1. Characterisation of European Olive Oil Production and Markets
EU-MED Agpol Annual Meeting
Istambul 9-12 May 2005
Characterisation of European Olive Oil
Production and Markets
(Deliverable 10)
Dr Samir Mili
CSIC, Madrid

2. Position of Europe in olive oil world production and trade;
Macro-level importance: Participation in agricultural output, land use, employment, share in agricultural trade
II. Socio-economic and regulatory environment: Consumption trends; Regulatory framework; Technical framing and organisational issues

3. Olive and olive oil production systems; Economic organisation and structure: Farms, mills, refiners and packers
IV. Marketing structures and business strategies: Operators; Marketing channels; Predominant strategies: product valorisation, target markets

4. Structure of the olive oil production and marketing chain
(general scheme). Source: Based on MAPA (2004)
Milling and storage
Marketing at
origin/storage
Refining
Marketing/Export
Olive
oil
Bottling/Canning
Virgin
olive
pomace
Extraction of
olive pomace
Mills
facilities
Co-operative mills
Refining facilities-bottling plants
Co-operative MilIs
Bottling/canning plants
Large trading enterprises at origin
Extraction
Mills-Extraction facilities
Refining facilities- bottling plants
Extraction and refining facilities

5. World Olive Oil Market Macro Figures
1990/91–2003/04
Av./
campaign
(1000 t)
CV (%)
Min
Max
% Var.
Av. 97/98-03/04 //
Av. 90/91-
96/97
Av. annual
% growth(2)
Production
2271.1 21
1453.0
3162.0
36.0
6.2
Consumption
2244.9 16
1666.5
2763.0
32.2
4.0
Exports(1)
409.8 24
256.5
625.0
41.1
4.9
Imports(1)
422.6 19
288.5
551.0
34.8
3.7
(1) Only extra-EU (2) Average compound rate
Source: Based on IOOC data

8. Exports of olive oil of the main exporting EU countries
Virgin
Lamp-
ante
Olive oil
TOTAL
Total
Intra EU
Extra EU
France
Greece
Italy
Portugal
Spain
Other countries
3,105
72,912
181,470
5,793
363,718
5,029
1,869
65,351
90,571
1,856
309,045
4,659
1,236
7,762
90,899
3,937
54,674
168 41
20,676
4,333
705
49,581
233
508
3,120
91,558
10,901
99,991
3,951
472
2,381
9,616
611
50,759
3,290 36
739
81,942
10,290
49,232
661
3,654
96,709
277,360
17,399
513,290
9,203
2,371
88,380
104,246
2,886
408,173
8,001
1,283
8,329
173,114
14,513
105,117
1,202
Total EU
632,027
473,352
158,676
75,559
210,029
67,129
142,900
917,615
614,057
303,558
Source: Based on Eurostat, IOOC (2004).

9. Imports of olive oil of the main inporting EU countries
Virgin
Lamp-
ante
Olive oil
TOTAL
Total
Intra EU
Extra EU
France
Greece
Italy
Portugal
Spain
Germany
Gr.Britain
Other countries
88,616
3,114
354,529
34,226
13,861
34,257
34,463
34,402
88,499
3,109
327,759
34,106
9,383
34,120
34,409
34,263
117 4
26,770
120
4,478
138 54
140
483
505
83,262
2,863
14,104 73
717
491
6,665
408
47,663
16,462
9,769
3,907
16,076
9,670
16,836
16,264
221
3,904
16,062
9,648
30,828
198
9,548 3 13 22
95,764
4,026
485,454
53,551
37,733
38,237
51,256
44,565
95,647
4,021
403,060
53,233
18,193
38,095
51,188
44,404
82,394
318
19,540
142 68
163
Total EU
597,468
565,648
31,821
102,498
110,620
70,008
40,612
810,586
707,841
102,746
Source: Based on Eurostat, IOOC (2004).

