Uruguay Asks to Join the International Olive Council
Uruguay has formally applied to join the International Olive Council, making its move at the Council’s first ever session in Latin America, held in Buenos Aires this month. Chile, Brazil and Peru also sat in as observers. Here is what happened in Buenos Aires, what the new South American producers bring, and why Argentina used the meeting to push for a change to the extra virgin standard.
What happened
The Council of Members met in Buenos Aires from July 2 to 6 for its 18th extraordinary session, at Argentina’s invitation. Argentina, a member for about three years, is so far the only one in Latin America. Government representatives of Brazil, Chile, Peru and Uruguay attended as observers, and according to the Council, Uruguay formally started the process of joining while Chile showed particularly strong interest.
The figures presented explain the interest. Uruguay’s growers’ association told the meeting the country has about 10,000 hectares of olives but still produces only around 500 tons of oil, and expects 15,000 hectares and exports of 10,000 tons by 2020. Chile, speaking through ChileOliva, has about 22,000 hectares, almost all super-intensive and mechanized, produces about 18,000 tons of oil, 97 percent of it extra virgin, and consumes 8,000 tons. Argentine speakers said their mills run about 30 percent over capacity in many regions because so many groves are still young.
| Country | Olive area | Olive oil | IOC status |
|---|---|---|---|
| Argentina | More than 100,000 ha | About 90 percent extra virgin | Member |
| Chile | About 22,000 ha | About 18,000 tons | Observer |
| Uruguay | About 10,000 ha | About 500 tons | Applied to join |
The campesterol fight
Argentina used its role as host to press an old complaint. In his welcome address on July 3, agriculture secretary Lorenzo Basso asked the Council to update its standard so that genuine oil from new producing countries is not left out, naming campesterol specifically. The Council caps this plant sterol at 4.0 percent in extra virgin, arguing that higher levels can signal seed oil. Some Argentine oils exceed the limit naturally because of variety and climate. Mr Basso pointed to the next meeting of the Codex committee on fats and oils, due in February, as the deadline, and said Argentina had chosen to fight from inside the Council rather than against it.
What else was on the table
- A record year. Provisional figures put world production for 2011/12 at a record 3,361,500 tons and consumption at 3,147,000 tons. The United States remains the biggest importer, at about 271,000 tons.
- Promotion spending. A first Council survey found at least €35 million was spent promoting olive oil worldwide in 2010, across 33 countries.
- Market watching. Members discussed a price observatory and a working group to forecast the market and spot disturbances early.
- New campaigns. Promotions are planned in Brazil, China and Japan, with market research proposed in India, Indonesia, Singapore and Switzerland.
New World producers join the Council for the same reason small countries join any standards body: it is easier to change a rule from the inside. The campesterol limit sounds like a technicality, but whoever writes the limits decides whose oil can legally be called extra virgin. That is why the southern hemisphere producers push so hard on it, and why the old producers resist.
For earlier Council business, see 4th extraordinary session of the Council of Members of the International Olive Council. Chile’s rise is covered in Spanish company begins Chile’s largest Olive Oil business, and Argentina’s in Argentina’s olive exports set new record.
Sources
- Olive Oil Times: Uruguay to Join International Olive Council
- Olive Oil Times: Argentina to IOC, Campesterol Level Must Change
- International Olive Council: Market Newsletter No 62, June 2012 (PDF)
- International Olive Council: Market Newsletter No 61, May 2012, focus on Argentina (PDF)