Olive Oil

Olive oil is derived from the fruit of the olive tree, which originated in the Mediterranean area. Olives designated for oil are picked before ripening in the fall and is usually done by hand. The olives are then weighed and washed in cold water. The olives, along with their oil-rich pits, are then crushed and kneaded until a homogeneous paste is formed. The paste is spread by hand onto metal plates, which are then stacked and pressed hydraulically to yield a liquid. The liquid is then centrifuged to separate the oil. It takes 1,300 to 2,000 olives to produce 1 quart of olive oil. The best olive oil is still produced from the first pressing, which is usually performed within 24 to 72 hours after harvest and is called extra virgin olive oil.

Supply – World production of olive oil (pressed oil) in 2002/3 fell –11.2% to 2.471 million metric tons from the record-high production level of 2.784 million metric tons in 2001/2. The world’s largest producers of olive oil are Spain (with 36% of world production), Italy (22%), Greece (15%), Turkey (8%), and Syria (7%). Production levels in various countries are highly volatile from year-to-year depending on various weather and crop conditions.

Demand – World consumption of olive oil in 2002/3 rose +1.8% to 2.805 million metric tons. The US is the world’s largest consumer of olive oil with 7.9% of world consumption in 2002/3. US consumption of olive oil is on an upward trend, reaching a record 220,300 metric tons in 2002-03, up from 211,500 metric tons in 2001/2 and double that seen a decade earlier.

Trade – World olive oil imports in 2002/3 fell –0.1% to 491,400 metric tons. The US was the world’s largest importer in 2002/3 with 220,200 metric tons, representing 45% of world imports. The world’s largest exporters are Italy (with 36% of world exports), Spain (21%), and Turkey (16%).