Morocco’s Olive Oil Boom Sparks Price Plunge and Industry Concerns

Olive oil prices this year are experiencing a sharp drop compared to the previous season, due to the abundance of local production and the multiplicity of supply sources at the international level, explains a member of the office of the Moroccan Interprofessional Federation of Olive to the Al3omk website. He specified that the prices, which had reached around 120 dirhams per liter last year, have currently dropped to around 50 dirhams, and there are even some who offer prices ranging between 30 and 35 dirhams.

According to the official, the logic of supply and demand is the main regulator of the market. However, the major professionals claim that the market does not allow for a stable price to be set for the product. According to the professional’s explanations, international competition plays an important role, as there is abundant production in countries such as Spain, Tunisia and Turkey, which puts even more pressure on the Moroccan market. Any external demand, particularly from markets such as the United States, could relatively raise prices, but if consumption remains oriented solely towards the domestic market, prices are expected to fall further, he stressed.

According to a member of the National Federation of Olive Producers Interpolive, the current season promises an increase in olive production compared to previous years, thanks to the rainfall that had a positive effect on the health of the olive tree. The agricultural season this year should record a production doubled compared to previous seasons, despite the climatic challenges related to the scarcity of rainfall and the phenomenon of global warming, he is convinced, estimating that these particular conditions did not prevent obtaining positive results in terms of quality and quantity of olives.

The latter adds: the abundance of the harvest will be directly reflected in the prices, as it is expected that olive oil will be within reach of the Moroccan consumer, at a time when farmers are awaiting a successful agricultural season contributing to the support of the local economy and the strengthening of the place of this strategic sector.

But the lack of sufficient demand to absorb the surplus supply is worrying the professionals in the sector.