10. Chief Non-Traditional Purchasers of Olive Oil
1990/91–2003/04
Country
Av./
campaign
(1000 t)
CV (%)
Min
Max
% Var.
Av. 96/97-
02/03 //
Av. 90/91-
95/96
Av. annual
% growth(2)
USA
144.5 29
87.5
200.0
64.6
6.3
Germany(1)
24.0 50
9.8
40.8
159.2
11.2
UK(1)
24.9 52
6.8
47.0
141.0
15.7
Australia
21.2
12.5
31.5
56.7
5.5
Brazil
20.7 25
11.0
29.0
35.8
3.5
Japan
19.2 59
4.0
34.0
197.2
16.9
Canada
18.0 32
10.0
25.5
70.4
7.3
Switzerland
5.8 47
3.0
130.6
9.7
Netherlands(1)
4.6 62
1.0
9.4
172.4
18.8
Mexico
3.8 79
207.7
(1) Includes intra + extra EU imports (2) Average compound rate
Source: Based on IOOC, Eurostat, National Accounts data

11. Price DNT DT ET1 Pr ET2 Quantity
A suggested demand model for olive oil in traditional and non-traditional markets
Source: Mili (2004)
Price Pr
Quantity
ET1
DNT DT
ET2

12. Area cultivated with olives, yields and production
Indicator
Unit
Spain
Italy
Greece
Portugal
France
EU-15
Area with olives
2000
2001
2002
1000 ha
2,486
2,427
2,169
1,162
1,165
1,170
765
767
369
370 17
4,799
4,745
4,494
Yield
100 kg/ unit
19.9
28.8
19.0
24.2
28.9
27.6
24.8
25.5
4.7
6.3
6.0
10.8
10.3
12.6
21.2
26.3
Olive Production
1,000 t
4,945
6,981
4,111
2,810
3,364
3,231
2,215
1,900
1,955
175
323
223 18 21
10,163
12,495
9,542
Source: Based on Eurostat (2005).

13. Economic data relating to olive-growing in the EU, 1995-99
Spain
Italy
Greece
Portugal
Hectares of olive groves per AWU (1)
19.2
5.3
2.1
9.6
Average prod. in kg of oil per holding (2)
1,912
579
793
454
Average yield in kg of oil per hectare (3)
315
384
401 82
Average yield in kg of oil per hectare (1)
590
810
860
170
(1) FADN data, (2) Based on the average number of applications, (3) based on Oliarea data.
Source: European Commission (2003).

14. Economic data relating to olive-growing in Spain, selected years (average holding)
1991
1994
1998
2002
Number of holdings (total sample)
297
158
192
276
Agri. utl. Area (AUA) (ha)
17.9
35.1
18.3
11.3
Total labour force (AWU)
0.8
2.0
1.9
1.2
Family labour force (AWU)
0.7
1.0
0.6
Gross output (1,000 €)
12.6
30.3
14.6
Gross crop production (1,000 €)
12.5
17.8
14.4
Expenses (1,000 €)
8.2
14.8
22.2
10.3
Gross Value Added (f.c., 1,000 €)
12.3
18.2
39.5
17.1
Net Value Added (f.c., 1,000 €)
10.9
15.4
35.5
16.0
Prod/total AWU (1,000 €)
8.9
12.2
NV Added/ total AWU (1,000 €)
7.7
18.7
13.3
Source: Based on MAPA-RECAN data, various years.

15. Olive oil processing in the EU (1998-99)
Spain
Italy
Greece
Portugal
Refining facilities 29 13 27 8
Facilities for olive pomace oil 53 45 42
Packing plants
440
300 90 49
Table-olive packing stations
404
256 30
Source: Member States Statistics, European Commission (2003).

16. Developments in the oils & fats and food industry in SpainFI
Oils & fats
Oils & fats/ FI (%)
Nº of enterprises
1989
2002
41,560
22,457
1,936
1,425
4.7
6.3
Working-power (persons)
1990
364,521
371,738
13,427
11,398
3.7
3.1
Production
(Mill. €)
34,829
64,523
3,208
5,531
9,2
8,6
Value added
9,617
15,297
432
688
4.5
Exports
2,476
5,092
547
1,287
22.1
25.3
Imports
2,636
5,892 67
335
2.5
5.7
Source: Based on INE, Encuesta Industrial data (various issues).

