In March 2011, a truck carrying 54,000 litres of Spanish olive oil departed from Valencia, bound for Italy. Like many legal shipments, it was destined for the Italian bottling industry. This consignment, however, would be seized by Italian police because it was being fraudulently passed off as Italian olive oil.
This incident is far from isolated, and investigations into the illegal oil trade are continuing in both countries. The powerful Italian oil lobby is anxious to defend the integrity of its product and to ensure that this is not adulterated by what have been referred to by some commentators as "inferior" oils from other Mediterranean countries.
But what lies behind the media stories? The existence of a trans-national "agromafia" is well known but in this article, we will consider several far-reaching questions regarding the influence of marketing and the consumer´s perception of what constitutes "quality".
What Is Extra Virgin Olive Oil?
Our investigation will focus on the highest quality olive oil, so, before we proceed, we need to understand exactly what the product is.
The flavoursome golden-green oil, so valued for its culinary properties, is extra virgin olive oil. To qualify as such, it has to fulfill some very stringent criteria. It must be extracted from whole raw olives without using heat or chemicals. It must contain less than 0.8% oleic acid, a quality indication based on the level of free fatty acids (a product of deterioration), and in expert tasting tests and laboratory analysis it must have absolutely no chemical residues or flavour deficits.
Lower grades of oil are produced from the olive residue by mechanical or chemical means and range from virgin oil to lampate and pomace oils which have various industrial uses but are not fit for consumption in their raw state.
Where Does Olive Oil Come From?
Many consumers are surprised to learn where most of the world´s olive oil comes from. Despite the Italian-sounding names of many popular brands of extra virgin olive oil, Spain is by far the biggest global producer. With Andalucia as the major centre of production, Spain has some 300 million olive trees covering 2 million hectares - more than 25% of the world´s olive growing area.
Spain´s current annual production of all grades of olive oil stands at 1,400,000 tons. The Andalucian province of Jaén alone produces 580,000 tons, which, incredibly, is greater than the entire annual Italian olive oil output, which is around 500,000 tons.
It is vital to emphasize that these figures apply to the finished product, as olives are never exported in their raw state for oil extraction elsewhere. From the moment the olive tree is planted, through cultivation, harvesting and extraction, this oil is 100% Spanish. It is what happens to it next that has engendered such controversy in recent years.
What Happens To Spanish Olive Oil?
Olive oil is central to the Spanish diet, but as the country only consumes 550,000 tons annually, where do the other 850,000 tons go? Some is imported directly as pre-packed Spanish oil in containers of less than five litres, but most is sold in bulk to Italy where, theoretically, the only stage it goes through is bottling and labeling before heading to its final national or international destination.
As the world´s major bottler of olive oil, Italy purchases and packs oil from several countries including Greece and Tunisia, but especially Spain. Spanish oil is currently the cheapest and Italy buys it at 1.86 Euros a litre for extra virgin and 1.67 Euros for virgin, then, simply by bottling and labeling it, is able to sell the product at between 2.50-3 Euros per litre.
In essence there is nothing illegal about this procedure. However, since 2009 a European Union Directive requires that the origins of all extra virgin and virgin oils be clearly indicated. In other words, every bottle of Spanish extra virgin olive oil marketed in this way must be labelled "Made in Spain", and consumers should be left in no doubt that it is only "Bottled in Italy".
A Question Of Quality
Many companies are complying with EU regulations by labelling their bottles appropriately. However, clever labelling can still give the impression that Spanish oil is a product of Italy. Another issue is that fraud at both ends of the production-marketing continuum is rife and in some cases involves the mixing of oils from different countries and marketing it as Italian. The Spanish farmers´ union is highlighting this activity and even the Italian newspaper, "la Repubblica", questions the discrepancy between the amounts of oil the country produces and markets.
A worrying trend is the tendency of some international reporting to suggest that Spanish olive oil is of inferior quality, and that Italian oil is being adulterated by "lower grade" oils from Spain, simply because these are cheaper for economic reasons.
In fact, many Spanish extra virgin olive oils are among the best in the world. Spain has a proud culinary tradition and its finest foods are classified by the system known as Denominacion de Origen. To qualify for this appellation, a product needs to meet stringent criteria including the region of production, varieties of the raw product, cultivation systems and methods of manufacture. Among the Spanish extra virgin olive oils distinguished by the Denominacion de Origen are "Priego de Cordoba" and "Sierra Magina".
The following is an interesting anecdote that speaks volumes about the quality and price of Spanish extra virgin. Most of us are not fortunate enough to afford anything other than supermarket brands of extra virgin, and one American consumer trial tested a number of top-of-the-range supermarket brands. In the initial trial, two exclusively Italian oils came top. However, in a follow-up blind tasting, both of these lost to a specialist (non-supermarket) Spanish extra virgin oil which, ironically, was cheaper than its Italian rivals.
Brand Spain - An Image Problem
There is one, overlooked aspect to this story that may give insight into why Spanish olive oil is so cheap, and why Spain has problems in selling this quality product worldwide without involving intermediaries.
Deep-rooted stereotypes can greatly influence our buying habits. For example, an electronic gadget labelled "Made in Japan" signifies technological expertise, while cheeses and wines that are a "Product of France" by implication have to be of superior quality. "Italy" is synonymous with style and quality - it is, after all, the home of Ferrari, Milan fashion and the Slow Food Movement.
"Made in Spain" does not have quite the same impact. The country has long been associated with cheap package holidays and cheap wine, a tragically misleading impression that is hard to shift in the popular imagination. During the country´s long transition from the dark years of dictatorship and autarchy, cut-price products and services undoubtedly helped it to increase its economic power. But in the competitive global environment of the 21st century, this cheap-and-cheerful approach can be an impediment for a western economy.
Beyond stereotypes, Spain is a country of culture, landscape and cuisine to rival any in Europe. Until recently, Ferran Adria´s "El Bullí" restaurant in Catalonia was voted best in the world by critics. Perhaps the fragmented and disorganized Spanish olive oil industry needs to cast aside its inferiority complex, learn from this and other Iberian success stories, and market its superior product directly to the world.
Ultimately, the questions remains as to what extent responsible consumers worldwide should be aware of where the products they buy originate and, in the light of this knowledge, alter their buying habits accordingly.
References and Acknowledgements
Tom Baker: Italian Police Sieze Spanish Olive Oil: March 13 2011: www.oliveoiltimes.com
Julie Butler: More Claims of "Made in Italy" Labelling Lies: December 30, 2011: www.oliveoiltimes.com
Cook´s Illustrated: Supermarket Extra Virgin Olive Oils July 1, 2008: www.cooksillustrated.com
Ideal.es: El fraude del aceite "made in Italy" de Jaén: 29/12/11: www.ideal.es
Manuel Piedrahita: All About Olive Oil Edara Ediciones; Córdoba: ISBN 84 95332 25 6
With thanks to the olive harvesters of Nivar, Granada.
Peter Ashby - Peter Ashby lives near Granada in southern Spain, is an expert on natural history, and a dedicated traveller, writer and hispanist.
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