SOURCE: ISMEA - A cut of 35% for the production of olive oil in the campaign 2014/2015 due to particularly adverse weather conditions. From the first evaluation by Ismea incollaboration with the organizations Aifo, Cno, Unaprol and Unasco the production of olive oil is expected to fall this year to 302 000 tonnes compared to 464 000 (ISTAT data) on the previous year. The reduction of over a third, say the analysts, is the result of an average that ranks in the middle of a range of estimates between 286 thousand tons (-38%) and 310 thousand tons (-33%). A significant drop - says Ismea - but less marked than that of Spain, the world leader, that due to the climatic negative has even half the level of production compared to 2013. Both in Puglia Calabria is expected to decline by more than a third of the quantities produced compared to 2013, while Sicily and Campania suffer cuts by 22 and 40 percent. Almost half the production in central Italy, with equally negative developments in the northern regions.
The market has already reacted to Italy with an increase in producer prices. The Italian oil, which maintains a large positive gap in comparison with the Spanish product, reached an average of 4.40 euro per kilo bits ex-mill, a value higher by almost 50% to the levels of last year. The spread with the Spanish oils saw in October the price differential between Rome and Madrid move rapidly to 1.47 euro per kilogram, compared with EUR 0.43 reported in 2013.
The Italian olive oils, as well as a higher price, which attests to the recognition of a higher quality from the international markets, are enjoying a boost in exports. Between January and July this year, overseas sales, thanks to advances in North America, Japan and the European Union increased in volume by 13% over the first seven months of 2013. Even more sustained dynamics of extra virgin olive oils, the most valuable product, with exports grew by 18% year on year.