EU olive oil war threatens Spanish dominancy

22 May 2006

BRUSSELS — Spain is opposing a plan to increase the amount of olive oil imported to the European Union by non-member countries.

The plan was suggested after the sharp rise in the price of Spanish olive oil over the past year.

Sweden, the Czech Republic and Britain, which are all large consumers of olive oil, have supported the plan in the hope it will cut the cost of olive oil in the shops.

Spain, which produces around 50 percent of the olive oil bought by EU countries, said in the past week the price of olive oil had actually fallen by 20 percent.

But in the past 12 months, the price of Spain’s so-called ‘green gold’ has risen by 44 percent to EUR 5 per litre, partly because of the affect of last year’s drought on the harvest and price disputes between farmers and producers.

The high price has even made olive oil an attractive prospect for well-organised crime gangs which have targeted plants in the south of the country.

Italy and Cyprus, also major producers of olive oil, have both opposed the EU proposal along with Spain.

[Copyright EFE with Expatica]

Subject: Spanish news