Extra virgin olive oil: quality, prices and controversy in the supply chain

EVOO: extraction methods, packaging, prices and the climate crisis threatening the 2024 harvest. Discover the data the media won't tell you.

English · Original discussion in Spanish · Published

Extra virgin olive oil: quality, prices and controversy in the supply chain

Extra virgin olive oil (EVOO) remains a hot topic for consumers seeking flavor and health, but also for producers trying to balance quality and profitability. In the last decade, global olive oil production reached 2.46 million tonnes in 2023, with Spain, Italy and the United States consuming a third of all oil produced. 30% of global oils come from palm, 23% from soy and 9% from sunflower, leaving EVOO with just 1% of the vegetable fat market share.

In the sector, extraction has become standardized: "first cold pressing" and maceration temperature (between 25 and 30 °C) are the most common. The difference between a "high-end" EVOO and a "basic" one lies in acidity and the presence of phenolic compounds. A producer from Jaén, Diego Almazán, claims his oil maintains an acidity ten times lower than the permitted limit, and that he filters it to remove impurities that would otherwise accelerate oxidation.

Packaging has also sparked debate. The bag-in-box, with its aluminum bag and spout, is presented as the option that prevents exposure to oxygen and light, although its practical use in the kitchen is still questioned. At the same time, sales of 5 L bottles remain popular among consumers seeking greater capacity without sacrificing quality.

Prices have been a source of controversy. The VAT reduction from 5% to 0% in 2023, trinc by a "double" 5% margin for producers, has been interpreted by some as a maneuver to maintain profitability without lowering prices. Others argue that rising transport and energy costs make an increase of 1 to 2 € per liter inevitable.

Awaiting the 2024 harvest, the climate remains the decisive factor. The lack of rain in the Jaén area and the dependence on rainfed olive groves have led farmers to question the viability of production in the coming years.




1. Extraction methods and quality control

Most producers trinc the same chain: hand harvesting, crushing at 25 °C, pressing, oil separation and filtering. The difference is measured in acidity and phenolic compound content, which determine flavor and oxidative stability. EVOO with acidity below 0.8% and phenolic compounds above 250 mg kg⁻¹ is considered "high-end".

2. Packaging and preservation

Bag-in-box is promoted for its ability to keep oil oxygen-free, but its use in the kitchen requires a spout that not everyone finds practical. The traditional glass bottle remains the favorite of consumers who value aesthetics and the ability to control light exposure. 5 L PET containers have been phased out in favor of more robust glass packaging.

3. Prices and market

The VAT reduction has been cited by producers as an opportunity to lower prices, but intermediaries claim that margins are offset by an increase in sales commission. The general trend is an increase of 1 to 2 € per liter, reflected in retail prices.

4. Outlook for the 2024 harvest

The water deficit in the Jaén area and the dependence on rainfed olive groves have led farmers to anticipate a lower harvest. The lack of rain translates into lower production and therefore higher prices. Producers are evaluating the possibility of increasing support irrigation, but energy costs and water availability remain a problem.




5. Frequently asked questions

**How long does a good EVOO last?**
A well-stored oil (18-22 °C, away from direct light, tightly closed bottle) maintains its quality for 12 to 18 months. Oxidation accelerates with exposure to light and oxygen.

**What makes an unfiltered EVOO different?**
Unfiltered oil retains more phenolic compounds and has a more intense flavor, but its shelf life is shorter and it may present sediment.

**Why do prices rise despite zero VAT?**
Production, transport and energy costs have increased, and intermediaries offset the VAT reduction with higher profit margins.

**What is bag-in-box?**
It is an aluminum container with an inner bag that prevents exposure to oxygen, keeping the oil fresh for longer.




Conclusion

EVOO remains a high-demand product, but its value chain is marked by price pressure, the need to maintain quality and climate uncertainty. Consumers seeking the best value for money should consider acidity, phenolic compounds and packaging, while producers must balance production costs with long-term sustainability.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (1997 replies).

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