Spain: California is pressing its Government to impose a tariff on olive oil
Californian companies producing olive oil are pushing their Federal Government to adopt the same measures as it took regarding the Spanish black olives. They do it under the accusation that the Spanish industry sells cheaper thanks to the CAP's aids.
If this tariff were finally approved, it would be a serious blow for the Spanish sector, which, although it commercializes many Italian brands, has managed to gain the leadership in the US market.
In the last year, Spain exported 82,350 tons of olive oil to the US, worth €346 million. Italy has been relegated to second place, with 79,739 tons amounting €341 million.
It seems that what caused the Californian industry concern has been the price war unleashed by Dcoop, the largest Spanish cooperative, a price war later joined by Deoleo, another Spanish group.
In 2015, Dcoop partnered with the Moroccan group Devico for the development of Pompeian, the most sold brand in the US. The liter of this oil is currently selling at $8.49, well below the $12.5 that Deoleo is selling Bertolli and, above all, the $15 to which California Olive Runch, one of the main North American producers, marketers its brands.
For Antonio Luque, Dcoop's President, "it is true that we can sell cheaper because we have lower costs than others and because we have packaging plants in the US". In addition, Luque declares that "we are the only ones who have an FDA quality certificate".
Source: eleconomista.es