORY
2500
3000 INVENTORY INVENTORYhazelnut oil ?
1500
2000
2500INVENTORY Neutral oil ?
Four crops
Three crops
Three crops
One crop
1000
1500
PRODUCTION SHOULD INCREASE TO MEET CONSUMERS’ DEMAND OR THERE IS THE CONCRETE RISK OF A FAKE OIL
Four crops
0
500PRODUCTION SHOULD INCREASE TO MEET CONSUMERS DEMAND OR THERE IS THE CONCRETE RISK OF A FAKE OIL
“EXPLOSION”(SUCH AS NEUTRAL WHICH BECOMES “EXTRA VIRGIN” OR BLENDED WITH OTHER SEED OILS)
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
The negative impact of media on olive oil imageolive oil image
Olive oil fraudes are “normal” in olive oil market. Recently media pointed out somemarket. Recently media pointed out some criminal facts which are referred to very few quantities of a fake olive oil (25,000 liters). Such criminal facts are “endemic” in olive oil market and in other food markets but for the
bli i i t b bi bl ithpublic opinion seems to be a big problem with a big impact on the market side in many foreign Countries
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foreign Countries.
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Olive Oil production increase: the case of Tunisia & Moroccocase of Tunisia & Morocco
TUNISIA: Tunisian olive oil production is currently turning to irrigated farming. Thus intensive cultivation on large expanses in the north constitutes an attractive investment opportunity. The Tunisian Government has set a series of developmental goals for the oliveGovernment has set a series of developmental goals for the olive sector:
1) Raising production to reach at least 210 000 t;2) Improving tree yields, among other things by using modern olive
harvesting methods;3) Increasing exports to 130 000 t/year.4) Stimulating consumption to increase it from the current level of 50 000
Mt to 80 000 Mt.MOROCCO: They are going to plant over than 1,000,000 of olive trees; 600,000 already under production; financial funds came from United States; they put 1,800 olive trees par hectare.
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EXPORT FROM ITALY & SPAIN
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685.370.883367.324.587318.046.296
SPAINITALYSPAINITALY
SPAIN fluctuation 2007/2006
ITALY fluctuation 2007/2006
% SPAIN% ITALYMARKET
2007
% SPAIN% ITALYMARKET
2006
EXPORT 2006 E 2007 OF ITALY AND SPAIN JANUARY/DECEMBER 2006/2007
36,65 -17,05 70,9129,0935.434.81425.127.28310.307.53156,8843,1227.981.90015.917.24012.064.6604) Australia
2,35 -5,21 16,8983,1143.022.4917.266.08035.756.41115,8784,1344.715.3047.095.19837.620.1063) Germany
0,53 22,78 60,0939,9145.660.91127.435.55418.225.35765,9834,0241.365.90127.291.43514.074.4662) United Kingdom
19,03 -0,67 27,0572,95163.922.67344.348.059119.574.61422,9877,02156.283.19035.908.845120.374.3451) United States
12,60 1,52 53,6046,40
685.370.883367.324.587318.046.296
50,6249,38634.265.467321.056.763313.208.704
10,27 2,69 29,3970,6110.580.3553.109.5237.470.83227,7472,2610.060.3062.790.2447.270.06210) Switzerland
16,35 46,23 76,9923,0110.898.0628.390.5882.507.47483,8916,118.366.9987.018.7161.348.2829) Brazil
16,57 -36,35 51,0748,9315.056.7747.690.1167.366.65838,9861,0216.459.8896.415.48410.044.4058) Netherlands
15,91 11,16 4,5495,4617.743.491805.85416.937.6374,3195,6915.725.723677.61715.048.1067) Canada
3,29 3,55 63,1336,8717.746.05211.203.7736.542.27963,2036,8017.144.73510.834.7326.310.0036) Belgium
-1,53 -5,91 41,3158,6926.628.23511.000.96815.627.26740,2959,7127.720.23411.169.60416.550.6305) Japan
11,70 18,76 37,5162,495.935.4932.226.6853.708.80839,4960,514.979.1501.966.1613.012.98915) Poland
44,98 38,02 61,1438,866.449.0833.943.2902.505.79358,2841,723.722.7252.169.5681.553.15714) China
-18,00 -19,07 75,9224,088.199.5576.225.0711.974.48675,7524,259.696.6207.345.6312.350.98913) South Korea
