How much cost to produce extra virgin olive oil in Spain?
In this study, the Ministry of Agriculture distinguishes between three types of olives to set production costs: not machinable rainfed olive grove, rainfed olive machinable and extensive irrigation
The Observatory of Prices and Markets of the Ministry of Agriculture considers that the average cost to produce one kilogram of olive oil in the olive can not be mechanized rainfed, which represents over 70% of the crop in Andalusia and Cordoba, is 2,47 euros. This value, which has been set by the Board of Andalusia after a survey campaign sector in 2010/2011, leaves the price in three of the past four seasons below the threshold of profitability clearly. Except for the current crop, which has exceeded this low production value that is registered, the production costs have been above the quote you have obtained the growers in the markets. Had it not been for the significant support from the Common Agricultural Policy (CAP) economic performance had been ruined in recent crop years.
In their study, the Ministry of Agriculture distinguishes between three types of olives to set production costs: not machinable rainfed olive grove, an investment to get a kilo of oil stood at 2.47 euros rainfed olive machinable, lowering cost to 1.93 euros and extensive irrigation, which requires an investment of 1.59 euros.
In its report, the Board indicated that the main expense in rainfed olive is not machinable labor, which is the practice of pruning the olive grove. To get a kilo of oil are needed € 1.31, representing 53% of all expenses. Children are the chapters of fertilization (0.33 euros), soil management (0.29), phytosanitary treatments (0.25) and harvesting and transport (0,27). Direct costs amount to 2.44 euros, to which we must add 0.03 euros in taxes and overhead. In the latter concept includes road repairs or gullies.