The expensive "crown" of olive oil

Kastrijot Çuedari, together with his wife, Dezdemona, with their 30-year experience in the olive processing sector, for 8 years in the factory set up in the village of Otllak, produce the "extra virgin" oil from the large olives of Berat.

 

Also known in the area as "the father of olive processing", Mr. Çuedari claims that until now, it turns out that the amount of olives produced is higher than the previous year.

 

But the problem is the increase in the cost of production, from the yield of olives, which has almost halved. In addition, for the year 2024, olive growers have increased labor costs, which, together with the decrease in yield, remain the main factors that have influenced the cost increase.

 

"This year, in the area of ​​Berat, the amount of olives produced is higher compared to 2023. But the problem is the drop in yield. Due to the high temperatures, during the months of July-August, the fruit shrinks, while further the weather wet, at the beginning of autumn brought swelling of the grain, negatively affecting the production yield.

 

So far, it turns out that the yield has decreased by 50% compared to years. While the services from growers have increased, due to profitability", he says.

 

At the factory, Mr. Çuedari is collecting oil from farmers at a price of 600-630 ALL per liter, at the same values ​​as last year.

 

Further, towards the distributors of most food goods in Tirana, including the cost, such as transport, VAT 20% of grinding olives, the increased expenses for the payments of factory workers and VAT payments of 20% of the sale, unpackaged oil is traded at a price of 840 per liter.

 

Although production costs have increased, he is reluctant to sell the oil at a higher price than in years, as it risks reducing consumption. But if the weather temperatures will continue to remain high, for them this is seen as a negative factor, which will further affect the yield, but also the price.

 

"We don't know how the weather will continue, but also how the yield of unharvested olives will be. High temperatures in this period are considered negative for production yield. If the weather continues to be warm, it will reduce the yield, therefore increasing the selling price," he asserts.

 

Both growers and processors are facing the additional cost of paying workers. Farmers in the village of Otllak claimed that if last year, an olive picker was paid a maximum of 1,500 to 2,000 Lek/day, this year the maximum payments have reached from 2,500 to 3,000 Lek/day.

 

The increase is up to 34%. The payment of loading-unloading workers and processing department staff in olive oil processing factories last year reached up to 2,000 ALL/day. This year, the payment for them has increased by 50%, reaching 3,000 ALL/day.

Immigration, a growing problem

 

But even though the payments to the harvesters have increased, the olive farmers are still worried, as they are having difficulty finding them, due to immigration. For some, not finding employees and not meeting the expenses for their payments is having a negative impact, leaving the olives on the tree, unharvested.

 

Even the representative of the "Subashi" oil processing and gathering factory in Marikaj, Mrs. Silvana Subashi, raises the concern of the high increase in production costs.

 

From the doubling of payments to the harvesters, the decrease in production yield, the competition of collection points for the export of rifujo oil to Italy, Mrs. Subashi calculates that the cost of producing one liter of oil has reached 940 ALL.

 

Consequently, she says that she will sell the unpackaged oil, including transport costs, taxes, etc., for 1,100 ALL per liter, while the price of labeled olive oil is expected to go up to 1,500 ALL per liter.

 

"The doubling of labor fees is the main factor that made the cost of olive oil production more expensive this year. If last year, harvesters were paid 200 Lek for shaking 1 kg of olives, this year, harvesters were paid 400 Lek, as it is impossible to find employees. The fee for shaking olives, 400 lek per kg, is too high.

 

The other factor that has influenced the increase in production cost is the drastic drop in production yield. If last year, for crops the production yield was from 15 to 17 liters of olive oil, for 1 kv of olives, this year it has reached 10 to 12 liters. The drop in yield is drastic.

 

Due to these main factors, including the costs for olive maintenance and service, the cost of olive oil production is calculated at 940 ALL per liter, i.e. higher than in years.

 

Another factor is the increase in the number of collection points for refujo oil that is exported to Italy.

 

Ms. Subashi predicts that the increase in the sale price of olive oil will fluctuate its consumption at low levels.

 

According to the data of the Ministry of Agriculture, in 2023, 28.3 thousand tons of olive oil were produced. Compared to the previous year, production fell by 3%. The amount of olive oil produced in 2022 turns out to be higher in the last 15 years.