China is purchasing record amounts of olive oil and helping to stimulate global production, said a leading olive industry organization on Thursday [20 July 2017]. Chinese purchases of olive oil rose by 17 percent during the first seven months of the 2016-2017 crop year, according to the Madrid-based World Olive Oil Exhibition (WOOE)…Full Article: ECNS.cn July 2017

Key Points

  • In 2016, China produced 5,000 MTs of olive oil (Sichuan Province). A total of 6,000 MTs is expected in 2017.
  • During the 2015 to 2016 season, China imported 40,000 MTs of olive oil. The top supplier was Spain, which accounted for 80% (32,100 MTs) of China’s imports. The next largest suppliers were Italy at 13% (~5,200 MTs) and Greece at 2% (~800 MTs, primarily virgin and extra-virgin olive oil).

ChinaAg Comments

  • In October 2015, Bright Foods completed its 72% purchase in Spain’s Miquel Alimentacio Grup. As a result, in November 2015, Bright Food expected to ship Spanish food products, such as wine and olive oil, to mainland China.
  • In August 2015, Bright Foods stated it would Bacquire a 72% stake in Miquel Alimentacio Grup (Spanish food distributor) at a price earnings ratio of approximately 10 (i.e. market price per share divided by annual EPS).
  • In October 2014, the Shanghai-based Bright Food Group purchased a majority stake in Salov Group, an Italy-based olive oil producer. At the time, it was noted that According to the market research report, Chinese consumers are willing to purchase the more expensive olive oil over conventional oil owing to health reasons. The average price of oil is CNY 98 (USD 16.10) per liter, while conventional oil is CNY 17 (USD 2.79) per liter.
  • In February 2014, Australia stated that China was inspecting its olive oil for DEHP plasticizer and other contaminants.
  • Founded in 2006 and based in Shanghai, Bright Food is the second-largest China-based food manufacturing company measured by 2011 revenues. Bright Food and its subsidiaries make candy, cereal, dairy products, alcohol and canned meats.

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