-4,96 14,58 75,6324,379.684.0367.323.9122.360.12479,2220,789.703.1587.687.2182.015.94012) Mexico
33,89 30,33 74,3525,6510.480.3277.792.0202.688.30773,3426,667.024.2895.151.3501.872.93911) Russia Federation
23 1140 6953 5346 473 360 6831 799 0861 561 59738 6461 363 580 4521 383 3882 197 06421) N Z l d
21,91 23,52 67,8532,153.553.4202.411.0841.142.33668,3131,692.756.3671.882.742873.62520) Czech Republic
1,76 9,42 73,6026,403.610.6782.657.335953.34375,1424,863.474.1302.610.560863.57019) Saudi Arabia
21,88 8,97 80,5419,463.746.8973.017.640729.25778,0321,973.021.2082.357.359663.84918) Ireland
10,11 9,16 17,2782,735.089.998878.9104.211.08817,1282,884.615.448790.0133.825.43517) Austria
21,19 20,67 24,9075,105.144.3521.280.7823.863.57024,7775,234.074.1911.009.3253.064.86616) Sweden
19 2623 8982 0018 002 751 2012 255 889495 31282 8517 152 198 3911 821 385377 00626) Venezuela
5,96 -4,68 45,7854,222.860.6911.309.7221.550.96943,1456,862.855.1921.231.6701.623.52225) Denmark
16,80 15,80 87,4912,512.923.1982.557.485365.71387,3612,642.435.8732.127.927307.94624) United Arab Emirates
24,10 -2,33 20,4979,513.065.651628.0762.437.57516,0583,952.971.072476.7172.494.35523) Taiwan
37,02 25,20 45,0854,923.314.8691.494.4071.820.46240,8759,132.302.858941.1981.361.66022) South Africa
23,11 -40,69 53,5346,473.360.6831.799.0861.561.59738,6461,363.580.4521.383.3882.197.06421) New Zealand
1310,47 27,25 65,3334,671.896.6561.239.028657.62869,8730,131.587.7401.109.344478.39631) Thailand
22,91 48,08 58,4141,592.106.7431.230.445876.29867,5932,411.403.530948.598454.93230) India
-10,42 24,82 6,9193,092.484.565171.7092.312.8569,8390,171.928.434189.6001.738.83429) Romania
-1,73 17,69 80,7019,302.540.5502.050.180490.37083,7816,222.489.2102.085.574403.63628) Norway
18,03 32,22 91,858,152.616.8042.403.477213.32793,166,842.114.8131.970.223144.59027) Colombia
19,26 23,89 82,0018,002.751.2012.255.889495.31282,8517,152.198.3911.821.385377.00626) Venezuela
CONSUMPTION DATAS (IOOC SOURCE)SOURCE)
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EXPORT FROM ITALY & SPAINEXPORT FROM ITALY & SPAIN COMPARED TO CONSUMPTION
A AS O O O CDATAS OF I.O.O.C.
S S 16 000USA: ITALY+SPAIN = 164,000 MTIOOC = 251,000 MT ; ASIDE DOMESTIC
PRODUCTION AND IMPORT FROM OTHER COUNTRIES OF ABOUT 87,000 MT. (35%)
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EXPORT FROM ITALY & SPAIN COMPARED TO CONSUMPTION DATAS OF I.O.O.C.
AUSTRALIA: ITALY + SPAIN= 35,000 MT ; IOOC 41 000 MT ASIDEMT ; IOOC 41,000 MT - ASIDE DOMESTIC PRODUCTION AND IMPORT FROM OTHER COUNTRIES; AUSTRALIAFROM OTHER COUNTRIES; AUSTRALIA HAS AN ADDITIONAL CONS. OF ABOUT 6 000 MT (15%)6,000 MT. (15%)
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EXPORT FROM ITALY & SPAIN COMPARED TO CONSUMPTION DATAS OF I.O.O.C.
BRAZIL: ITALY+ SPAIN= ABOUT 10 900 MT; IOOC 34 000 MT10,900 MT; IOOC 34,000 MT
WITH A BALANCE OF 23,100 MT (68%) COMING FROM OTHER AREASCOMING FROM OTHER AREAS
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EXPORT FROM ITALY & SPAIN COMPARED TO CONSUMPTION DATAS OF I.O.O.C.
JAPAN: ITALY + SPAIN = 26,628 MT;IOOC 31 500 MT WITH A BALANCE OFIOOC : 31,500 MT, WITH A BALANCE OF 4,872 MT. (15%) PURCHASED OUTSIDE
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EXPORT FROM ITALY & SPAIN COMPARED TO CONSUMPTION DATAS OF I.O.O.C.
CANADA: 17,743 MT ; IOOC 30,500 MT WITH A BALANCE OF 12 757 MT (42%)WITH A BALANCE OF 12,757 MT (42%) PURCHASED OUTSIDE
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CANADA
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WORLD OLIVE OIL MARKET DEMAND: PROBLEMS TO BEDEMAND: PROBLEMS TO BE FACED EVERY DAY IN TRADE
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THE CASE OF U.S.A.
