Spanish olive oil makers mull US funding, rush exports to keep away from tariffs

ANTEQUERA, Spain (Reuters) – Considered one of Spain’s main olive oil producers is pondering an growth into the U.S. in response to the tariff conflict unleashed by Washington, simply as its friends are dashing out exports whereas the majority of recent tariffs are nonetheless on maintain.

Spain produces about 40% of the world’s olive oil and sends about 180,000 metric tons a yr to the US.

“Within the medium to long run, we might should make extra investments in the US, which finally are investments that shall be made there as an alternative of Europe,” mentioned Antonio Luque, the CEO of Dcoop, one of many two companions behind the top-selling U.S. model Pompeian.

He mentioned Dcoop, a cooperative of 75,000 households within the southern area of Andalusia, might develop its nonetheless modest olive plantations in the US, the place Pompeian has two bottling vegetation. Final yr, Dcoop gross sales there totalled 240 million euros ($273 million).

President Donald Trump’s administration has slapped a ten% tariff on imports of most European items, together with olive oil, though it introduced a 90-day pause on Wednesday on increased, 25% “reciprocal” duties.

Luque mentioned the uncertainty round Trump’s commerce insurance policies made it laborious to plan, however that Dcoop nonetheless hoped to develop its U.S. market share, believing {that a} 10% tariff wouldn’t considerably harm gross sales.

The Spanish exporters’ affiliation Asoliva expects the provision of olive oil to surge over the approaching months due to a restoration from an prolonged drought, and says seemingly falls in costs might partially offset the tariffs.

Different producers like Nortoliva, which exports 10% of its manufacturing to the U.S., are accelerating their shipments earlier than the 25% tariff fee kicks in.

“We’re loading new orders to the U.S. as we speak and subsequent week,” mentioned Nortoliva’s basic director, Jordi Guiu. “Our American prospects are rising orders, they need to deliver shipments ahead to keep away from paying the tariff surcharge in 90 days’ time.” ($1 = 0.8802 euros)

(Reporting by Jon Nazca and Corina Pons; Writing by Emma Pinedo, enhancing by Andrei Khalip and Kevin Liffey)