The application of a tariff on u.s. 25% since mid-October on the oils Spanish packaged along with the, to date, little response of Brussels to the storage of surpluses to lighten the market, have placed the sector on the ropes after the collapse of the stock price. In addition, the low prices for the olive also makes it profitable collection in groves of dry, with low performance. If this were not enough, the sector fears that the united states Administration to increase tariffs on oils that are packaged and apply new ones that are sold in bulk.
A few weeks of the end of the bulk of the campaign olive, cooperatives still have a lot of surplus oil of the above. The lack of storage capacity does not simplify nor things, to be forced to sell at low prices to make room.
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The decision of Donald Trump, affects some 60,000 tonnes of packaging out of the 120,000 that Spain exported to the united STATES. That volume would add more than 70,000 tonnes that arrived via the Italian companies —and packaged in this country— and to other third parties, which, according to estimates by the sector, would affect about 150,000 tons. The direct impact has already been reflected in the market: industry exports in December fell to only about 70,000 tons, compared to over 85,000 in November and the 106.000 October. In turn, the industries have been forced to make imports record high of 20,000 tonnes for export to the united STATES oil packaged duty-free.
media industry believes that, if this situation is prolonged, the companies would be forced to offshore in other countries part of the purchases and the packaging plants. In principle, the group Acesur, with brands such as Coosur and La Española, although it has plant in Syria, it has opted for purchasing oil in countries such as Portugal, Greece and north Africa and packaged in Spain. Borges has a plant in Tunisia and packaged in that country. Dcoop, a partner of the american company Pompeian will send it as bulk to packaged in the united STATES. For its part, the Portuguese Sovena, supplier of Mercadona, with plant in Spain, has the best position to count on a center for packaging in Portugal its oil Portuguese and another in the united STATES. In the case of Deoleo, with a share of the low in the north american country and in a financial situation complicated, their spokespersons say, to export from Italy, Portugal and Greece.
Brussels has also contributed to solve the crisis caused by Washington. The EU opted for the private storage aid community to ease the markets and to improve pricing. The European Commission has promised to act with the withdrawal of more than 150,000 tons. To date, however, with two tenders, has been given the green light to store just a little more than 21,000.
Risk of collapse
Agustin Rodriguez, olive-studded of the organization andalusian Professionals of the Agriculture and Livestock and president of the Association of Irrigators in Andalusia, fear a collapse if there is a spring with rain and the possibility of a great harvest. According to the data handled, there are cooperatives that have a 30% of its storage capacity occupied by old oil and can't receive all the new. Rodriguez understands that the output passes through a bid organised and the search for more markets for a quality product by modifying the strategy of the interprofessional. Antonio Luque, responsible of Dcoop, first co-op sector on a global scale, points to the need for the sector to be more organized and prepare to have more storage capacity for when the production is two million tonnes.
The margin of the tariff measures of the Administration Trump and the alleged marginalization of community to the country which is the first producer in the world, the problems in the oil also highlight the need for greater organization of supply in the hands basically of the cooperative and in which only five major groups control more than half a million tons.Updated Date: 20 January 2020, 04:00