17. Major capital ownership
Evolution of market concentration and corporate structure in the Spanish olive oil market (Source: Based on Alimarket, various issues)
1986
1997
2003
Entreprise/Holding
Market share
Major capital ownership
ACEITES ESPAÑOLES HOLDING
Carbonell
Elosua
Sotoliva
KOIPE HOLDING
Koipe
Salgado
ACEITES COSTA BLANCA
ACEITES TOLEDO
YBARRA
ACEITES DEL SUR
INDUSTRIAS PONT
GRUPO FAIGES
UTECO-JAÉN
MATEO
2 LEADING (C2)
4 LEADING (C4)
10 LEADING (C10)
27.2
16.7
7.8
2.7
16.9
8.7
8.2
9.4
5.0
4.0
3.5
2.4
2.3
1.7
1.5
44.1
58.5
73.9
Nnal Private Cap.
Lesieur Group
Nnal Private Cap. Nnal Private Cap. Nnal Private Cap. Nnal Private Cap. Nnal Private Cap.
Cooperative
Mecisa
AGRA
AGRIBÉTICA
BORGES-PONT
MUELOLIVA
MALEVA
33.0
19.2
6.3
3.7
3.2
0.6
9.7
7.0
6.0
5.9
4.6
2.8
42.7
55.7
77.6
Eridaria Beghin-Say
Unilever
Frint-Frahuil
Nnal Public Cap.
SOS HOLDING
SOVENA
ACESUR HOLDING
Aceites del Sur
Coosur
YBARRA-MIGASA HOLDING
Oleomasia
Ybarra
EROSKI HOLDING
AOPIBERICA
HOJIBLANCA
26.0
17.5
7.2
0.8
0.5
12.1
11.8
5.8
11.1
4.1
4.9
2.6
38.1
61.0
81.5
SOVENA Comercio
Cargill España

18. Main brands of extra virgin olive oil bought by Italian households (in value)
2003
2002
2001
Var. % 2003/02
Total (million €)
612,005
575,695
571,846
6,3
Share in %
Var. share
1 Van den Bergh
13.3
13.4
13.8
-0.1
Bertolli
11.8
8.9
9.3
2.9
Dante
1.2
1.4
1.6
-0.2
San Giorgio
0.3
3.1
-2.8
2 Carapelli
11.3
11.5
11.7
Delizia
3.2
Il Frantolio
5.5
6.1
5.7
-0.6
Le Macina
0.4
Oro Verde
1.0
1.3
-0.3
3 Private labels
9.5
10.2
10.1
-0.7
4 Monini
7.8
7.6
0.2
5 Salov
4.5
4.4
0.1
6 Farchioi
2.8
2.1
7 Sasso
2.3
2.6
Other brands
48.6
47.8
47.5
0.8
Source: Based on Households Panel Ismea/AC Nielsen, ISMEA (2004).

19. Main brands of blended olive oil bought by Italian households (in value)
2003
2002
2001
Var. % 2003/02
Total (million €)
-4.1
Share in %
Var. share
1 Van den Bergh
29.3
32.5
32.0
-3.2
Bertolli
12.7
13.8
13.1
-1.1
Dante
16.4
17.4
16.5
-1.0
San Giorgio
0.2
1.3
2.4
1.1
2 Sasso
12.2
10.7
10.5
1.5
3 Private labels
11.0
11.1
1.2
4 Carapeli
9.8
9.1
8.6
0.7
5 Monini
3.2
2.5
2.0
6 Coricelli
2.7
2.3
7 Salov
2.6
2.2
0.6
8 Farchioni
-0.1
Other brands
27.4
29.0
30.6
-0.6
Source: Based on Households Panel Ismea/AC Nielsen, ISMEA (2004).

20. Main market features Relative low level of internationalisation
Rapid increase of world production
Relative saturation of domestic demand in main
producer countries (EU)
Demand increase in emergent, non-traditional
markets
Substitution, cheaper oils competition

21. Vulnerability sources for EU producer regions
CAP subsidies reduction
Imbalance uses/supplies
South Med. competition ( 2 segments: bulk non-differentiated EU market, differentiated emergent markets)
“New World oils” competition (long term)