Deoleo says a major industry shift is well underway
On August 27, 2024, Izmir, Turkey’s Menemen Plain to protect the sun’s rays to protect water, olive oil and potassium carbonate mixture with the air view of the agricultural workers.
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The world’s largest olive oil manufacturer Spanish Deoleo’s general manager, a buffer harvest and healing market shares show that the industry has been saved from one of the most challenging moments so far.
A significant olive harvest, especially in Spain, helped to recover the confidence in the sector, and led to a significant decrease in both leakage and virgin olive oil prices in supermarkets.
After two consecutive seasons, olive oil results in an extraordinary turbulence period along the value chain.
A perfect storm Climate change Excessive air, high interest rates and solid inflation resulted in a dizzying price rally of oil last year – stunned consumers and industrial veterans.
However, Deoleo CEO, Cristóbal Valdés, said that there has been a “great change” since then.
“One of the most challenging periods in our history – raw material scarcity, high price volatility and decreasing consumption – now leads to a more normalized and promising market view -” CNBC said to CNBC.
Deoleo, the manufacturer of home olive oil brands such as Bertolli and Carbonell, said he expects an environment with raw material prices in the second half of 2025.
Valdés, “Important recovery in olive oil harvest – especially in Spain – already turns into more stable supply conditions, which has a direct impact on prices.” He said.
“We believe that the tendency towards normalization will continue as some volatility continues.”
‘Customer optimistic’
Most of the olive oil supply of the world comes from the world’s leading commodity producers and southern European countries such as Spain, Italy and Greece and the Mediterranean.
Especially Spain is the largest olive oil manufacturer in the European Union and a global reference for prices.
Spain’s Ministry of Agriculture, Fisheries and Food in question The country produced 1.41 million metric tons of olive oil in 2024/2025 crops. Slightly less efficiency to guessA year ago, an increase of approximately 65% of 855,600 metric tones.
On June 21, 2024, a person holds a bottle of olive oil in Barcelona, Catalonia, Spain.
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Deoleo CEO, tampon Spanish harvest causes a 50% decrease in raw material prices, encourages the demand and allows the company to reduce olive oil prices on the shelf.
“Therefore, our perspective is carefully optimistic: We expect a more balanced market where responsible pricing and focus on the value will be the key to maintaining growth and providing long -term category health.” He said.
Deoleo CEO also said more suitable market conditions to double the company’s advertising and promotion investment to 10 million euros ($ 11.63 million).
Speaking to CNBC before the US and the EU, Valdés accepted a 15% tariff rate for most EU goods since August 1, and said that the company aims to increase communication, marketing and consumer participation efforts to ensure that olive oil is a daily staple.
