What can olive oil mills do to face the current situation of the sector?

Visibility and readiness are crucial to maintain a good positioning and to ensure the survival of companies

 SO WHAT IS HAPPENING? An analysis by Juan Vilar

A similar situation has never happened before in the history of the olive oil industry. A bad harvest has led all the actors in the value chain to lose money. On top of this decline, there has been an increase in the price of fertilizers, fuels and energy, as well as a rise in financial rates. This crop year and related circumstances are creating a situation of extreme vulnerability for the members of the olive oil sector chain.

Having help is necessary in situations of weakness so as to be able to face them with guarantees and overcome them. Advocacy, anticipation, readiness and taking action are the ways to succeed in these difficult times. Waiting until the last moment can be devastating.

Harvest prospects for the coming season are no better. We will find an almost non-existent linkage with this season and a similar or even worse harvest. This implies that the supply for the next crop year will be lower than the potential demand. The sole regulatory mechanism for a potential shortage situation is the price. Then prices will continue to rise. This market self-regulation triggers an inevitable decline in consumption so that the latter, via the price, adjusts to the actual supply. Therefore, price hikes will gradually reduce consumption, leading households to a partial shortage caused by the high prices on the shelves.

AND WHAT ABOUT THE FUTURE?

The change in the current cycle —which will come— will reverse the supply and price situation abruptly, and will have devastating effects on the sector, as production costs will remain high and consumption deteriorated in a scenario of oversupply, whereby prices will drop, also breaking records, but at a downward trend.

This shift in trends will be due to a combination of vectors: climate, surface area and production, with consumption being affected

HOW TO PREPARE FOR THIS SITUATION?

In this case, marketing, dissemination, actions aimed at promoting your products, attendance at events, trade fairs, etc. are all essential to boost your business and prevent these exceptional situations from undermining your solidity and putting your company in a risky situation.

By attending the WOOE as an exhibitor, you have at your disposal a key networking opportunity to strengthen your position in a potential new market, increase your visibility and enhance your reputation as a leading supplier or buyer.

Considering the tough and challenging year we are facing, the WOOE is now working harder than ever to provide the best business platform for the sector.

We are focusing on what olive oil professionals need here and now, proposing tools tailored to the needs of each and every one of them.

• A greater commitment to bringing in strong international buyers: We are already working with major agencies so that these buyers can meet the needs of each exhibitor.

• The greatest showcase for olive oil. Business is the key, and you have to pay attention to it even when you don’t have any olive oil to sell. That’s why we want to be the primary showcase for you to promote your brand, expand your network of contacts and maintain your position in the market.

• Creating synergies: every year, the WOOE attracts a growing number of influencers, restaurateurs, distributors, gourmet stores and media looking for new approaches and viewpoints. This is the place where new ideas and business opportunities can be found.

• Expanding the possibilities of the olive oil world: olive oil tourism, pairings, new technologies, alternative products… The future of the olive oil industry will also be in the spotlight at WOOE 2024.

• We also aim to help you to have the widest possible dissemination, which is why we make our database available to you, so that, once you are registered, we can share with all our contacts your business information and the messages that you decide to convey.

 

🎯  In a particularly challenging year for the industry, rely on the tools that work!

🎯 Boost your market presence and find new partnerships to strengthen your business!

🎯 Contact us; we will help you find the best choice for your company!