Market dynamics and policy reforms in the EU olive oil industry: An exploratory assessment

Available information indicates that the future competitive scenario for EU olive oil will be shaped by the market dynamics and business strategies, and the ongoing agricultural and trade policy reforms (CAP reform, WTO Doha Round negotiations, regional and bilateral trade agreements). Based on this premise, the purpose of this contribution is to present an overall evaluation of the market change and policy reform processes affecting the EU olive oil sector, pointing out the main strengths, weaknesses, opportunities and threats (SWOT) that can be associated to their present and expected evolution. The analysis is performed with a systemic approach to market and policy changes, under the general hypothesis that these are governed by a series of economic and regulatory factors on which there is little empirical evidence or which still are subject of public debate whose outcomes are not clear. It is also assumed that while some of these factors act on a global level, others may vary across countries and even within countries amongst different players, which means that there is a wide spectrum of possible strategies and courses of action for the future. The information used is gathered through a combination of secondary sources and primary data from consultations with a representative group of key informants in olive oil policy and markets.