Subject: Compensation for olive oil producers affected by crop failure in the European South
The great majority of olive growers (producers of olive oil and edible olives) are facing severe economic problems in the countries of the European South due to widespread olive crop failures. The price of olive oil may have increased in the latest period due to crop failure, but this applies only to a very small percentage of the total number of olive oil producers, while all producers are faced with large increases in the cost of cultivation and costs of harvesting the produce.
For the great majority of producers, the production shortfall, which is estimated at more than 80% of the average volume, leads to impoverishment with an immediate risk that olive production will cease. This is a negative trend with very serious adverse impact on local economies where olive growing is an important pillar of the economy. It should be noted that crop failure has been an ongoing phenomenon in recent years and is not due to the usual two-year crop-bearing cycle of olive trees.
The lost income must therefore be replaced immediately to avoid the negative consequences for the European olive oil producers who are affected by crop failure.
What measures does the Commission intend to take to compensate the producers affected by crop failure?
Submitted:12.12.2023
Answer given by Mr Wojciechowski on behalf of the European Commission (25 January 2024)
Countries of the European South are expected to have a lower olive oil and table olives production in the new marketing year 2023/2024, due to the alternate bearing of olive trees.
For marketing year 2022/2023 Greece for instance attained the highest olive oil production in the last five years, with 350 000 tonnes.
European farmers have access to income support to stabilise their income. This support, increased for farmers with bigger income needs or in sectors encountering difficulties, is paid independently from the actual production or prices.
Additional support to the olive oil and table olives sector hit by severe economic problems or aiming to increase competitiveness can be made available by the national authorities under rural development interventions (e.g. risk management tools such as mutual funds, income stabilisation tool, support for restoring agricultural production potential damaged by natural disasters or support for quality schemes, cooperation, etc.) and sectoral interventions (e.g. investments, advisory services, training, quality schemes, mutual funds, production and harvest insurance, etc.) in accordance with the national Common Agricultural Policy Strategic Plan 2023-2027 as approved by the Commission in accordance with Regulation (EU) 2021/2115 (1).
Compensation might also be possible under the state aid rules (2), (3).
1 ∙ ⸱ Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn
up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013. 2 ∙ ⸱ See Guidelines for state aid in the agricultural and forestry sectors and in rural areas (OJ C 485, 21.12.2022, p. 1) and Commission Regulation (EU) 2022/2472 of 14 December 2022 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (OJ L 327, 21.12.2022, p. 1). 3 ∙ ⸱ https://competition-cases.ec.europa.eu/search