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The strength and weakness of Greek oil in world markets

data_2019-10-23 19:02:12 2019-10-23 19:02:12

The average tourist asked to mention some of the most characteristic associations associated with Greece will certainly mention tasty food, hospitality or picturesque beaches. Among the things listed, the list will most likely include excellent olive oil. This should not come as a surprise, since the one produced in Greece is in the lead in terms of parameters. Every year, the vast majority of the oil pressed here is the one called extra virgin. Greece is also one of the world leaders in terms of production volume.

Olive oil

If it's so good, why is it so bad?

The olive harvest period is a time of unusually intensive and hard work for farmers, for which they should receive appropriate remuneration. Every year, they look with concern at the buying-in prices of oil run by local cooperatives. The rates they offer are rarely satisfactory and satisfying farmers. This should not come as a surprise, since selling a kilo of oil at a price of around 3.5 € at a simultaneous production cost of 5.2 € is a business model far from profitable. For many farms, maintaining traditions and direct payments from the EU budget are the only factors affecting the maintenance of oil production.

This situation has persisted in Greece for decades. Every year, most farmers clench their teeth and sell their excellent oil for a fraction of the price it will get on the retail market with a heartache. The vast majority of profits generated from its sale will be won by a network of intermediaries in its trading. A large part of them will be the largest producers of Italian oil, who buy gigantic amounts of oil from Greece every year. Let the data collected by the Bank of Greece testify how much of the Greek oil enriches products from other countries. Last year, only 27% of the Greek oil exported was one that was spilled on site and had a mark clearly indicating that its place of production was Greece.

olives

A new young wave of olive producers

In the most delicate sense, this model of farmers' functioning on the olive oil market is far from ideal. Continuous existence on the threshold of profitability of production depends largely on various types of subsidies, not only does not allow for development, but also does not provide profits constituting a fair remuneration for work. It should not come as a surprise, then, that the number of oil producers who are looking for their own path as an alternative to the current oil sales pattern is growing.

Some of them create their own brands that operate independently of local cooperatives. Very often, the oil they distribute is a product whose special feature is quality. Frequently, the parameters achieved by such oils predispose them to premium products or health claims.

In the source article published on the politico portal, which inspired us to write this news, the example of Stavros Kolalas who lives on the island of Thassos is quoted. A few years ago, he quit his job as an IT specialist and decided to become a farmer. Thanks to hard work and considerable financial outlays, he created his own olive oil brand Ev Zin. This step allowed him to become independent of the draconian oil buying rates offered by the local cooperative. For years, he has been building his own customer network independent of intermediaries. As he notes, no less important aspect of his business is the option of selling oil using his own online store. The high-quality oil that it produces reaches a price of € 13.5 per 500ml, which is incomparably higher than the purchase price of oil at a local cooperative.

Olive Physis of Crete

Of course, there are many more such examples of the "new wave". For our part, we can mention the well-known Manos Asmarianakis, who has been developing his own brand Physis of Crete for many years in Kritsa. Developing the company, he focuses not only on the production of high-quality oil, but also on offering products typical for this region of Crete. The whole assortment is also trying to supplement with quality cosmetics made on the basis of local olive oil. What a few years ago made his products stand out from the competition were also extremely aesthetic packaging. By expanding his business, he also created a separate brand of high quality CORONA polyphenol oils.

Strength of cooperation

Vasilis Pyrgiotis, an expert in olive oil at Gaia Epicheirein, said in a politico article that one of the major sins that would linger on the Greek oil market is a lack of willingness to cooperate. Most manufacturers and marketers are highly focused on each other. Each of them is, not always rightly, convinced of the uniqueness of their product. Everyone believes that their family, their village has the best oil. The degree of competition and lack of willingness to cooperate is so strong that Vasilis Pyrgiotis, when characterizing Greek oil producers, cites one of the popular local sayings: "I don't care if my neighbor's donkey is dead if my own is still alive."

However, as he also notes, this is slowly changing. As an example, he gives two olive factories near Heraklion, which have been working closely together for some time. One of them focused on pressing the best oil, while the other focused on packaging and distribution. Close cooperation allows them to reduce costs and achieve much better financial results compared to independent operations.

Olive tree in Crete

Olive in the world of politics

Ways to solve the problems associated with the valuation of Greek oil are also emerging at government level. Every now and then the idea of creating large state-owned oil purchase and processing companies comes back. Such a consolidated market of Greek producers would be a counterweight to leading Italian and Spanish companies. Critics of this solution point out, however, that such a solution is focusing on competition through quantity and price, while the basic advantage of Greek oil should be quality.

For now, the basic problem is that despite passing time and changing governments, no solutions have been implemented. The voting power of fragmented small producers and their cooperatives is still too weak compared to concerns that impose rules on the Greek olive oil market. The fact that Greece is losing the fight for European consumers can be easily convinced by going to a local grocery store or supermarket. Greek olive, if of course will be on the shelves there, will be even overwhelmed by the multitude of Italian and Spanish brands, which will be offered at lower prices. Fortunately, we consumers existing in the era of universal access to the Internet can reach far beyond the shelves of our local stores. Using the services of online stores, we can buy Greek oils of the highest quality and good price.

Gosia i Piotrek,  data_2019-10-23 19:02:12 2019-10-23 19:02:12
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Komentarze

 Martyna Zieba
Martyna Zieba
2019-10-23 17:34:26

Robert Braziewicz Natalia Braziewicz

 Robert Braziewicz
Robert Braziewicz
2019-10-23 19:42:05

Martyna Zieba tyle pytań mam co gatunków

1
 Martyna Zieba
Martyna Zieba
2019-10-23 20:02:53

Robert Braziewicz Jedna odpowiedz, sto nowych pytan.

 Pano Vas
Pano Vas
2019-10-24 06:29:38

Martyna Zieba rozumiem

1
 Mariola Dudzinska
Mariola Dudzinska
2019-10-23 17:39:39

Tylko grecka Oliwa jest najlepsza i bardzo zdrowa

2
 Walentyna Swietochowska
Walentyna Swietochowska
2019-10-24 06:15:05

A najlepsza z Krety

1

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Najnowsze komentarze:

W Jeorjopouli montowali parasole kilka dni temu. No jestem ciekawa czy teraz będą demontować.
gość PiotrWie : Nam się podoba - może znowu da się jeździć na Kretę. Miłośników leżaków zapraszamy z powrotem na północne wybrzeże.
Bardzo się cieszę. Mnie to odpowiada, bo nie znoszę głośnej muzyki na plaży i coraz trudniej było znaleźć miejsce bez leżaków. Jak ktoś chce leżaki to zapewne znajdzie odpowiednie miejsce.
W Falasarnie byłam ostatnio jakieś 2-3 lata temu. Leżak na leżaku, głośna muzyka z baru, co najmniej dwa kłady, kursujące tam i z powrotem co kilka minut, generujace niesamowity hałas i smród.... a pamiętam jeszcze czasy, jak można było na tej plaży rozłożyć się z kocykiem w ciszy i spokoju, eh... no cóż może i szkoda miejsc pracy, ale ludzie wszystko potrafią zniszczyć i nie znają umiaru jeśli chodzi o kasę, ... (...)
Bardzo dobrze. Jak ktoś nie chce wypożyczać leżaka, to miejsca musi szukać na drugim końcu wyspy i w najbrzydszej okolicy.
Małe sprostowanie. Określenie "Fałszywe plaże" jest błędne. Chodzi tu o "Niezadeptane plaże" (gr. Απάτητες παραλίες) ;)
To znaczy, że z Falasarny znikną baldachimy do leżenia? Trochę rewolucja.
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