Europe Dominates Olive Oil

WASHINGTON - Jun 13/06 - SNS -- The European Union is the world's leading producer of olive oil accounting for 80% world production and consuming 70% of the world's olive oil, reports the U.S. agricultural attache for the region.

The common market organization (CMO) in olive oil and table olives has been profoundly changed with the partial passage to a system of single payments per holding. Single payments per holding apply to the CMO in olive oil and table olives from the 2005-06 marketing year.

CAP reform of the olive sector is expected to lead to long term reductions as less competitive producers leave the industry. The sector is also expected to restructure and focus efforts on production of high quality bottled products. The sector is also expected to move towards greater self-sufficiency and less dependence on public funding as it becomes more market oriented.

Olive production in the EU is expected to recover from the dip caused by a severe drought in the Iberian Peninsula last year and the natural fluctuations of the olive harvest. Food consumption is expected to follow the increasing trend as Olive oil is regarded as healthful dietary oil because of its high content of monounsaturated fat, mainly oleic acid, and polyphenols.

Subscribers can read the full text of the article by Clicking here