Europe is facing an olive shortage, according to information published by The Guardian. The outlet reports that the cause is climatic conditions. According to their information, businesses are being forced to import olives from South America. Representatives of the International Olive Council are also making discouraging forecasts, stating that this year's harvest will decline by 2.4 million tons — a significant drop compared to last year, falling considerably short of the growing global demand.
As Giorgi Svanidze, founder of the company "Svanidze Olive Oil" and President of the [International] Olive Council, states, Georgia's harvest faces no threat this year, and the volume of the country's yield will be satisfactory. According to him, more than 200 tons of olives will be received from farmers this year.
"We began establishing our plantations in 2009. Since then, the trees have been maturing, and in recent years we have been developing plantations on a larger scale, with the harvest growing year over year. I believe that in the coming years, fruit-bearing will increase and we will reach an even larger harvest. In total, we expect more than 200 tons of harvest from growers and farmers this year. The yield in the orchards is normal," says Giorgi Svanidze.
As for prices, against the backdrop of the crisis in Europe, most olive-producing countries are announcing significant price increases. Giorgi Svanidze states that there will be no significant changes in this regard in Georgia, and prices on the local market will be maintained. According to him, this year the delivery price for olives will be 1.5–2 GEL.
"Last year, the price of olives on the global market rose by 35%. This year, there will likely be a 30–35% increase as well. In Europe and the Mediterranean countries, the olive harvest has come in at reduced volumes compared to 5–10 years ago. Drought and unstable weather are greatly hindering the olive harvest. I believe Georgia and our territories are becoming favorable for cultivating olive crops. We are trying to maintain the same price on the Georgian market so that the price of olives does not rise, though export prices will likely match whatever prices prevail on the global market. This year we will purchase a kilogram of olives for 1.5 GEL, depending on the quality of the olives. The delivery price may be 1.8 GEL. However, the average price will be between 1.5 and 2 GEL," states Giorgi Svanidze.
Giorgi Svanidze says that there is strong interest from investors in Georgia regarding the establishment of olive orchards and the construction of processing plants. According to him, at this stage there is interest from 3–4 countries in launching an olive business in Georgia.
