The rise in the price of olive oil is causing concern in the Spanish agri-food sector, particularly in the canning industry. If this price increase continues, Spanish production could be seriously affected.
Spain is a major force in the canning sector, exporting more than half of its production. In addition, the pandemic managed to revitalize domestic trade, exports also grew due to Spain’s better position to supply Europe than Asia in some moments of crisis. This increased foreign trade by 15.7%, surpassing 1 billion euros in revenues in this way for the first time in the history of the sector.
In addition, all this allowed the sector to increase its industrial activity in 2020 in general terms (+2%), according to data from Anfaco-Cecopesca, thus overcoming the impact of the closure of the hotel industry in Spain and abroad, which has forced operators specialized in this channel to seek new avenues of expansion.
Despite the good results achieved in recent years, with the price of olive oil soaring, the canned fish and seafood sector foresees a difficult season. Specifically, the price of oil has risen 85% in the last year and this has forced canneries to raise prices. As a result, consumption has plunged by 10%.
You can see it on supermarket shelves; canned food prices have risen by 15% in the last year. An increase that will be maintained when the canners pass on the increase in oil prices that they have recently paid, three times more expensive than a year ago. Spain produces 300,000 tons of canned fish and seafood per year, 50% of which contains olive oil. Consumption has already fallen by 10% and producers are studying other formulas, such as new forms of presentation or sizes.
Nevertheless, there is a thread of hope. Experts expect that this year’s oil season will not be as poor as previously thought. It is estimated that the figures could close at around 660,000 tons, a little lower than last year, but it is hoped that hopefully the autumn rains can raise the average. In spite of everything, the canning sector is being weighed down by the rise in sunflower oil prices due to the war in Ukraine, which will continue to have a direct impact on the consumer’s pocket.
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