Greekproducts.com
Olive Oil - Olive Husk Oil
Your are in : 
Main > Business to Business > Olive Oil - Olive Husk Oil
·
 · 
 · 
 · 
 · 
 · 
 · 
 · 
 · 
 · 
 · 
 · 
 · 


 · 
 · 
 · 
 · 
 · 
 · 

 ·  Post Demand  ·  Request Samples  ·  View Companies  ·  Register

Olive Oil - Olive Husk Oil


More than 750 million olive trees are cultivated world wide, the greatest number of which (c. 95%) being planted in the regions of the Mediterranean. About 3 / 4 of the global olive oil production come from the European Union, while around 97% of European production comes from Spain, Italy and Greece.

The history of olive oil in our country goes back into the centuries and even today thousands of families are occupied in its production. Greece is the third largest olive oil producing country world wide (after Spain and Italy), while the competitive advantage of Greek olive oil in relation to that of other countries is its fine quality.

One of the sector's characteristics is the existence of a large number of business units, which vary both as to their sizes as well as their activity. Olive oil is primarily produced at the olive presses. These are small sized, family run businesses, which are set up in oil producing areas. During the period of 1998 / 99, a total of 2,499 units were in operation. Following that, the edible oil is either directly offered for consumption, or further processed and / or bottled. Most companies which process and / or bottle it, are also involved in its distribution in bulk, while there are also other trading companies (wholesale) exclusively dealing with sales within Greece and abroad. Moreover, a number of co-operations and their Unions are busy in the production, trading and even the bottling of olive oil.

The production of olive oil in Greece has fluctuated between 300 and 400 thousand tonnes for most of the years in the last decade. About 2 / 3 of domestic production is covered by Crete and the Peloponnese and especially by the Counties of Heraklion and Messinia. Olive oil production is directly dependent on weather conditions from year to year in the olive tree agriculture areas. For this reason, production is marked by serious fluctuations in volume per year, and remaining reserves constitute a significant quantity. Also, a "good" olive oil producing year in a particular area, is followed by a "bad" one.

About one half of the annual olive oil production in Greece is exported. Greek olive oil exports are estimated for the last five-year period (1994 / 95 - 1998 / 99) to have come up to a mean 140 thousand tonnes per year, while only 7 to 10 thousand tonnes reflect the bottled product. Greek exports primarily target countries of the European Union, the main recipient being Italy, which receives about 3 / 4 of our total exports.

The domestic olive oil market is going through a maturing phase, as the per capita consumption is already high and does not show any significant annual fluctuations. During the last five-year period, the average annual domestic olive oil consumption is estimated to have been around 170 thousand tonnes. The largest part of that (42%) relates to self-consumption, the quantities of loose product which is traded by producers themselves or travelling sellers come up to 33%, while the bottled olive oil covers just about 25% of the total domestic consumption.

The prime-defining factor in the demand of olive oil is its price, which shows considerable fluctuations (dependent on the size of production and the yearly reserves), in conjunction with the prices of competitive seed oils and the available income of consumers. Advertising substantially contributes to the product's promotion, while the campaign for the multifaceted benefits from olive oil on the basis of international accredited research influences the nutrition customs of consumers.

Keeping in mind the above and given the relatively high per capita consumption of olive oil (loose and bottled), development prospects may arrive through the broadening of the exporting activity. As regards the bottled olive oil, however, Italy and Spain keep the first places in the international market, something that can change with difficulty. However, by applying the appropriate marketing policies and projecting the relative advantage of the Greek olive oil, which is its quality, it is possible to strengthen its position in the international market. Already the first steps in advertising and campaigning for Greek olive oil worldwide have begun and certain positive results have taken place. However, the high advertising costs necessary form a restraining factor in the intensification of the campaign effort.

The actual domestic olive oil consumption is anticipated to show stabilising trends for the periods of 1999 / 00 and 2000 / 01. It is anticipated that it will be in the area of about 170.000 tonnes, without, of course, precluding any possible fluctuations due to external factors (i.e. Climatic Conditions), which may affect production, and by extension olive oil pricing.

Olive husk oil is primarily produced at appropriate mills, which process the olive husk. In those facilities unprocessed olive husk oil (bruto) is produced and is either exported in its unprocessed state or transported to processing plants. Few are the facilities, which have refineries for the product's treatment, while usually it is different business units, which deal with bottling and packaging. During the period 1998 / 99 there were in operation 26 mills, 15 refineries and 10 combined business units for the whole of the country.

Domestic olive husk oil production was around 40.000 tonnes annually for the last tree (3) periods (1996 / 97 - 1998 / 99). This, however, pertains to the unprocessed product (bruto), which is not edible. Its largest portion is exported in unprocessed form and minute quantities only are refined.

Greek exports of olive husk oil are estimated for the last decade to have come anywhere between 20 and 40 thousand tonnes annually. The main target countries for Greek olive husk oil are the countries of the European Union. Italy and Spain hold the first positions in the international olive husk oil market, while at the same time they are our most important customers for bruto. Companies in these countries import unprocessed olive husk oil at low prices, they process it, usually mix it with seed oil and following that they export it, something which is prohibited in Greece by law.

The strong exporting character of olive husk oil results in its absorption being dependent on outside demand. The product's domestic consumption is at low levels (between 2,5 and 3 thousand tonnes for the last five year period). However, as long as its price is at significantly lower levels than that of seed oil, domestic demand is not anticipated to show serious differences to what it is now any time soon (around 2.800 tonnes). Of course, possible fluctuations due to external factors (i.e. Climatic Conditions), which are likely to affect the level of production, the extent of supply and, therefore, the pricing of olive husk oil, are not ruled out.

Source: Athens Chamber of Commerce & Industry



© 2005 Greekproducts.com. All rights reserved. Privacy Policy