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U.S. PROBLEMS ABOUT LEGISLATIONLEGISLATION
The United States is not a member of the IOOC, and the US Department of AgricultureIOOC, and the US Department of Agriculturedoes not legally recognize its classifications (such as extra-virgin olive oil). The USDA uses a different system, which it defined in 1948 before the IOOC existed. The California Oli Oil C il i t t d iOlive Oil Council, a private trade group, is petitioning the USDA to adopt IOOC rules.
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I.O.O.C. STANDARDS.As IOOC standards are complex, the labels in stores (except in the U.S.) clearly show an oil's grade:Extra-virgin olive oil comes from cold pressing of the olives, contains
th 0 8% idit d i j d d t h i t tno more than 0.8% acidity, and is judged to have a superior taste.Virgin olive oil has an acidity less than 2%, and judged to have a good taste. Pure olive oil. Oils labeled as Pure olive oil or Olive oil are usually a yblend of refined olive oil and one of the above two categories of virgin olive oil. Olive oil is a blend of virgin oil and refined oil, containing no more than 1.5% acidity. It commonly lacks a strong flavor. Olive-pomace oil is a blend of refined pomace olive oil and possibly some virgin oil. It is fit for consumption, but it may not be called olive oil.Lampante oil is olive oil not used for consumption; lampante comes f li il' i f l i il b i l L il i
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from olive oil's ancient use as fuel in oil-burning lamps. Lampante oil is mostly used in the industrial market.
U.S. STANDARDSThe United States is not a member of the IOOC and therefore the retail grades listed above have no legal
i i th U it d St t t h " tmeaning in the United States; terms such as "extra virgin" may be used liberally. The U.S. Department of Agriculture (USDA), which controls this aspect of l b li tl li t f d f li illabeling, currently lists four grades of olive oil: "Fancy", "Choice", "Standard", and "Substandard", also called Grade A through D, respectively.These
t bli h d i 1948 Th d b dwere established in 1948. The grades are based on acidity, absence of defects, odor and flavor
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Olive oil grades in U.S.A.The United States standards date from 2 March 1948 and are much less sophisticated pthan those adopted by the IOOC. There are four grades, “Grade A, U.S. Fancy,” “Grade B, U S Choice ” “Grade C U S Standard” andU.S. Choice, Grade C, U.S. Standard and “Grade D, substandard.” The maximum “free fatty acid content, calculated as oleic,” is 1.4%, 2.5% and 3% respectively. In 2004 American growers were agitating to adopt stricter European standards
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stricter European standards.
The Agricultural Marketing Service (A.M.S.)(A.M.S.)
The Agricultural Marketing Service, of the Department of USDA is soliciting comments on the proposed revision to the United States Standards for Grades of Olive Oil. The proposal includes two major groups of oil: “Olive Oil” produced by mechanical means; and “Olivegroups of oil: Olive Oil produced by mechanical means; and Olive pomace oil”. The proposal includes new product descriptions, definitions and requirements for the following grade designations:U.S. Extra Virgin Olive Oil;U S Virgin Olive Oil;U.S. Virgin Olive Oil;U.S. lampante Virgin Olive Oil – not fit for Human consumption;U.S. Refined Olive oil;U.S. Olive Oil;;U.S. Olive Pomace Oil;U.S. Refined Olive Pomace Oil;U.S. Crude Olive Pomace Oil.
COMMENTS MUST BE SUBMITTED ON OR BEFORE AUGUST 2008
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COMMENTS MUST BE SUBMITTED ON OR BEFORE AUGUST, 2008
“S d It li ” bl“Sounds Italian” problem
IN THE U.S. MARKET MANY BRANDS ARE PRODUCED IN U S A (OR ANYWAY OUTSIDE ITALY) USING AN “ITALIANU.S.A. (OR ANYWAY OUTSIDE ITALY) , USING AN “ITALIAN NAME” (I.E. ROMOLO OR LIO) FOR OBTAINING A GOOD IMAGE AND MARKET SHARES IN SUPERMARKETS.
