12 Apr

SOS Cuetara plans to increase olive oil output, stabilize prices

SOS Cuetara SA said it is modernizing cultivation methods to help stabilize olive oil prices and increase production.

In a statement outlining a new strategic plan, the edible-oil refiner said that some 10,000 new hectares will be planted annually on land that is either bought through investment funds, rented or accessed through agreements with farmers.

The new strategy focuses on planting high-yield olive crops and increasing production ‘with the goal of stabilizing prices,’ it said.

Under the plan, SOS expects to save 0.50 eur per kilogram on olive oil it buys, according to SOS chairman Jesus Salazar.

The trickle-down to the group’s bottom line will be noticeable within two-and-a-half years, he noted.

‘Within 10 years, about 30-35 pct of our needs will come from these crops,’ he said.

The olive oil distributor will carry out the plan with the crops of TODOLIVO, in which SOS has bought a 50 pct stake for some 4.5 mln eur.

TODOLIVO will manage the lands and crops under the plan.

SOS also said it will guarantee buying 100 pct of the production generated under the project.

The plan aims to reduce the volatility in olive oil prices — which have risen higher than 4 eur per litre compared to current levels of some 2.70 eur — seen in the past few years, causing confrontation between SOS and producers.

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