Dcoop Announces That It Will Raise The Price Of Its Olive Oil And Olives

The Dcoop Group, one of the large agri-food cooperatives in Spain and the world’s largest oleic producer and of table olives, with a turnover of 1,000 million euros and 75,000 farmers and ranchers grouped in 200 cooperatives, has said that, given the current situation Increasing prices, both in energy, as in transport and raw materials, will raise the prices of its products , among which are oil, table olives, wine, goat’s milk or nuts .

Dcoop thus joins two major players in the food industry, Ebro Foods, a manufacturer of well-known brands such as SOS and the company specialized in meat products Campofrío, which have recently announced increases in their products motivated by the increase in production costs.

In addition, Aecoc, the Association of Manufacturers and Distributors, in the words of its president, Ignacio González, warned of a general drop in food prices if “this perfect storm” of generalized cost increases continued.

Fired freight
The vice president of Dcoop, Ángel Villafranca, referred to ” the freight rates have been multiplied by two and up to ten . Before a container cost 1,400 euros and now it costs 20,000. In products such as oil or wine you cannot pay for a freight 16,000 or 20,000 euros, and those difficulties are coming to us “.

Dcoop reduces its turnover by 10% to 907 million due to the effect of the pandemic
Dcoop reduces its turnover by 10% to 907 million due to the effect of the pandemic

This, Villafranca warns, ” affects both food and associated raw materials, such as the aluminum in wine capsules or the glass in which it is bottled. Villafranca, who remarked that” Spain is a leader in the agri-food industry because we export and those foods you have to get them to the end consumer “.

“If the freight goes up 30% and if the energy goes up, that has to be borne by the consumer”

For his part, the president of Dcoop, Antonio Luque, revealed that now, ” sending a container to the United States can make the product more expensive by 30% only in logistics costs,” so we have no choice but to raise prices “.

Luque recalled that their products have very small margins. “If freight goes up 30% , if energy goes up, if fertilizers go up, if wages have to go up, if all taxes go up , the bottle cap, etc., that has to be borne by the consumer.”

The importance of water
The president of Dcoop considers that one of the key issues for the sector, both oil and agri-food in general, is the improvement of hydraulic infrastructures .

“At Dcoop we want to work in treated water. It is essential if we think about sustainability and the environment.” Luque assures that “the olive grove is slowing down desertification in Andalusia”, and goes further when he emphasizes that ” with water there would be no unemployment in southern Spain “, and that “we would have increases in production in different sectors, such as nuts or oil. They would have more outlets in the market with more competitive production costs. ”

Luque thinks that the European funds or the Perte of 1,000 million euros recently announced by the Minister of Agriculture, Luis Planas, should be allocated to hydraulic infrastructures .

The head of the agri-food cooperative also referred to the issue of oil tastings, which he considers very subjective. “We must work on analytical parameters that guarantee the processes and progress so that Spanish olive oil is confirmed as the highest quality in the world. The tasting panel has led us to trivialize the product and not value it.”

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