'Olive oil faces challenges; the answer lies in innovation, markets and sustainability'

Carlos Seara. Director of Business Development, AgroBank

AgroBank works closely with farmers, cooperatives and agri-food companies. How do you think the olive oil sector in Spain is doing at the moment, after a summer marked by heat waves and the complicated tariff situation with the United States?

The sector is currently experiencing, as on other occasions, a rather complex situation due to uncertainty caused by factors such as adverse weather conditions, lack of sufficient water for irrigation, changes in the production system, fluctuations in international markets... and many other issues that make operators cautious when it comes to investing, especially in the long term and looking ahead to the future.

Olive oil is a product with a long tradition, but also with enormous potential for innovation. What role do digitalisation and new technologies play in the modernisation of the olive oil sector?

As in the entire agri-food sector, digitisation and new technologies are vital to continuing the modernisation of the olive oil sector. But I don't want to forget about Artificial Intelligence (AI), which complements the two previous factors and makes us think that the future may be better or, at least I am sure, that it will be quite different from what we know today. That is why one of our flagship projects is our start-up accelerator, so that the sector can use them in its day-to-day operations: AgroBank Tech Digital Innovation.

Spain is a world leader in olive oil production and export. From your experience, what are the keys to strengthening internationalisation and diversifying markets in such a competitive environment?

The domestic market remains virtually stagnant, despite the fact that, thanks to moderate prices, it has recovered compared to the previous two seasons. However, the only alternative for selling a greater supply of olive oil is the international market. Specifically, we should focus on those countries where this product is most appreciated, because that will allow us to achieve better prices and, in turn, better margins and profits that will enable all operators in the value chain to continue working and investing in further improving their facilities for the future.

Furthermore, health now appears to be an important driver of consumption, and therefore any advances made in this area that can be scientifically proven to society will allow us to give our liquid gold much greater value and, consequently, a higher margin for all links in the chain.

The future of the sector lies in sustainability. What advances do you see in olive growing and the olive oil industry to adapt to climate change and reduce the environmental footprint?

Olive growing and the olive oil industry, like all agricultural sectors today, are becoming increasingly sustainable from an environmental point of view, without losing sight of the contribution that all the links in this chain make to the social and economic sustainability of the territories.

Specifically, we must not forget that olive groves are the crop that generates the most employment during the harvest season and also, in many areas, the one that generates the most economic activity. It is clear that the sector is prepared, because it is also improving every day, and these advances have placed our sector at the top of the world rankings.

AgroBank has established itself as a strategic partner for the agri-food sector. What specific lines of support do you offer the olive oil sector to help it meet its main challenges and take advantage of new opportunities?

AgroBank is currently the institution with the highest lending activity in the Spanish agri-food sector, with the volume of financing it has provided to the sector amounting to more than €19.3 billion as of June, reflecting our commitment.

This is only possible when you provide your customers with financial and non-financial solutions: loans for woody crops with grace periods of up to four years, financing for water efficiency or sustainability-related issues with tailored terms and prices, advice on the CAP, and programmes such as Impulso Agro and Crecemos Juntas for young people and women, where we have representatives from this sector whom we want to help grow their projects. This means that the sector sees us as a provider of solutions for their businesses.