How to Become a Successful Olive Oil Exporter in 2021
Olive oil is one of the most popular and healthy edible oils in the world. It has a long history of cultivation and consumption, dating back to ancient times. Olive oil is produced from the fruit of the olive tree, which grows mainly in the Mediterranean region, but also in other parts of the world. Olive oil has many benefits for human health, such as lowering cholesterol, preventing inflammation, and protecting against oxidative stress. It also has a distinctive flavor and aroma that enhances the taste of many dishes.
If you are interested in becoming an olive oil exporter, you need to know some important facts and tips about this lucrative business. Here are some of them:
1. Know your market
Olive oil is consumed in different ways and for different purposes in different countries. For example, in Europe, olive oil is mainly used for cooking and dressing salads, while in North America, it is also used for baking and frying. In Asia, olive oil is gaining popularity as a healthy alternative to other oils, especially among the middle and upper classes. You need to research the preferences and needs of your target market and tailor your product accordingly.
2. Know your product
Olive oil comes in different grades and qualities, depending on the type of olives, the harvesting method, the extraction process, and the storage conditions. The main categories are extra virgin olive oil, virgin olive oil, refined olive oil, and pomace olive oil. Extra virgin olive oil is the highest quality and most expensive one, as it is obtained from the first cold pressing of fresh olives, without any chemical or thermal treatment. It has a low acidity level (less than 0.8%) and a high content of antioxidants and polyphenols. Virgin olive oil is similar to extra virgin olive oil, but with a slightly higher acidity level (less than 2%). Refined olive oil is obtained from lower quality olives or from virgin olive oil that has been refined to remove impurities and defects. It has a neutral taste and color, but also a lower nutritional value. Pomace olive oil is obtained from the residue of the olives after the extraction of virgin olive oil. It is usually mixed with some virgin olive oil to improve its flavor and quality. You need to know the characteristics and benefits of each type of olive oil and choose the one that suits your market and price range.
3. Know your competitors
Olive oil is a highly competitive market, with many producers and exporters around the world. According to the International Olive Council (IOC), the top exporters of olive oil in 2021 were Spain ($3.87 billion), Italy ($829 million), Greece ($677 million), Tunisia ($600 million), and Morocco ($23.8 million) . These countries have a long tradition and reputation in producing high-quality olive oil, as well as strong distribution networks and marketing strategies. You need to analyze your competitors’ strengths and weaknesses, as well as their prices and products, and find your unique selling proposition (USP) that sets you apart from them.
4. Know your regulations
Olive oil is subject to various regulations and standards in different countries and regions, especially regarding its labeling, packaging, quality, safety, and origin. For example, in the European Union (EU), olive oil must comply with the Regulation (EU) No 29/2012 on marketing standards for olive oil , which defines the categories, characteristics, labeling requirements, and analytical methods for olive oil. In addition, olive oil must also follow the general food law (Regulation (EC) No 178/2002) , which covers aspects such as traceability, hygiene, liability, recall, etc. In other markets, such as the United States (US), China, Japan, etc., there may be different or additional regulations that you need to be aware of and comply with. You need to consult with the relevant authorities or experts before exporting your olive oil to avoid any legal issues or penalties.
5. Know your customers
Olive oil is not only a commodity but also a lifestyle product that reflects the culture and values of its consumers. Therefore, you need to understand your customers’ preferences, expectations, motivations, behaviors, and feedback regarding your product. You need to establish a good relationship with them by providing excellent customer service, offering competitive prices, delivering on time, ensuring quality control, providing after-sales support, etc. You also need to communicate with them effectively by using various channels such as websites, social media platforms.
Olive Oil Exporter: A Growing Industry
Olive oil is one of the most popular and versatile vegetable oils in the world. It is used for cooking, salad dressing, cosmetics, soap making, and more. Olive oil is also valued for its health benefits, as it contains monounsaturated fatty acids, antioxidants, and anti-inflammatory compounds.
The global demand for olive oil has been increasing steadily in the past decades, especially in emerging markets like China, India, Brazil, and Russia. According to Statista, the export volume of olive oil worldwide was 3.01 million metric tons in 2020/21, and is expected to reach 3.1 million metric tons in 2021/22 . The main exporting countries of olive oil are Spain, Italy, Portugal, Greece, and Tunisia, which together account for over 90% of the world exports .
Spain: The World Leader in Olive Oil Production and Export
Spain is the largest producer and exporter of olive oil in the world. It has a long tradition of olive cultivation and processing, dating back to the Roman times. Spain has over 300 million olive trees, covering more than 2.5 million hectares of land . The main olive varieties grown in Spain are Picual, Hojiblanca, Arbequina, Cornicabra, and Manzanilla.
In 2020/21, Spain produced 1.39 million metric tons of olive oil, which was 23.4% more than the previous year . Spain also exported 1.18 million metric tons of olive oil, which was 46% of the world exports . The main destinations for Spanish olive oil exports were Italy (27%), France (13%), Portugal (11%), United States (10%), and United Kingdom (6%) .
Italy: The Second Largest Producer and Exporter of Olive Oil
Italy is the second largest producer and exporter of olive oil in the world. It has a rich and diverse olive culture, with over 500 different varieties of olives grown across the country . The main olive regions in Italy are Apulia, Calabria, Sicily, Tuscany, Umbria, and Liguria.
In 2020/21, Italy produced 273.5 thousand metric tons of olive oil, which was 25.4% less than the previous year . Italy also exported 535 thousand metric tons of olive oil, which was 21% of the world exports . The main destinations for Italian olive oil exports were United States (30%), Germany (12%), France (11%), Japan (8%), and United Kingdom (7%) .
Portugal: The Third Largest Producer and Exporter of Olive Oil
Portugal is the third largest producer and exporter of olive oil in the world. It has a long history of olive growing and milling, dating back to the Phoenicians and the Greeks. Portugal has over 35 million olive trees, covering more than 350 thousand hectares of land . The main olive varieties grown in Portugal are Galega, Cobrançosa, Cordovil de Serpa, Verdeal Transmontana, and Madural.
In 2020/21, Portugal produced 100 thousand metric tons of olive oil, which was 28.8% less than the previous year . Portugal also exported 251 thousand metric tons of olive oil, which was 10% of the world exports . The main destinations for Portuguese olive oil exports were Spain (44%), Brazil (17%), Italy (9%), France (7%), and Angola (6%) .
References:
http://hera.ugr.es/doi/15058025.pdf
https://www.internationaloliveoil.org/the-world-of-olive-oil/
https://www.statista.com/statistics/620358/olive-oil-export-volume-worldwide-by-country/
https://trendeconomy.com/data/commodity_h2/1509
https://agridata.ec.europa.eu/extensions/DataPortal/olive-oil.html
https://oec.world/en/profile/hs/olive-oil
https://www.oliveoiltimes.com/world/italy
https://www.tridge.com/intelligences/olive-oil/exporters
https://www.oliveoiltimes.com/world/portugal
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