EVOO Price drop? Let's see
After a prolonged period of difficulties, key players in the EVOO industry began to see a glimmer of hope. However, what seemed to be the end of the storm has transformed into a new crisis: an abrupt drop in prices that has shaken the sector.
The recent rains in Andalucia, although significant in several regions, do not guarantee a complete recovery. Although record rainfall has improved crop prospects, concerns remain about potential setbacks during flowering and harvest. Even so, these rains have breathed a ray of hope into a sector hit by years of adversity.
However, the initial euphoria has been overshadowed by a new threat: falling prices. Domestic demand has taken a hit, with reports indicating a 15% decline. This decrease has surprised many actors in the sector, who expected relative stability while the harvest capacities were defined.
The situation is even more complicated due to the strategy of some marketers who, anticipating a price increase in EVOO, purchased oil in large quantities. They now face the possibility that prices will not meet expectations, and may even decline further. This has sparked a rush to sell stock, putting additional pressure on prices.
Although the price decline has not yet been fully reflected in EVOO on supermarket shelves, producers and marketers are on high alert. They fear that the situation will get worse before it gets better, as excess supply may persist in the coming months.
However, some analysts suggest that this crisis could be a necessary step towards a gradual stabilization of the market. The precarious financial health of many companies in the sector does not allow them to assume additional losses, which could lead to a natural adjustment in prices.
Despite these hopes, uncertainty remains the dominant factor in the world of olive oil. As always, caution is reminded: until the olives are in the oil mills and the oil is bottled, the future of the olive oil market remains uncertain.
