Marketing chain

The present structure of the production and marketing chain is influenced by the importance of olive oil crops in the Mediterranean area. Production is highly fragmented. It is divided in several small properties which grow olives for oil production. This is particularly the case in Spain, Italy, Greece and Portugal. These farms are organized into cooperatives in order to process the olives and obtain oil or sell the olives directly to processing companies.

Refining operations are more concentrated. However, in the case of Spain there were 80 refining companies in 1995 (cooperatives included).

The market is very competitive and entry barriers are quite strong.

The following diagram represents Spanish marketing chain in 1995 and a flow of an equivalent of 100 tonnes of oil.

Source: Olivae.