The latest report from Spain’s Olive Oil Agency (AAO), shows Spain’s 2012 olive oil output reached a record 1.61 million tons, up 16% on 2010/2011. Exports, provisionally put at 640,600 tons to the end of June 2012, are also at record levels and the total remaining olive oil stocks stand at 1.06 million tons. At the present time private storage (see earlier articles) aid from the European Commission is temporarily keeping 203,000 mt of Spain’s stocks of virgin olive oil off the market and total output for next season is predicted to be half this year’s record breaking harvest.
A large number of producers are holding on to their stocks betting that prices will continue to rise. A cautionary warning has come from the packers, who have argued that producers may be disappointed because even though the forecast is very poor, production has generally always exceeded expectations.
One thing is for sure – Prices are up and they will remain so for the foreseeable future.