Olive oil exports have surged to a remarkable value of 25 million euros for an eight-month period, marking a staggering 665% year-on-year growth during this timeframe.
The previous season witnessed record-breaking olive and olive oil production, attributed to favorable weather conditions and the cultivation of new olive groves.
Conversely, leading olive-producing nations in Europe, namely Italy and Spain, grappled with severe drought, resulting in a sharp decline in olive oil prices across European markets.
This development has proven to be a boon for Albania, as local farmers with olive oil stocks accumulated over the past two to three years redirected their exports toward Italy. The revenue generated from olive oil exports has become a crucial source of funding for olive cultivators and processing facilities.
Market insiders suggest that this season is poised to be equally favorable. While production levels are not expected to match those of the previous year, they remain sufficient to stave off shortages in the domestic market.
The sustainability of this season’s exports hinges on production levels in other European countries. However, this year’s experience has been encouraging, prompting numerous facilities to invest in expanded storage capacities.
Although olive production and processing cycles have expanded in recent years, there remains a notable lack of investment in storage capabilities. Typically, processing facilities favor farmers, charging them tariffs, and lack the stainless-steel tanks necessary for preserving oil under optimal conditions. The absence of professional storage and preservation facilities has led to the sale of olive oil at significantly lower prices compared to other regions.
Foreign trade data reveals that, on average, a liter of olive oil was exported for 355 Albanian lek. Overall, 7,500 tons of oil were exported, amounting to a value of approximately 26 billion Albanian lek during the January-August period in 2023.
Despite the low pricing, the surge in olive oil exports has successfully depleted the stockpiles of farmers who had accumulated supplies for three consecutive years.
