Prices

Olive oil is a relatively expensive oil compared to other kinds of oil since it needs a special production treatment: olive crop is a long process (olives are produced only after the maturity of the tree; that means after five years). Harvest is still made by hand in most of the regions. Finally, processing needs an advanced technology, particularly in large producing areas(see technology).

A comparison of six consumption oils prices is presented in this graph:

Prices for various edible oils, 2001-2004 (US$ per tonne)

Source: UNCTAD, data from the International Olive Oil Council.

Prices paid to producers are quite unstable, mainly due to the change in the quantities produced from one year to another and the level of stocks. However, it is difficult to assess the price formation mechanism. Refined olive oils are generally less expensive than virgin oils. Refined olive oil from Jaen is an exception. A possible explanation would be an insufficent amount of lampante oil to meet demand of refining industry given the good quality of produced virgin oil and as a result an increase in lampante oil prices.

Price of olive oil paid to producers, 2001 to 2004
(thousand euros per tonne)

Source: UNCTAD, data from the International Olive Oil Council.