Spanish Olive Oil Affected by US Ports Strike, No Alternative Routes Available – Reuters

MADRID (Reuters) – Olive oil exporters in Spain, the world’s top producer, have expressed concern that there are no effective alternative routes to the lucrative U.S. market due to a strike at East and Gulf Coast ports in the United States.

Asoliva, the association representing Spanish olive oil producers and exporters, announced that the strike, which began on October 1, will negatively impact exports, although it did not specify the extent of the effect.

In 2022, Spain surpassed Italy to become the largest exporter of olive oil to the United States, with shipments totaling 180,000 metric tons, nearly one-third of the 480,000 tons consumed in the country. Additionally, between January and July of this year, the value of Spanish olive oil exports to the U.S. doubled compared to the previous year, reaching 693 million euros ($765 million) and accounting for 6% of Spain’s overall exports to the U.S. Meanwhile, domestic consumption of bottled oil in Spain has decreased due to rising prices.

“If the strike continues, it’s going to be a problem … we don’t think it’s viable to go through the Panama Canal or send shipments via Argentina or by air,” stated Rafael Pico, director of Asoliva.

The Spanish cooperative Dcoop mentioned that while it explored the option of shipping to less-affected ports, that route did not appear viable. They expressed hope that the strike would soon be resolved, noting they had increased shipments to the U.S. in recent weeks to build up stocks before the strike’s onset.

U.S. consumers have shown a growing preference for Spanish olive oil, despite it being more expensive on average than its Italian equivalent, priced at 8.81 euros per kilogram.

Analysts in the United States warned that perishable products such as fruit, seafood, and coffee may be the first to be affected if the strike continues beyond a week. Non-perishable imports might face less disruption, although congestion at West Coast ports could intensify.