Innovation is key to maintaining Spanish leadership in Olive Oil and Table Olives
The Second International Forum on Olive Oil and Table Olive held on June 14 at the headquarters of the Cajasol Foundation in Seville, threw a very clear message: to remain world leaders in production and marketing, the national oil sector Olive and Table Olives should continue investing in innovation that also is key to know reach new markets and most importantly, differentiate to compete on quality and added value rather than price.
“Commercial decategorisation” is the term coined for the idea of competing for the added values of the brand, rather than costs (which in the case of sectors such as Table Olive presents very complicated due to production from third countries with much lower labor costs). It other words, look for differences that make the product can be sold differently. A future strategy, highlighted by the first speaker, executive vice president of GEA Iberia, Juan Vilar, in his lecture ‘Diagnosis and future strategies for olive growing in the international arena’ which, transferring it to the Olive Oil and Table Olives sectors, he cited as examples of this product differentiation the light olive, the oil powder, or the olive low sodium .
More than 300 representatives of both sectors and institutions involved in its promotion and development, citing in this day had the opportunity to exchange experiences and discuss the current situation, the future and export strategies of Oil Oliva, innovation and international competition in Table Olives sector, and cooperatives. As agreed all participants in the Forum, Olive Oil and Table Olive represent real engines of wealth, given its clearly export character and markedly social, since its activity supports many wages and jobs and is the basis of development economic of many rural populations.
The second edition of this forum was opened by the Deputy Minister of Agriculture, Fisheries and Rural Development of the Government of Andalusia, Ricardo Dominguez; President of Extenda – Andalusian Agency for Foreign Promotion under the Ministry of Economy and Knowledge, Gaspar Llanes; the president of the council of Seville, Fernando Rodriguez; vice president of Cajasol Studies Institute, Guillermo Sierra, replacing the President of the Cajasol Foundation, Antonio Pulido, and the president of the Caja Rural del Sur, Jose Luis Garcia Foundation.
As noted Sierra, this Day, “which are consolidated as authentic reference space” offers the opportunity to chart new strategies as pointed above, from the analysis of the current situation, the big numbers and trends in both sectors and the identification of risks and threats. It is, therefore, in his own words “light spaces of opportunities for both sectors.” And in that sense, Sierra referred to the intention of the Cajasol Foundation to continue organizing this event in future years, “oriented towards new forms of marketing, new products and innovation.”
All institutional representatives agreed to highlight the key role that olive growing plays in the fight against erosion and landscape and olive culture as claims of a tourist activity value. Meanwhile, the Deputy Minister highlighted the fact that in the last year the value of Andalusian exports of olive oil surpassed, with over 1,900 million euros, the exports in the Andalusian sector aeronautic (1,500 million euros) .
Participants at the opening of the Forum.
Also, Ricardo García referred to the internationalization as a point of development, both the olive oil and the olive and the olive grove support measures included in the new Rural Development Plan. “It is the first time that EU funds are committed to innovation through the creation of Task Forces,” said the representative of the Board.
During the round table on Olive Oil, the Territorial Delegate of ICEX Andalusia, José Antonio Vazquez, praised how the olive sector is breaking records export, following the general model of the country happened to be based on “the real estate industry to be based on exports, which currently accounts for 33% of GDP. Which means that one of every three euros that enters our country comes from this activity. ”
Increasing quality has been one of the aspects highlighted by both institutions and entrepreneurs. “Spain is today leader in the production, marketing and export,” summarized President of ASOLIVA, José Pont who nevertheless acknowledges that “although today we sell much more oil than Italy, we do so at a lower price, at least 1 € below , which the olive sector still has some way to go in that direction. ”
For its part, the Director General of ACESUR, Gonzalo Guillén, the olive oil industry’s future looks very optimistic, noting that “has managed to put all the links according to the creation of the Interprofessional Olive Oil”.
The importance of integration as a strategy to give greater dimension and bargaining power in the markets also came up throughout this day. In this regard, the CEO of the cooperative group DCOOP, Rafael Sanchez de Puerta, launched the proposal that the seven large cooperative group leading the production and marketing of olive oil integrate their productions to come together to market and cause “a pull effect “that results in greater business concentration in this sector.
TTPI and Test Panel
One of the main reasons for uncertainty currently facing both sectors that was named repeatedly in this forum is the Transatlantic Trade and Investment (TTIP) treaty, trade agreement between the European Union and the United States that seeks to equate regulations, and was described by President of SOVENA, Antonio Simôes as a “major threat to the Spanish oil”. Also, Simôes has stressed the “need for innovation in the sector, and education in olive oil consumption in emerging countries.”
On this issue, the president of ASOLIVA considers that the TTIP holds opportunities from a macroeconomic point of view, but in micro-economic issues poses threats and uncertainties about the lack of harmonization in regulations affecting the oil sector and preventing market rules are the same for everyone.
In that sense, one of the problems has been addressed is the Tasting Panel. The leaders of major companies agree that causes great legal uncertainty and lack of confidence in producers, packers and marketers. As the President of ASOLIVA said, “entrepreneurs felt despised, humiliated and even embittered by legal uncertainty and lack of protection of the Test Panel”. In this sense, Miguel Gallego, president of MIGASA has exposed the need to establish another system to solve the analysis of oil quality. “After 40 years working for export, we have a problem because the panel is very subjective . “
