Olive oil and economy

Olive harvest is very related to the climate of the cultivation area, the weather conditions can vary the crop from one year to another and the total harvest can be from 300.000 to 900.000 tons. It can explain the market behavior of olive oil and always influence its final price. There are two types of markets in the olive oil sector: the source market and the final market. In the source market, the olive oil producer and farmers are suppliers meanwhile the oil mills are the buyers. We should make a clear difference because farmers and mills do not always share the same figure. The final market includes consumers and food distribution channels. The source market takes place in bulk when Virgin olive oils are purchased and packed directly by the packing industry. The olive oil industry is mainly located in the Mediterranean area, mainly in Spain. Considering the performance of all the olive trees, 100kg of olives can produce approximately 22 liters of olive oil. A good production depends on the characteristics of the cultivation area: a well cared with optimal land guarantees the maximum productivity and a higher quality. Dry lands are ideal for the olive cultivation. The olive oil trade, together with the table olive one, have increased all around the world since their use and consumption have been spread across the five continents.

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