THE UNILEVER OLIVE OIL WORLD

Transcription

1 THE UNILEVER OLIVE OIL WORLD

2 Olive Oil Value Chain Economic Values Agriculture Milling Selection & Blending Manufacturing & Distribution Emotional and Service Values The industry role Brand Personality Innovation & Communication

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4 Bertolli competitiveness is based on managing the integrated value chain To support local market and exports, demand forecast, buying, blending, planning, production and customer service are managed for : Around 92 K tons in about 180 SKUs Delivered to more than 50 countries Shipped in about 2300 trans-ocean containers and 850 trucks to NE Management of the olive oil integrated process is complex and requires a high degree of specialization. Retention and training of key specialists is essential for the long term success of the business.

5 Characteristics of the Olive Oil Market The Olive Oil (O.O.) market is not a classical open market. It is a market without official and universally acknowledged benchmark (ex. Chicago): there are only local and low-representative bulletins. Price is based on commodity value plus quality values (taste, chemical specifications, stability, etc.). It is a physical market without futures : it is possible to negotiate only physical oil and not futures. The buying activity covers the entire purchase cycle: buying lot, payment conditions, quality, logistics. Absence, in the raw material trading, of big and international traders. Nearly 100% of the Olive Oil production comes from the Mediterranean area. In all the producing countries we have only one crop / year, so the consequences of a positive or negative crop persist for 12 months or more.

6 Olive Oil Production trend 000 tons Key Countries Crop 2001/02 Crop 2002/03 Crop 2003/04 Crop 2004/05 Crop 2005/06 est crop 06/07 Spain Italy Greece Tunisia

7 Olive Oil We are amongst the biggest buyers in the world. Adding up Italy, Greece, Portugal, last year UL bought: TOTAL 79 K EV 63 K Lamp 142 K tons = 6 % of World Production

8 3 Different Products From First Pressing EXTRA VIRGIN ac. < 0.8 LAMPANTE POMACE REFINING PROCESS (residues of pulp and seed) EXTRACTION (with solvent) VIRGIN Ac CRUDE POMACE OIL + REFINED OLIVE OIL + VIRGIN REFINING PROCESS REFINED POMACE OIL + VIRGIN CONSUMPTION OLIVE OIL CONSUMPTION POMACE OLIVE OIL CONSUMPTION

9 Factors affecting quality Olive cultivar Climate Agronomic techniques Ripening of fruit Harvesting Transport conditions Storage conditions of fruit Extraction system Process conditions Storage conditions of oil Quality of olive fruit

10 Manufacturing sites in Europe Production sites Total volume INVERUNO 122 PIRAEUS 54 ABRANTES 37

11 OLIVE OIL PRODUCTION

12 Olive Growing Olive native to the Middle East (Syria and Palestina) Spread to the Mediterranean basic some 5000 years ago Among the oldest known cultivated trees in the world The olive culture was spread by the Greeks and the Romans. The olive production is an integral part of economic and social activities ( tree of life ) Olive oil is a fruit oil and not a vegetable oil

13 Olive Oil Production World production (average) : Tonnes EU production (average) : Tonnes EU consumption : Tonnes EU Nr. of holdings : 2 Million EU Nr. of hectares : 6 Million EU Nr. of olive trees : 677 Million

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18 Intensive versus low input traditional plantations Intensive plantations have (potential) negative environmental impacts: Soil erosion / desertification Soil, nutrient and pesticide run-off Degradation of habitats and landscapes Exploitation of scarce water resources

19 Intensive versus low input traditional plantations Low input traditional plantations are the least viable in economic terms: Most vulnerable to abandonment Highest natural value (biodiversity and landscape) Most positive environmental effects: a rich flora and fauna (bird species) Problems with social capital and local economy

20 EU Olive Oil Market Organisation EU Olive oil policy was created in 1966 in order to support the sector Budget for olive oil = 2.3 billion Euro annually is EU 1.322,5 per tonne (production aid) for 1.78 million tonnes

21 EU Olive Oil Market Organisation In 2004 the EU-Council decided to change the policy as per November Support will be decoupled from production for 60% (minimum) Member States shall fix olive grove payments for different olive grove categories (max. 5) for 40% (max.) of the budget There is a certain risk of wide-spread disruption of olive tree maintenance, which would lead to degradation of land cover and landscape or have negative social impacts. A part of the support could therefore be linked to the maintenance of olive groves of environmental or social value.

22 Olive Farming in Europe: Towards Sustainable Production Sustainability Assessments are needed for the intensive and the extensive production methods. The implementation of the EU olive-oil measures offer a number of opportunities in the individual Member-States. The reform of the CMO is an important step in the right direction. Pilot projects in Spain, Italy and Greece could trigger cooperation between the stake-holders involved. Inter-professional collaboration with the partners in the supply chain has to be developed from scratch.

23 Project Olivero EU Research Project : The Future of Olive Plantation systems on Sloping and Mountainous Land; scenarios for production and natural resource conservation. Partners: - Wageningen University, Department of Env. Sciences and Soil Erosion - Instituto de Agricultura Sostenible Cordoba, Spain - NAGREF ISPOT - Chania, Greece - IFAPA CIFA - Granada, Spain - Agricultural University of Athens - University of Basilicata - University of Lisbon

24 NEXT STEPS Meeting in Cordoba: Identification of projects for both intensive and extensive olive growing for olive oil. GAP-guidelines : work in partnership with experts and stakeholders We value the work of: The Sustainability Institute in Cordoba IFAPA/CIFA Granada Other Olivero partners