Spain has significant groups of olive, being a major olive power. Agrosevilla, which consists of 12 cooperatives and more than 4,500 farmers, is one of the biggest. It is also an unusual corporation, with a processing capacity of over 40 million kilos per year, a total turnover of more than 181 million euros, and practically any sales occurring in Spain.

According to Julio Roda, managing director, “We produce more than 60,000 harvest days annually and export to more than 72 countries worldwide.” “We export 95%, and we are the first group to export Spanish table olives.” Agrosevilla was established in 1977 and has three reference markets: the United States, Italy, Saudi Arabia and other Arab nations.

Since sales in Europe are highly concentrated and difficult to grow, they believe that Asia and Australia provide more potential for growth. Commercial concerns over the past few years have forced it to reevaluate its approach, despite operational income accounting for 13% of sales and net income of over two million.

Since the tariffs were implemented, the black olive category has decreased by 80% in the US. Due to this, both volume and profitability have decreased, and operating costs have significantly increased. Add “defense spending” as well to help the US Department of Commerce understand why you believe tariffs are unfair.

A study of former President Donald Trump’s choice is now starting, five years after the announcement. Unless there is pressure from the EU’s political will, the plaintiff, the US olive processing sector, will move on with their lawsuit. The Spanish government is tasked with handling that pressure.

With Spain currently holding the EU Council Presidency, we have a fantastic opportunity to bring up this problem. The answer, though, is on hold. In July, Brussels declared that it would pursue an “amicable solution” while bringing the US back before the WTO for failing to meet the 35 percent threshold for Spanish black olives.

There are alternative prospects that might be more promising. The members of the cooperative notice an intriguing development in Asia. “South Korea is now the fourth country where our olives are exported. China and Australia are growing more significantly, despite the fact that consumers there are still getting used to the flavor of olives.”

The pandemic and the rise in transportation costs have significantly impacted profitability, but Roda thinks that we must make an effort. Brazil has the largest client base in Latin America. Own brands like Coopoliva account for 60% of distribution, with the remaining 40% coming from production for third parties, mostly regional retail chains.

Oil is listed as a residual item in the income statement despite recent strong price increases in Spain. And they don’t have any intentions to increase the production of liquid gold. Of course, the manager explains, “There is a connection between table olives and oil oil. The price of the olive is impacted by the demand for oil.” He does not, however, believe that the crop is in jeopardy because it is not simple to move to oil production.

“Olive tree cultivation for table olives has a long history. The farmer performs his research and is fully aware of the necessity to transition from conventional dry land farming to intensive irrigation farming in the future.” Regarding formats, Agrosevilla works with 3,500 references, a sizable stock, and uses olives in various preparations. The La Roda facility employs 450 people and processes over 80 million kilograms annually.

In Spain, 550,000 tons of table olives are typically harvested. The management notes that there were 420,000 last year, and it’s questionable whether this season will be better than the previous one. Do they need to adjust to receiving less of something? “Let’s hope not,” Roda murmurs, but he is unapologetically honest about the reality that “Spain has a serious problem with the collection of around 400,000 tons” because it has formidable rivals in Egypt, Morocco, Turkey, and Greece.

Forecasts suggest that the drought situation may get worse, but the farmer is taking steps to make things better. But without a hydrological strategy that redistributes the increasingly scarce water, this won’t be viable. “Some areas will endure losses. You need to have a shared vision that offers a common resolution to a major issue. Solutions are not partisan or transitory fixes. It’s a serious structural issue that calls for agreement and a long-term strategy.

Given the significant variations among cooperatives, they advocate for some consolidation. He claims that they provide them with a “long-term future vision for the olive grove.” And that is made possible by having access to these 72 exporting nations. However, they also want to refocus their Spanish sales efforts. They are called to grow production capacity by 20% with debt at 1.5x Ebitda, which is “decent and long-term.”