Hit by Oversupply, EC Announces Storage Aid for Olive Oils

The European Commission (EC) adopted private storage aid for virgin olive oils in November last year to prop up prices hit by an oversupply of oil.  The excess in supply following the 2018/19 harvest resulted in low prices over the last few months in Greece, Portugal and Spain, according to the EC. For example, the price of Spanish extra virgin olive oil as of mid-October was 33% below the five-year average. Similarly, the price of Greek virgin olive oil was 13.5% lower than the five-year average.  

The scheme would operate through a tendering procedure for a maximum of four periods to allow for flexibility and measured market management. The aid would be granted to oils in bulk of the different types of virgin olive oils: extra virgin, virgin and lampante olive oil, the EC said.  For private storage aid to have an effect, the oils should stay in storage for a minimum of 180 days and the minimum quantity per tender should be 50 tons. The EC said tenders could only be submitted in Croatia, Cyprus, France, Greece, Italy, Malta, Portugal, Slovenia and Spain. The private storage scheme was expected to alleviate the pressure and contribute to rebalance the market.