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 struggle unleashed by Washington, simply as its friends are speeding 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 USA.

“Within the medium to long run, we could need to make extra investments in the USA, which in the end are investments that can be made there as a substitute of Europe,” stated Antonio Luque, the CEO of Dcoop, one of many two companions behind the top-selling U.S. model Pompeian.

He stated Dcoop, a cooperative of 75,000 households within the southern area of Andalusia, may broaden its nonetheless modest olive plantations in the USA, the place Pompeian has two bottling crops. 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 larger, 25% “reciprocal” duties.

Luque stated the uncertainty round Trump’s commerce insurance policies made it arduous to plan, however that Dcoop nonetheless hoped to broaden 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 may 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. right now and subsequent week,” stated Nortoliva’s common director, Jordi Guiu. “Our American clients are rising orders, they wish to carry 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)