Greece feels pain of olive oil crisis

A worker gathers olives at the olive grove of Christos Aggelis in Kalamata, Greece, November 13, 2021. (REUTERS)
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Updated 15 December 2021
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Greece feels pain of olive oil crisis

Months before the harvest began in November, Greek olive oil farmer Michalis Antonopoulos knew it would not be a good year.

First, his trees did not fully blossom because last winter was not cold and wet enough.

In the spring, temperatures soared to 38 degrees celsius, damaging the flowers that were to grow into olives.

Then the summer brought the worst heatwave in decades, drying up the olives and setting off wildfires that torched hundreds of thousands of trees.

Standing in his grove in Kalamata, Greece’s best-known olive producing region, among trees that are hundreds of years old, Antonopoulos pointed to the results: Half empty branches, with small or shriveled olives, or rotting, attacked by a fruit fly.

“We’re witnessing phenomena and problems that we did not see 20 years ago,” said Antonopoulos, who heads the local olive growers’ cooperative, estimating a 50 percent drop in regional output.

Europe just had its hottest summer on record and scientists say the erratic weather that damaged olive trees is what can be expected from climate change.

Greece is the world’s third biggest producer of olive oil, and the Greek variety is particularly sought-after for its high quality, known as “extra virgin.”

Bottles of Kalamata oil are found in restaurants as far away as Japan but farmers worry that if yields continue to decline, they will not be able to meet demand for what they call “green gold,” jeopardizing the local economy.

“This year has shown us that the tree cannot cope under difficult weather conditions,” Antonopoulos said. “This is a classic example of the environmental change we’re going through.”

Greece produced 275,000 tons of olive oil in 2020-21 and more than half went abroad, making it the EU’s fourth biggest exporter. The EU’s executive commission forecast production will fall to 230,000 tons in 2021-22.

Most of the world’s olive oil comes from the Mediterranean region and in its agricultural outlook for the next decade, the commission anticipated production in the EU would grow, but that climate change could impact annual yields and the quality of oil. For Greece, it forecast a limited decline in output.


EU leaders begin India visit ahead of ‘mother of all deals’ trade pact

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EU leaders begin India visit ahead of ‘mother of all deals’ trade pact

  • Antonio Luis Santos da Costa, Ursula von der Leyen are chief guests at Republic Day function
  • Access to EU market will help mitigate India’s loss of access to US following Trump’s tariffs

New Delhi: Europe’s top leaders have arrived in New Delhi to participate in Republic Day celebrations on Monday, ahead of a key EU-India Summit and the conclusion of a long-sought free trade agreement.

European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen arrived in India over the weekend, invited as chief guests of the 77th Republic Day parade.

They will hold talks on Tuesday with Prime Minister Narendra Modi at the EU-India Summit, where they are expected to announce a comprehensive trade agreement after years of stalled negotiations.

Von der Leyen called it the “mother of all deals” at the World Economic Forum in Davos last week — a reference made earlier by India’s Commerce Minister Piyush Goyal — as it will create a market of 2 billion people.

“The India-EU FTA has been a long time coming as negotiations have been going on between the two for more than a decade. Some of the red lines that prevented the signing of the FTA continue to this date, but it seems that the trade negotiations have found a way around it,” said Anupam Manur, professor of economics at the Takshashila Institution.

“The main contentious issue remains the Indian government’s desire to protect the farmers and dairy producers from competition and the European Union’s strict climate-based rules and taxation. Despite this, both see enormous value in the trade deal.”

India already has free trade agreements with more than a dozen countries, including Australia, the UAE, and Japan.

The pact with the EU would be its third in less than a year, after it signed a multibillion CEPA (comprehensive economic partnership agreement) with the UK in July and another with Oman in December. A week after the Oman deal, New Delhi also concluded negotiations on a free trade agreement with New Zealand, as it races to secure strategic and trade ties with the rest of the world, after US President Donald Trump slapped it with 50 percent tariffs.

The EU is also facing tariff uncertainty. Earlier this month Trump threatened to impose new tariffs on several EU countries unless they supported his efforts to take over Greenland, which is an autonomous region of Denmark.

“The expediting factor in the trade deal is the unilateral and economically irrational trade decisions taken by their biggest trading partner, the United States,” Manur told Arab News.

Being subject to the highest tariff rates, India has been required to sign FTAs with other major economies. Access to the EU market would help mitigate the loss of access to the US.

The EU is India’s largest trading partner in goods, accounting for about $136 billion in the financial year 2024-25.

Before the tariffs, India enjoyed a $45 billion trade surplus with the US, exporting nearly $80 billion. To the EU’s 27 member states, it exports about $75 billion.

“This can be sizably increased after the FTA,” Manur said. “Purely in value terms, this would be the biggest FTA for India, surpassing the successful FTAs with the UK, Australia, Oman and the UAE.”