With the third tender, the measure provides for storage aid for 21% of 2019 ending stocks of olive oil in the EU. The Commission welcomes the participation of operators who have submitted realistic offers for a substantial amount of olive oil. To date, the measure amounts to a total budget of EUR 24 mio.The fourth and last tendering procedure will take place from 20 - 25 February 2020.
Background
Due to the excess in supply following harvest 2018/19, prices over the last few months in the Spanish, Greek and Portuguese markets have been particularly low. For instance, the price of Spanish extra virgin olive oil reported mid-January was 33% below the five-year average. Similarly, the price of Greek virgin olive oil was 29% lower than the five-year average.
The exceptionally high stocks at EU level, estimated at 859,000 tonnes for 2018/19 (88% of which in Spain), combined with an average production expected for 2019/20 threatens to keep the EU olive oil market under pressure. The private storage scheme will help alleviate the pressure and contribute to rebalance the market.
The first two tenders respectively in November and December 2019 allowed the storage of 21,000 tonnes of virgin and lampante olive oil for a period of 180 days.
