ASSITOL: No to undervaluation, it's time to restore the value of olive oil

Enough with inadequate prices—yes to enhancing extra virgin olive oil, a process that involves the entire supply chain, including not only the agricultural component but also large-scale distribution and catering. ASSITOL, the Italian Association of the Oil Industry and a member of Federalimentare and Confindustria, has long warned against the race to the bottom on prices and once again reiterates the importance of a different positioning for olive oil, a cornerstone of the Mediterranean Diet and healthy eating.

“The return to a more balanced production scenario after the difficult harvests of recent years,” comments Anna Cane, President of the Association’s Olive Oil Group, “has brought back selling below cost, which over time has degraded the product’s value.”

Italian legislation allows extra virgin olive oil to be marketed below cost only once a year. However, the reality is very different: for years we have witnessed the indiscriminate use of promotions, with no respect for seasonality and with broad discretion on the part of large retailers. “Olive oil is not a commodity, nor just any condiment,” Anna Cane stresses. “It is an essential product for consumers’ health. In this campaign, which promises growth after years of drought and declining production, it is right to reiterate this in order to raise awareness across the entire sector.”

Due to continuous promotions, consumers have become accustomed to seeking the product at ever-lower prices, without considering the true value of extra virgin olive oil and all its distinctive elements compared with other food products. “A vicious spiral that the supply chain as a whole must put an end to,” says the President of the Olive Oil Group. “The loss of value in the category has also led, over the years, to a progressive decline in operators’ profitability, making it increasingly unattractive to cultivate olive groves, produce oil, and bottle it.”

The price paid by the final consumer, in most cases, risks not covering production costs, thereby harming the entire supply chain. “For this reason, it is time to restore the value of olive oil by asking European and national institutions to ban once and for all sales below cost, while promoting an effective consumer education campaign.” A request that, however, “we do not want to make alone, but together with the shared responsibility of the entire olive oil supply chain, from olive growers to large-scale distribution. The aim is to launch a permanent dialogue, transforming the sector to ensure a sustainable future for extra virgin olive oil by moving from the ‘commodity model’ pursued so far to a ‘value model.’”

In this direction, the role of large-scale distribution and foodservice must be profoundly rethought. “Large-scale distribution and catering,” concludes President Anna Cane, “could become key players in enhancing the category, becoming—each in different ways—the most effective ambassadors of our oil and fostering consumer engagement pathways. In this way, it will be possible to define a positioning for our extra virgin olive oil that respects both the tangible and intangible values of the product.” A bottle of extra virgin olive oil, in fact, “does not contain just a liquid condiment, but many essential elements for our health and our palate; it represents culture, territories, and above all the commitment and skills of all the operators in the supply chain.”