The inexorable decline of Italian extra virgin olive oil: last for investments and trade

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We are at the “extra virgin of citizenship”. A social phenomenon, not a market one. In Italy there are still active 619 thousand olive farms, many more than those that produce fruit (330 thousand), cereals (325 thousand), wine (255 thousand). But despite this significant number, the Italian production of olive oil is in constant decline. In fact, from 2010 to today it has almost halved, going from 500,000 tonnes to the 270,000 expected for the 2022-23 campaign.

And this above all because 42% of Italian companies have less than two hectares of olive groves, which means that just under half of the olive farms are dedicated to hobby production or production intended only for self-consumption. In fact, only 2.5% of Italian companies have more than 50 hectares against 7.5% in Spain. These are the numbers announced by Nomisma on 14 February during the presentation of the results of the supply chain agreement signed in 2018 between Confagricoltura and Carapelli Firenze.

“These are figures that outline an olive growing that should be considered more as a social phenomenon than a real productive sector – said Denis Pantini of Nomisma –. And even more worrying numbers emerge from the data on ininvestments in which Italy is bringing up the rear. Between 2011 and 2021, in fact, the olive grove surfaces increased by 41.6% in Chile, by 39.5% in Argentina, by 22.6% in Morocco, by 11.4% in Turkey, by 10.9 % in Portugal, 5.4% in Spain (therefore also growing in what is already abundantly the world’s productive leader), even 0.4% in France while olive grove surfaces fell by 3.5% in Italy. Numbers also confirmed by the figures on world trade in olive oil. Between 2011 and 2021, Turkey’s exports increased by 16.4%, that of Portugal by 14.8%, Tunisia by 9.8%, Chile by 9.7%, France by 8.2%. Compared to an average of world trade increased by 6.2% in ten years, that made in Italy increased by only 3%. In these conditions in a few years Italy will remain a marginal player and will be overtaken by new and old players in the oil sector».

We need to quickly run for cover. AND the main road is that of supply chain agreements like the narrow one in 2018 between Carapelli Florence and Confagricoltura.
«An agreement that has allowed the marketing of olive oil for around 25 million euros – he commented Anna Cane di Carapelli Firenze – guaranteeing fair remuneration for producers and a quality product for consumers. Now we want to raise the bar with this tool both in terms of product quality and with regard to the challenge of sustainability».

«Confagricoltura and Carapelli – added the president of Confagricoltura Massimiliano Giansanti – in 2018 they shared the opportunity to explore some crucial issues for the olive oil sector and to define a common project. Today, after five years, following an intense work of exchange and comparison, we can say with satisfaction that the agreement with Carapelli Firenze is a successful experience, which was ahead of its time and which we will certainly continue to share challenges always more innovative and stimulating. Now we hope that the supply chain agreement guaranteeing income stability and certainties for producers can also be the viaticum to push them to invest more in olive growing”.