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The Market In The Olive Oil Industry

The Mediterranean region is the queen of olive oil production and the European Union countries are the major olive oil producers in the world. They are not only the leaders in the production, they are also the leaders in the consumption, followed by Tunisia and Turkey.

Outside of the European Union countries, USA is the biggest market in olive oil, followed by the rising markets of Australia, Canada, Japan, Brazil and Chile. Although the consumption of olive oil is increasing the last 15 years, the production exceeds the demand, resulting in the trade to become a very important element in the olive oil market.

The production, consumption, demand and trade numbers vary every year, according to developments in the global market. The developments are necessary for active export policies for the expansion and the appearance of new opportunities from free trade in the new markets.

Spain, Italy, Greece and Tunisia are Turkey’s main compeditors in the olive oil market. To access the exporting performance of a country, a constant market share analysis is used.  That analysis measures the exporting and importing values of that country’s trading partners.

The constant market share analysis is a technique to measure growth and performance. This analysis also points a country’s trade patterns, trade performances and other factors of competitiveness of the Turkish olive oil sector. Changes in the olive oil market, helps the development of better tools for assisting decision makers in the agricultural policies.

The growth rates of consumption are determining the markets. The olive oil imports in the USA, Canada, Australia, Brazil, are growing by 2.5% yearly. Prices and trade, effect the olive oil production of the European Union countries. Tunisia follows Spain, Italy and Greece in exports, with 100,000 tons yearly.

The constant market share analysis separates descriptive from interpretative purposes. It identifies the size of the market, the commodity and competitiveness effects.

To be continued.

La Tienda

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