Dcoop, Spain's the largest olive oil producer, denounces massive fraud in the sector

Calls are being made on the Spanish authorities to investigate whether companies are blending with pomace or sunflower oil to keep prices down

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Friday, 29 November 2024, 12:04

Trouble is brewing in the olive oil market, one of the products that has risen most in price during the latest period of inflationary pressures, more than tripling in price. Dcoop, the world's largest producer of virgin olive oil with an average production of around 200,000 tonnes, has denounced fraud in the industry sector in Spain, calling on the authorities to open an official enquiry.

"We have been silent for 40 years, but we are not going to allow it any longer. The governing bodies have to do something because so far it is not being controlled," said Dcoop president Antonio Luque on Wednesday. Specifically, he points out that many companies sell a product containing pomace (the ground-up solids of olive and fruit seeds after milling) or sunflower oil as pure olive oil in order to reduce its price.

"We don't have evidence to take it to court, but we do have solid indications and we lack a governing authority, both at national and regional levels, that wants to stop it and put an end to it," he stated.

According to the cooperative's president, in Italy, where these practices have already been detected, the problem is under control and such operations have now been transferred to Spain. As far as prices are concerned, Luque explained that they have already moderated quite a lot, to around 5 euros at source of production. "There will be a price drop, but the biggest one has already taken place."

His forecasts coincide with those of the rest of the industry sector, which is confident that this year's better harvest will open the door to this moderation in prices. This is also the opinion of Gonzalo Guillén, CEO of Acesur, who a few months ago, during the annual Aecoc conference, pointed to prices starting to fall "from November or December onwards, which are the peak production months", reaching a low in April or May next year, if the weather is favourable.

As Acesur, owner of brands such as Coosur and La Española, explained at the time, the question is where that floor will be, ruling out that prices will return to pre-inflationary levels when a litre of oil could even be found at under four euros in supermarkets. "50% of the world's production is here in Spain and, if the farmer sees that it is not raining, he is more reluctant to sell and release oil," the CEO explained.

In other words, everything depends on the weather, to which is added a serious stock supply problem that will prevent us from returning to those cheaper price levels. "We are starting from the lowest stock ever on record; in Italy they have enough oil for two weeks and in Spain for a month... we have just enough to fill the gap", warned Guillén.

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