Countries start producing EVOO due to the rising demand.

This weekend I had a conversation with a close friend about an important tech company and its problems to grow business in Latin America. Many countries prefer the companies to build up new confection plants in-site than importing finished devices from abroad. The countries have risen the border tariffs (to provoke the companies to invest locally) and these companies can not compete against the other companies that actually do have local confection plants. I was still thinking about the different ways a country has to protect its interests inside their own local market when I saw this link in Olive Crazy . “There is money to be made in olive oil” was the sentence that made me realize I was in front of something that could easily grow inside the USA. USA is the most important market out of the Mediterranean area and is of their own right starting to produce their own products and profit in this way, alike the example with tech companies.

I don’t know how far the Americans can go or how fast they can come to produce the EVOO (I suppose the weather and the soil have something to say about), but the market is going to change for sure and all producers are going to feel it. EVOO producers back in Spain (an world wide due to the fact that the market is global) have another reason to rethink their position and to take a more active role into the distribution. What is going to happen if the biggest consumer actor in the international market starts to auto provide itself? What if the other countries come to the point that don’t need anymore to go abroad for EVOO supply? What happens with the new EVOO producers countries in the Mediterranean?

Whatever it is the answer, we will all need again to compete in price and quality with the rest of producers in the world for consumers to be more interested in going outside than producing it inside. You may think this is crazy but this is actually what is going on these days in Spain, big local distribution companies find more interesting to import EVOO from outside even though Spain is the biggest producer in the world. What is crystal clear is that producers just cannot expect any importer/distributor to come right to the door to take away their stuff. The good news about it are that if countries like USA, China and India are researching new methods to grow olives it is because they see demand inside their market. This history of producing something and not caring about how it is distributed because there is a secure demand is over.