Growing supply from Spain, the expansion of private labels, and mafialinked fraud have made the Italian authentic olive oil industry under pressure, raising concerns among both producers and consumers. But experts say the authenticity of olive oil is more resilient than ever and will be a key driver to unlock growth in the premium food industry.
ITALY THE LARGEST SUPPLIER TO US – Italy is the largest supplier of olive oil to the United States, with a market share of 42.8% and exports rising 16.5% in the first 11 months of 2015 from the previous year, according to figures by the US Department of Commerce elaborated by the Italian Trade Agency-Ice in New York. As for the extra virgin olive (evo) oil segment, its Us total imports are forecast to outpace non-evo oil in 2015-2024, growing respectively by an average annual 2.62% and 1%, according to Un Comtrade-Itc data.
THE CHALLENGE OF COUNTERFEITING – However, the threat posed by the so-called “agro-mafia” is not new and the quality of made in Italy olive oil has been doubted as well. But the intense investigative activity in Italy proves the problem is dealt with seriously, trade experts and industry representatives said. “The idea that Italian olive oil is generally affected by problems is wrong. The large majority of Italian extra virgin olive oil is done according to law, is processed in a very correct and professional way by big industries,” said Maurizio Forte, Us trade commissioner and executive director at the Italian Trade Agency.
THE HIGHEST STANDARDS FOR QUALITY – The vast majority of olive oil exported from Italy throughout the world meets some the highest standards for quality. “New traceability requirements in the supply chain are reaching some of the highest levels of efficiency today,” said US trade and market analyst Remer Y. Lane. “The communication between importers, distributors and retailers with producers has significantly improved and the testing procedures are very effective. Yes, diligence is required to assure and protect the well-earned reputation of Italian products, but consumers should also know that every effort is being made to make those guarantees of quality,” he said.
ROOM TO GROWTH FOR ORGANIC OLIVE OIL – Competition from countries such as Spain, higher raw materials costs in Europe as well as the expansion of private labels are also putting pressure on the Italian olive oil industry, experts said. However, the resilient premium segment, led by the extra virgin olive oil, has significant room to growth in the organic sector, as demand for certified genuine food is growing doubledigit, especially in the United States. Evo oil accounted for 4% of total organic Italian food exports, well below wine (7%), pasta (12%) and fruit and vegetables (20%), according to data released by Nomisma.
