Olive Markets within the European Union

Olives are the fruit of a small tree endemic to the Mediterranean basin and they are harvested during the region’s fall season, between September and December. These small dark and green fruits have been cultivated from Anatolia (Turkey) to the Iberian Peninsula for thousands of years. Containing important amounts of calories and vitamin E, olives are a central part of the Mediterranean’s diet and culture. Furthermore, olives are not only used for culinary purposes, but also in the confection of consumer goods, such as oil and soaps. Therefore, significant markets for olives exist in middle and upper income countries throughout the world. However, olives can be considered a niche product because of their high quality and considerable production costs, which stem from the fact that olive trees need to grow for anywhere between five to ten years before yielding fruit at full capacity.

Currently, the largest producers of olives are still located throughout the Mediterranean region, which accounts for more than 90% of the global olive production. In recent years, the largest olive producer has been Spain, yielding approximately 7 million metric tons of olives annually. The other leading olive producers are Italy, Greece, Turkey, and Morocco. This article explores the status of olive markets in Italy.

Olive Markets within the European Union

Italy is the second largest olive producer within the European Union, and the world, with an annual output of more than 3 million metric tons. Similarly, Italy devotes more than 1 million hectares of land to olive cultivation, mainly within the southern regions of Calabria and Puglia or Apulia. There are hundreds of olive varieties throughout the Mediterranean; however, the leading varieties cultivated in Italy include Carolea, Nocellara del Belice, Ogliarola, and Coratina. Furthermore, the country has more than 250 million olive trees throughout some 700.000 farms, 70% of which are concentrated in the southern regions of Calabria, Puglia or Apulia, and Sicily.

Within the Italian olive market, a significant amount of the output is destined for the production of oil, particularly extra virgin olive oil. Olives destined for oil production are usually handpicked and pressed on the same day, which increases their quality and value. During 2015/16, Italy produced some 475.000 metric tons of olive oil. However, this amount is expected to decrease to approximately 245.000 metric tons during 2016/17 due to unfavorable weather variations.

The average Italian consumes 11 liters of olive oil annually, particularly the extra virgin variety. Therefore, in spite of being a major olive producer, Italy is a net importer of olive oil due to the size of its domestic market. During 2015, Italy imported more than 580.000 metric tons of olive oil, mainly from Spain, with about 333.000 metric tons worth of imports, and Greece, accounting for 138.000 metric tons of olive oil. Meanwhile, in 2015, Italy exported little over 320.000 metric tons of olive oil, mainly towards the United States, with almost 100.000 metric tons of olive oil worth of exports, and Germany, totaling more than 40.000 metric tons of purchased oil.

(Read more about Agricultural Markets and Food Processing in Italy)