MADRID (Reuters) – Olive oil exporters in Spain, the world’s biggest producer, have warned there are no viable alternative routes to the lucrative U.S. market, amid a strike at U.S. ports on the East Coast and Gulf Coast.
The Spanish Association of Olive Oil Producers and Exporters Asoliva said the strike that started on October 1 would hit exports, without quantifying the impact.
WHY IT’S IMPORTANT
Spain became the largest exporter of olive oil to the United States last year, overtaking Italy with 180,000 tons, or almost a third of the 480,000 tons consumed there, Asoliva said.
Spanish olive oil exports to the US also doubled in value between January and July from a year ago to 693 million euros ($765 million), Spanish official data show, accounting for 6% of total Spanish exports to the US. country. Meanwhile, consumption of bottled oil in Spain has fallen due to rising prices.
KEY QUOTES
“If the strike continues, it will become a problem… we don’t think it is feasible to go through the Panama Canal, Argentina or by air,” said Rafael Pico, director of Asoliva.
Spanish cooperative Dcoop told Reuters it had looked at possible shipments to less affected ports, but that did not appear to be an option.
“We hope the strike will be called off soon,” the report said, adding that it has increased shipments to the United States in recent weeks to build up supplies ahead of the strike.
CONTEXT
American consumers buy more Spanish olive oil, even though it is more expensive than its Italian counterpart at an average of 8.81 euros per kilogram.
Some US analysts have warned that perishable products such as fruit, seafood and coffee will be hit for the first time after a week of strike action. Imports of non-perishable products should be less affected, but congestion at West Coast ports could also worsen.
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