Oliva's Profit Margin Rise: Supermarkets vs. Producers
Oliva's Profit Margins Increase Dramatically
According to a study by Uni Llauradora, the profit margin for supermarkets over olive oil producers has risen by 59% as of July, compared to the previous year. In 2023, this margin was only 16%, but it has now climbed to 75% this year. This surge coincides with the introduction of a 0% VAT on olive oil, effective July 1. The agricultural organization points out that in recent months, olive growers in the Comunitat Valenciana have faced a 7% drop in the prices they receive for their products, exacerbating their financial struggles.
Impact on Olive Oil Producers
- Profit margins for supermarkets have drastically increased.
- Producers are suffering from decreased olive oil prices.
- The reduction of VAT has created significant shifts in the market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.