Mon. Apr 22nd, 2019

Planas relies on the price increase not to activate the storage of the oil

Planas relies on the price increase not to activate the storage of the oil

The Spanish Minister of Agriculture, Fisheries and Food, Luis Planas, confided on Monday that there is an increase in the price of olive oil that makes it unnecessary to resort to private storage, something that would reflect a very critical situation, he said.

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"We are currently at 2.40 (euros), I think it would be desirable if we never reached the 1.78 threshold," Planas said on his arrival at a Council of Agriculture Ministers, which will discuss the situation of the markets. agricultural products, including olive oil.

The minister hoped that it would not fall below that price level, which would be a sign that "things would be very bad," he said.

According to Planas, the current price of the oil "does not correspond to the current market situation," and insisted that it is confident that it will consolidate "rather upwards in the coming weeks."

He recalled that this year "the harvest has been particularly complex because the initial estimate of production that was around 1,400,000 tons has been greatly exceeded", and will reach almost 1,800,000 tons.

Planas recalled that the last time that private storage was resorted to in the EU was in January 2012, after five consecutive weeks of low prices, and stressed that a procedure is needed that "is not solved in four days" and that implies the acceptance of the European Commission and a majority of countries.

"I think we should focus at this moment on trying to stabilize current prices upwards and there are mechanisms to do so," he said.

Planas said that the forecast of the global decrease of 5% "gives us a framework that should lead to higher prices" and stressed the importance of self-regulation measures from the point of view of producer organizations.

He indicated that Spain supports "that in the case of olive oil, as occurs with wine, a decision may be made at a given time not to market some lower categories to better promote the operation of the market and raise prices" , and the possibility of regular storage by producers.


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