In the wake of a recent strike in U.S. East Coast and Gulf Coast ports, olive oil exporters from Spain, the largest producer in the world, warned that there were no viable alternatives to reach the lucrative U.S. market.

Asoliva, the Spanish association of olive oil producers and exporters, said that the strike which began on October 1 would have an impact on exports without quantifying its impact.

Why it is important

According to Asoliva, Spain was the top exporter of olive oils to the United States in the past year. It overtook Italy, as shipments reached 180,00 metric tons or almost a third the 480,000 tons of oil consumed in the country.

Official Spanish data shows that the value of Spanish olive oil exported to the U.S. doubled between January and July compared to a year earlier, to 693 millions euros ($765million), accounting for 6% Spain's total imports into this country. In Spain, the consumption of bottled olive oil has declined due to higher prices.

KEY QUOTES

Rafael Pico, Asoliva's director, said: "If the strike continues it will be a big problem. We don't believe it is viable to travel through the Panama Canal, Argentina or by air."

Spanish cooperative Dcoop said that they had considered shipping to ports that were less affected, but this didn't appear to be an alternative.

It said that it hoped the strike would be called off as soon as possible, and added that it had increased its shipments to the United States over the past few weeks to stock up ahead of the strike.

CONTEXT

Spanish olive oil is being purchased by Americans in greater quantities, despite the fact that it costs more than Italian olive oil at 8.81 euros per kilogramme.

Analysts in the United States have warned that after a strike week, perishable goods such as coffee, fruit and seafood will be affected first. Imports that are not perishable should be less affected by the strike, but congestion in West Coast ports may worsen.

(source: Reuters)