What is the future of the olive oil industry in its traditional strongholds? | economy

Deep in the hills of southern Spain, the historic cradle of global olive oil production, a trade battle is escalating over the future of this industry, worth an estimated 14 billion euros ($15.2 billion). Here, in the Andalusia region, olive trees cover the plains and hills, forming a symbol of the traditional agriculture that this region has been known for centuries.

But in light of climate change and increasing economic challenges, the Financial Times says that traditional farmers are facing intense competition from a new wave of large, intensive farms that rely on agricultural technology and intensive irrigation to increase production and reduce costs.

Climate challenges

The newspaper mentions that in the small village of Montefrio, farmer Manuel Adamos Camino walks on his barren land, inspecting olive trees whose fruits are covered with wrinkles, and he points to one of the fruits that is only about 15 mm in length.

“If it doesn’t rain soon, we won’t get a good harvest,” Adamuz told the Financial Times. “Olive trees suffer from drought and redistribute water between their roots to maintain their survival, but in doing so they sacrifice their fruit.”

This situation reflects a major challenge – according to the newspaper – facing farmers in southern Europe, where recurring droughts due to climate change threaten this industry, which relies heavily on the availability of water.

Last year, a severe drought hit the region, leading to crop failure and a significant decline in olive oil production. Adamoz admits that recurring drought has become the biggest challenge for traditional olive farmers, as they face a severe shortage of water and irrigation resources, making it difficult for them to compete with huge farms that benefit from nearby water sources, such as rivers and dams, according to the newspaper.

“Super” farms

On the other side of this equation, Spain is witnessing a great boom in the establishment of intensive olive farms, or what are known as “super” farms.

According to the Financial Times, these farms rely on planting rows of olive trees in regular lines on flat lands near water sources, which enables them to have regular irrigation and use modern harvesting machines. Thanks to these intensive methods, these farms are able to increase their production at a lower cost compared to traditional farms.

Figures show that the huge “super” farms have grown tremendously over the past two decades, moving from nothing to now occupy about 7% of the total land planted with olives in Spain, and contribute about 11% of the total production.

These farms have a competitive advantage during periods of drought, as they are able to maintain their production thanks to modern irrigation systems, while traditional farmers suffer from a sharp decline in production.

According to statements by Ignacio Silva, president of Deulo, the world’s largest olive oil trading company, “the economic logic behind olive cultivation in traditional mountainous areas is declining, especially due to the problem of water shortages.”

Silva believes that the future lies in these huge farms, which achieve greater profits thanks to their advanced technologies and their ability to adapt to climate change.

Quality versus quantity

Despite the productivity superiority of the huge “super” farms, traditional farmers, such as Manuel Adamoz, insist that the quality of the oil they produce is much better.

Adamuz told the newspaper: “We have become obsessed with quantity at the expense of quality. Yes, the huge farms produce a lot, but the olive oil we get from those farms is not as good as traditional oil.”

He believes that olives grown in the mountains, which suffer from water shortages, produce oil that is richer in antioxidants and healthy compounds such as polyphenols, which give olive oil its distinctive taste and great health benefits.

Studies reviewed by the newspaper indicate that olives that grow in harsh conditions, where they suffer from water shortages, contain higher concentrations of polyphenols, which act as powerful antioxidants and provide many health benefits, such as reducing inflammation and improving heart health, while farms lose weight. Huge plants that depend on regular irrigation greatly benefit from these nutritional properties.

The future of the olive oil industry

In the face of these challenges, traditional farmers in Spain have begun to organize themselves through cooperatives and agricultural councils that defend the quality of their products.

These farmers focus on marketing traditional olive oil as a high-quality product, enhanced by its health benefits and environmental friendliness.

According to José Juan Jiménez López, who works for the Agricultural Council of the Poniente de Granada region, “the only way forward is to focus on quality and excellence.”

He adds that traditional olive oil can be marketed in new markets on the basis that it is a product that does not consume large amounts of water, and contributes to preserving biodiversity and sustaining life in sparsely populated rural areas.

Despite all these efforts, the future of traditional olive farmers remains dependent on ongoing climate change.

“My land brings me enough income to live on, but I cannot make a fortune,” Adamuz says. “Everything depends on the weather. If we get 18 months of good weather, I can guarantee a good season.”