Thus we are going to turn the Aove boom into a problem

Today’s is good news; That is, today is a bad news: in the first quarter of the year 81.32 million liters of olive oil were sold. That represents an increase of 47.15% compared to last year. And I know, they seem huge figures, but the story doesn’t end there.

If we look at virgin olive oil, growth is 64% (81.32 million liters). These data are not just the radiography that has just presented The National Association of Packaging Industrialists and Oil Refiners, are a prophecy for the future.

Because, as I always say, this is good news. After years of crisis in the sector, olive oil needed a good year. And it seemed that it was this. A good harvest, an avida demand for low prices, a favorable international situation (or at least not harmful) … This was the year of recovery.

But, as we have been counting, the market has been deeply unbalanced. Something that has already caused ‘losses’ of a one billion euros and an air of stupor in the sector. Above all, now that we know that demand is so great that the campaign will not be enough.

But what does all this affect us?

In a link problem. What in the jargon of the sector is called “oil link” is the amount of olive oil that is available at the end of a campaign and that is transferred to the next campaign.

As oil is an annual product, the “link” is not only the mattress that ensures that there is oil available the months before the new harvest; It is the mechanism which allows to contain the price of oil and avoid large fluctuations. Not having a link is a headache.

One internationally. Because The data handled by the European Commission say that Portugal has dropped its offer by 10% and that Greece are also down. That is, because, at this rhythm, the final stocks of the entire Union (about 371,586 tons) will be almost 30% lower than the average of the last five campaigns.

In Spain in particular, the link (the stocks that remain between campaigns and that help ‘control’ the price) will be 18%.

That is what is going to mark the whole summer: until we finally know the capacity of next year, Prices are going to be a carousel.

Image | David Clode | Frank Albrecht

In Xataka | Before the escalation of olive oil, thousands of Spaniards are making a radical decision: to go to Portugal