Table olive chaos it has been inevitable. Like other foods, it has experienced a considerable price increase. The costs to be borne by companies have become more expensive. There are multiple causes that explain this increase and that, inevitably, it has an impact on customers. The current resource crisis in which we find ourselves has raised the price of the main raw materials, in this case: plastic, cardboard, glass and lids. To this we add the increase in the price of the Energy and gas, also essential in the sector. If you want to know more ... Keep reading!
Table olive chaos
We are going to start by providing some information that clarifies the situation. The price of plastics has increased by 80% and, the cardboard and cans in a 50%. In addition to the rest of the costs that we have discussed previously. We find ourselves in a situation where find containers safe and reliable has become a great challenge. Deliveries are delayed and orders do not arrive on time. Total chaos. Because, as we already know, the transportation crisis It is no wonder and affects all sectors equally:
It is evident from the exponential increase in e-commerce, that at certain times the commercial demand for containerized spaces is higher than the supply. Due to this phenomenon, before this same summer of 2021, bringing a container from China to Europe could cost in the order of 1.000 euros on average (depending on the origin and destination). During the month of August they came to pay 13.000 euros. The Country Economy.
Maritime transport moves more than 80% of everything we consume and, therefore, its price directly influences the final public sale price. As well as the cost of raw materials and energy. Once this question is understood, we must understand that Spain exports 70% of the production of table olives to other countries. In a globalized trade it is essential to ensure efficient and viable transport, however, we are too dependent on maritime transport. This has been a relevant factor in the table olive chaos.
Slight sales growth in 2021
However, although the price increases, table olives have experienced a slight growth in sales in 2021. Between January and August 2021 sales have increased by 1,2% compared to last year's period. However, we must bear in mind that the latter was marked by the pandemic. Exports grew in countries of the European Union, Russia, Baltic States, Central and South America. On the contrary, they decreased by United States and the Middle East.
United States, main market
The decline in sales in North America is a negative point for the table olive chaos. Basically, because the American country is the main market of table olives. The decline was more marked than the rise, a 2,6% compared to the previous period. The secretary general and spokesperson of the Spanish Association of Exporters and Industrialists of Table Olives (Asemesa), Antonio of Mora, states the following:
It seems that the trend is one of recovery once the tariffs on green olives disappeared, which was affected by the aeronautical conflict and which represents 60% of olive sales to the US.
The spokesman also assures that they are awaiting news of the conversations they held with the new US administration to achieve a solution. However, he believes that the trade dispute will not be resolved short term. In the same way, he affirms that, despite the chaos of table olives, he trusts this product. The reason is simple. It is a very versatile food that you will rarely miss with a beer. What's more, blackberry reports that the consumption of table olives grew in 2020 because of the confinement.
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If you are a lover of olives, be patient. Until the current situation regarding the main raw materials and world transport is normalized, we will not see improvements in prices. But, neither in the table olives nor in the majority of products in the basket. And you, What are your favorite olives?