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FROM TURKEY
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THE CASE OF INDIA & CHINA
THE FUTURE PASS THROUGH THESETHE FUTURE PASS THROUGH THESE NEW BIG ECONOMIES
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Customs duties and under invoicing in India in 2007in India in 2007
IN INDIA CUSTOMS DUTIES ON OLIVE OIL WERE 45% ON PRICE. IT CAUSED SEVERAL PROBLEMS OF UNDER INVOICING. SINCE APRIL 2008, DUTIES REDUCED DRASTICALLY (NOW 7 5%) EVEN IF ARE NOT 0% AS IN(NOW 7,5%) EVEN IF ARE NOT 0% AS IN MOST OF FOREIGN MARKETS.THE SAME PROBLEM COULD OCCUR IN THETHE SAME PROBLEM COULD OCCUR IN THE CHINESE MARKET; SOME IMPORTS COME FROM HONG-KONG OTHERS FROM CHINA WITH AN UNDER INVOICING
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WITH AN UNDER INVOICING
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1,49 Euro per Liter
1,45 Euro per Liter
1,47 Euro per Liter
1,43 Euro per Liter
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0,87 Euro per Liter
0,834 Euro per Liter
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Olive Oil Market in India
Growth(%)
Quantity
542,3201,500Total (MT)
20072006 (%)
21910750Non-edible881410750Edible (MT)
21910750o ed b e(massages) (MT)
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WHAT’S ABOUT THE FUTURE ?
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OLIVE OIL CONSUMPTION PER CAPITA INOLIVE OIL CONSUMPTION PER CAPITA IN SOME PRODUCTION COUNTRIES
CONSUMPTION (KG)CONSUMPTION (KG)SPAIN 13,62 kgITALY 12 35 kITALY 12,35 kgGREECE 23,70 kgTURKEY 1,2 kgTUNISIA 9 1 kgTUNISIA 9,1 kgSYRIA 6,0 kg
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OLIVE OIL CONSUMPTION PER CAPITA IN SOME NOT PRODUCER COUNTRIES
UNITED STATES based on 300,000,000 people : 0,87 KgUNITED KINGDOM based on 59,778,002 people :0,76 KgGERMANY based on 83 251 851 people:0 51 kgGERMANY based on 83,251,851 people:0,51 kgAUSTRALIA* based on 19,189,000 people: 2,13 kgJAPAN based on 127,757,000 people: 0,25 kgBRAZIL based on 186,770,562 people: 0,195 kgBRAZIL based on 186,770,562 people: 0,195 kgRUSSIA FED. based on 141,380,000 people: 0,07 kgCHINA based on 1,321,851,888 people: 0,0048 KgINDIA** based on 1,027,015,247 people: 0,0020 Kgp p g
*Australia started already an olive oil production;**: India invested in Rajasthan, Maharashtra and Pradesh.United States already is producing olive oil.
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What’s the future for Olive Oil in the mediterranean basin? Scenariomediterranean basin? Scenario
Production increase of not E.U Countries -> due to an economyCountries > due to an economy development; Consumption increase of not E.UConsumption increase of not E.U Countries -> due to the growth of G.N.P.;;Consumption decrease in E.U. Countries -> due to depressed economies.
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p
What’s about the Western Countries, such as U.S.A. & E.U?such as U.S.A. & E.U?
Recently we know well what’s happening. It’s always difficult to forecast the future, anywayalways difficult to forecast the future, anyway we think that basically seems that the economic cycle is absolutely negative at the moment and most of middle class households are becoming low class households. U.S.A.
d E U b i t ld dand E.U. are becoming too old and no more competitive.
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PRODUCTION & CONSUMPTION TREND.TREND.
THE PRODUCTION INCREASE TREND IS MUCH LOWER THAN CONSUMPTIONMUCH LOWER THAN CONSUMPTION INCREASE TREND, IT SHOULD MEAN THAT PRICE LEVEL EXPECTATION SHOULD BE MUCH HIGHER THAN NOW.CONSEQUENTLY IT COULD CAUSE A CONSUMPTION REDUCTION IN E.U. AND U.S.A PASSING TO OTHER VEGETABLE OILS FOR SAVING MONEY
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FOR SAVING MONEY.
And what about the rest of the world?world?
Consumption trend of some new economies:economies:BrasilRussia;India;;China (BRIC Countries)
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GOLDMAN SACHS’ REPORTThe Goldman Sachs global economics team released a follow-up report to its initial BRIC study in 2004 Th t t t th t i BRIC ti th2004.The report states that in BRIC nations, the number of people with an annual income over $3,000, will double in number within three years and
h 800 illi l ithi d d Thireach 800 million people within a decade. This predicts a massive rise in the size of the middle class in these nations. In 2025, it is calculated that the
b f l i BRIC ti inumber of people in BRIC nations earning over $15,000 may reach over 200 million. This indicates that a huge pickup in demand will not be restricted to b i d b t i t hi h i d d ll
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basic goods but impact higher-priced goods as well.
