Dear Members,

Two months ago, after convening a special meeting to discuss market conditions, the NAOOA issued a statement in which we expressed concern about rising prices and tightening of supply.

Over the course of the past two months, there has been little if any (credible) news that would alleviate those concerns. Compounding the effects of the drought, the extreme temperatures in Europe and even wildfires have further imperiled the harvest especially in non-irrigated areas.  Rising prices in the E.U. have not sufficiently quelled demand, leading to diminished stocks. In the U.S., where cost increases have not yet fully been reflected in retail pricing, demand also remains strong.  And now Turkey, the one major producing country that had a banner 2022/23 production, has announced a ban on bulk olive oil exports until at least November (see below).

Unprecedented times?  Uncharted waters?  In our lifetimes, no doubt. But we should be able to take solace knowing that in the 6,000-year history of the olive tree, those of us who may already be resorting to prayer are not the first to do so:

Though the fig tree does not bud

    and there are no grapes on the vines,

though the olive crop fails

    and the fields produce no food,

though there are no sheep in the pen

    and no cattle in the stalls,

yet I will rejoice in the Lord,

    I will be joyful in God my Savior.

Habukkuk 3:17-18 (written approximately 2,600 years ago))

Nor are we likely to be the last.  But if we have faith in the endurance of the olive tree and trust that things will be better in the future, it is critical that we act now to invest in the education of consumers and foodservice professionals. Faced with rising prices and uncertain supply over the next year or so, they need to fully understand the “value” of olive oil even at high prices. By that I mean all the many ways olive oil is special and superior to other oils–including many reasons about which research shows most consumers and chefs are not aware–such as sustainability.

The need to educate on olive oil values due to market conditions is one reason why the NAOOA Executive Committee is seeking to accelerate the effort to establish a research and promotion order (R&PO). Through a R&PO, an olive oil commodity board would have the funding and ability to spread the good word that when it comes to health benefits, flavor, functionality, variety and sustainability, there simply is no better cooking oil choice than olive oil.

Recently, I circulated a draft R&PO (and a redlined version for those who had reviewed the last draft) for review and comment by NAOOA members before it is shared with non-member stakeholders.  If you haven’t already done so and are interested in the topic, please review the draft, and let me know by email if you have any comments, questions or suggestions, if at all possible by the end of the day on August 7 so I might share your comments at the Executive Committee meeting.  And please be sure to register to attend an NAOOA virtual meeting on the R&PO on August 24th at 11:30 am ET.

Enjoy the rest of your summer!

Best,

Joseph R. Profaci

Executive Director

jrprofaci@naooa.org