EU-MED Agpol Annual Meeting Istambul 9-12 May 2005 Characterisation of European Olive Oil

1. EU-MED Agpol Annual Meeting Istambul 9-12 May 2005 Characterisation of European Olive Oil Production and Markets (Deliverable 10) Dr Samir Mili CSIC, Madrid

2. Position of Europe in olive oil world production and trade; • Macro-level importance: Participation in agricultural output, land use, employment, share in agricultural trade • II. Socio-economic and regulatory environment: Consumption trends; Regulatory framework; Technical framing and organisational issues

3. Olive and olive oil production systems; Economic organisation and structure: Farms, mills, refiners and packers • IV. Marketing structures and business strategies: Operators; Marketing channels; Predominant strategies: product valorisation, target markets

4. Marketing at origin/storage Milling and storage Refining Bottling/Canning Marketing/Export Refining facilities Mills Olive oil Co-operative mills Refining facilities-bottling plants Marketing at origin/storage Milling and storage Bottling/Canning Marketing/Export Structure of the olive oil production and marketing chain (general scheme). Source: Based on MAPA (2004) Mills Virgin olive oil Co-operative MilIs Bottling/canning plants Large trading enterprises at origin Extraction of olive pomace Milling and storage Refining Bottling/Canning Marketing/Export Extraction facilities Refining facilities Mills Olive pomace oil Mills-Extraction facilities Refining facilities- bottling plants Extraction and refining facilities

5. World Olive Oil Market Macro Figures 1990/91–2003/04 (1) Only extra-EU (2) Average compound rate Source: Based on IOOC data

8. Exports of olive oil of the main exporting EU countries (2003; t) Source: Based on Eurostat, IOOC (2004).

9. Imports of olive oil of the main inporting EU countries (2003; t) Source: Based on Eurostat, IOOC (2004).

10. Chief Non-Traditional Purchasers of Olive Oil 1990/91–2003/04 (1) Includes intra + extra EU imports (2) Average compound rate Source: Based on IOOC, Eurostat, National Accounts data

11. Price DNT DT ET1 Pr ET2 DNT DT A suggested demand model for olive oil in traditional and non-traditional markets Source: Mili (2004) Quantity

12. Area cultivated with olives, yields and production Source: Based on Eurostat (2005).

13. Economic data relating to olive-growing in the EU, 1995-99 (1) FADN data, (2) Based on the average number of applications, (3) based on Oliarea data. Source: European Commission (2003).

14. Economic data relating to olive-growing in Spain, selected years (average holding) Source: Based on MAPA-RECAN data, various years.

15. Olive oil processing in the EU (1998-99) Source: Member States Statistics, European Commission (2003).

16. Developments in the oils & fats and food industry in Spain Source: Based on INE, Encuesta Industrial data (various issues).

17. Evolution of market concentration and corporate structure in the Spanish olive oil market(Source: Based on Alimarket, various issues)

18. Main brands of extra virgin olive oil bought by Italian households (in value) Source: Based on Households Panel Ismea/AC Nielsen, ISMEA (2004).

19. Main brands of blended olive oil bought by Italian households (in value) Source: Based on Households Panel Ismea/AC Nielsen, ISMEA (2004).

20. Main market features • Relative low level of internationalisation • Rapid increase of world production • Relative saturation of domestic demand in main producer countries (EU) • Demand increase in emergent, non-traditional markets • Substitution, cheaper oils competition

21. Vulnerability sources for EU producer regions • CAP subsidies reduction • Imbalance uses/supplies • South Med. competition ( 2 segments: bulk non-differentiated EU market, differentiated emergent markets) • “New World oils” competition (long term)