The private storage aid scheme for olive oil adopted in November 2019 was concluded today, with the last tendering procedure supported by Member States. Overall, the scheme covered a total volume of 213,500 tonnes of olive oil, representing about 27% of total EU stocks at the beginning of the marketing year 2019/20.
The fourth and last tendering procedure concluded on a maximum aid of €0.83 per day per tonne for extra virgin, virgin and lampante olive oil for a volume of 41,600 tonnes, to be stored during at least 180 days.
Commissioner for Agriculture and Rural Development Janusz Wojciechowski said:
After months of market imbalance, I’m proud to see the last tendering under the private storage aid scheme for olive oil conclude on a positive note. It is too early to see the full impact of the support measure, but first signs of price recovery are already visible. The European Commission has shown once again its commitment and support to European farmers, especially when faced with market disruption.
Following important stocks at EU level as well as consecutive good harvests, creating an imbalance between supply and demand and a price decrease, the European Commission approved a private storage aid scheme aimed at stabilising the market and increasing prices. The scheme operated through four tendering procedures, with the first one in November 2019 and the last one concluded today.
Overall, most offers came from Spain, where the market is particularly under pressure and stocks are exceptionally high. The third tender was the most successful, when a majority of the total stock entered the scheme.
Despite early signs of improvement, it will take more time for the full impact on EU olive oil prices to become visible. The Commission will remain vigilant and continue to monitor closely market developments in the olive oil sector.
Background
The European Union is the leading producer, consumer and exporter of olive oil. Since 2013, on average the EU has produced 68.4%, consumed 54.2% and exported 66.9% of the world’s olive oil. Spain is the most important olive oil producer of the Union, followed by Italy, Greece and Portugal.
Over the last months, the EU olive oil market has suffered from very low prices due to an excess in supply following harvest 2018/19 and exceptionally high stocks at EU level estimated at 783,600 tonnes for 2018/19 (84% of which in Spain).