The Dominance of Spanish Producers
The European olive oil market is dominated by a handful of large Spanish producers with worldwide sales networks. These companies sell significantly more olive oil than the Spanish trees actually produce. This causes a structural gap between production and sales, resulting in lost revenue and profits.
The Solution: Tunisian Olive Oil as a Filler
Spanish and Italian traders have found a simple but problematic solution: they import Tunisian olive oil in bulk, blend it with lower-quality oil, and then label the bottle as ‘Spanish’ or ‘Italian’ olive oil.
Tunisian Olive Oil: An Important Economic Pillar
Tunisia reached a record production of over 350,000 tons of olive oil in 2019. More than 300,000 Tunisian families earn their livelihood from it, with 85% on small farms of less than 10 hectares. Olive oil is not only an economic engine but also an important source of foreign currency. In 2020, Tunisia exported extra virgin olive oil worth €700 million, about half of all agricultural exports.
The Problem of Bulk Export
Tunisia exports almost exclusively olive oil in bulk. If the country could sell its oil as a branded product on the European market, the export value could exceed €2 billion. However, this is prevented by restrictions imposed by the European Union.
The EU Quotas and the Role of Spanish Multinationals
The EU once granted Tunisia a quota of 56,700 tons of olive oil that could be exported duty-free to EU countries. Unfortunately, these quotas were bought up by large Spanish multinationals. The Tunisian Office National de l'Huile, which negotiates on behalf of producers, is sidelined by influential intermediaries with political connections and financial power. They export directly to the large Spanish producers and are sometimes even on their payroll.
Tunisia: An Invisible Power in Olive Oil
Tunisia is the world’s second-largest producer of organic extra virgin olive oil after Spain, but this is hardly known in Europe. As the saying goes: ‘out of sight, out of mind.’ This situation will continue as long as powerful Spanish traders hold the reins, possibly with support from European officials.
The Irony of EU Negotiations
Cynically speaking, the EU is negotiating with European traders about olive oil that actually comes from Tunisia, while Tunisian producers have little say.
What Needs to Happen
It is crucial that the quotas on Tunisian olive oil are lifted as soon as possible. Only then can Tunisian farmers export their oil without limits, tax-free, and compete fairly with Spanish and Italian producers.
The Consumer as an Unaware Victim
European consumers, especially of organic olive oil, are often unaware of this situation. As a result, they hardly get to enjoy the outstanding quality of Tunisian olive oil. They too are victims of the greed of large Spanish and Italian middlemen.
Choose Wisely: Support Real Tunisian Quality
If you want to enjoy pure, authentic Tunisian olive oil and support fair trade at the same time, try our carefully selected olive oil directly sourced from Tunisian farmers. That way, you contribute to a better future for the producers and taste the difference in every drop.
