Italy Faces Challenges in Managing Exceptional Olive Oil Production
Similar to Spain and Tunisia, Italy is facing difficulties this year in managing its exceptional olive oil production. Italian farmers, represented by the National Consortium of Italian Olive Growers, have requested government intervention to consider using market regulation mechanisms.
Recent Tensions in the Sector
In recent weeks, significant tensions have emerged in the sector, disrupting its functioning at a critical moment when stakeholders need stability and economic and financial visibility during the peak production period. Professionals are calling for the activation of Article 167a of the European Parliament and Council Regulation. This mechanism provides that, in order to improve and stabilize the functioning of the common market for olive oil, producing member states can establish marketing standards to better regulate supply.
Proposed Solution
Concretely, this measure would allow for the temporary withdrawal from the market of determined volumes of national extra virgin olive oil. Such intervention would aim to prevent imbalances and ensure the fluidity of commercial exchanges, in the interest of both producers and consumers. The central objective remains to protect farmers' incomes from sudden price and market fluctuations. This directly affects Tunisian exporters, as maintaining international prices is valuable for our trade balance and for the entire sector seeking to stabilize its finances. Investors will be further encouraged to invest in the sector.
Need for Increased Storage Capacity
However, it is essential to work on extending storage capacities, as all signs indicate that production will remain high in the coming years. By addressing this issue, Italy and other affected countries can better manage their exceptional olive oil production and ensure a more stable market for all stakeholders involved.