OLIVE OIL GROWTH 2007-2012 IN INDIA(DATAS PROVIDED BY INDIAN OLIVE ASSOCIATION)
CGR(07-12)
2012MT
CGR(07-10)
2010MT
CGR(06-07)
2007MT
2006MT
%MTMT%MTMT
79%42,218123%25,54053%2,3001,500TOTAL
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Forecast for Olive Oil consumption in some Countries.in some Countries.
UNITED STATES based on 300,000,000 people : 0,85 Kg = 255,000,000 KG UNITED KINGDOM based on 59,778,002 people :0,78 Kg = 46,600,000 KGGERMANY based on 83,251,851 people:0,48 kg = 39,960,000 KG
S * b d 9 89 000 l 8 k 3 883 30 GAUSTRALIA* based on 19,189,000 people: 1,87 kg = 35,883,430 KGJAPAN based on 127,757,000 people: 0,22 kg = 31,939,250 KGBRAZIL based on 186,770,562 people: 0,10 kg = 36,420,260RUSSIA FED. based on 141,380,000 people: 0,10 kg = 14,138,000
b d lCHINA based on 1,321,851,888 people: 0,10 Kg = 132,185,000INDIA** based on 1,027,015,247 people: 0,10 Kg = 102,701,525TOTAL : 694,.827.465 compared to 418,557,491 (+ 66%)
It means a global consumption of about 3.537.000 Mt +21 % compared to 2007 (this is the optimistic opinion in the sense of not lack of olive oil in the world(this is the optimistic opinion, in the sense of not lack of olive oil in the world, which should be sustained by the olive oil production increase in the world) We also forecast a reduction of olive oil consumption in the main UE production Countries.
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PROBLEMS RELATED TO OLIVE OIL WORLD EXPANSIONOIL WORLD EXPANSION
THE KEY WORD IS “EDUCATION”MOST OF FOREIGN CONSUMER DON’T KNOW THE REAL CHARACTERISTICS OF A GOOD EXTRA VIRGIN OLIVE OIL SIMPLY BECAUSE THEY DON’T HAVE CONFIDENCE ABOUT THIS PRODUCTCONFIDENCE ABOUT THIS PRODUCT.THEY KNOW THAT OUT OF OLIVE OIL GRADES, EXTRA VIRGIN OLIVE OIL IS THE TOP ONE, BUT THEY DON’T LOVE THE STRONG TASTE.CONSEQUENTLY THERE IS A STRONG DEMAND OF “NEUTRAL OILS” (BY OLIVE OIL COMPANIES) WHICH ARE NOT CONTROLLED BECAUSE ANALYSIS ARE NOT ABLE TO DISCOVER THEIR PRESENCEABLE TO DISCOVER THEIR PRESENCE.NEUTRAL OLIVE OIL HAS LOW ACIDITY (WHICH IS ONE OF OTHER KEY WORD FOR A GLOBAL CONSUMER) AND NO TASTE. IT IS USED FOR LET BECOME “LIGHTER” IN TASTE AN EXTRA VIRGIN OLIVE OIL AND IT IS ILLEGAL.ONE OF THE MOST IMPORTANT CHALLENGES IS TO EDUCATE PEOPLE TOONE OF THE MOST IMPORTANT CHALLENGES IS TO EDUCATE PEOPLE TO RECOGNIZE THE REAL GOOD EXTRA VIRGIN OLIVE OIL WHICH IS HIGHER IN POLYPHENOLS CONTENTS AND CONSEQUENTLY IS REALLY AN HEALTHY PRODUCT.THE LAST BUT NOT THE LEAST, IS THE STRONG APPRECIATION OF THE EURO AGAINST THE MAIN CURRENCIES FIRST OF ALL USD IT IS CREATING A LOT
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AGAINST THE MAIN CURRENCIES, FIRST OF ALL USD. IT IS CREATING A LOT OF PROBLEMS DIFFICULT TO BE SOLVED.
OTHER OBSTACLES TO OLIVE OIL EXPANSIONOIL EXPANSION
STRONG TRADITIONAL CUISINE MIGHT AFFECT THE OLIVE OIL SALES;AFFECT THE OLIVE OIL SALES;STRONGER ATTENTION TO HEALTHY PRODUCTS COULD LET INCREASE THEPRODUCTS COULD LET INCREASE THE DEMAND.
BOTH FACTORS WILL PLAY A CRUCIAL ROLE FOR OLIVE OIL DEMAND ESPECIALLY IN CHINA AND INDIA WHERE LOCAL CUISINES
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ARE PLANTED DEEPLY.
THANK-YOU FOR YOUR KIND ATTENTIONATTENTION
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