Amid the ongoing trade war between the United States and Europe, Spain's prominent olive oil producers are considering a strategic expansion into the American market. With Spain accounting for 40% of global olive oil production and exporting approximately 180,000 metric tons to the U.S. annually, companies like Dcoop are contemplating investments in the States to navigate the imposed tariffs.
Dcoop, a cooperative comprising 75,000 families based in Andalusia, is eyeing potential growth opportunities in the U.S. market. Antonio Luque, the CEO of Dcoop, suggests that investments in the U.S. might gain precedence over Europe in the long run. Last year, Dcoop's U.S. sales through its popular brand Pompeian amounted to 240 million euros.
While the Trump administration has levied a 10% tariff on European goods, including olive oil, a 90-day suspension was recently announced on higher reciprocal duties. Despite the uncertainty surrounding trade policies, Dcoop remains optimistic about expanding its market share in the U.S., believing that the current tariffs may not significantly impact sales.
The Spanish olive oil exporters' association, Asoliva, anticipates a surplus in olive oil supply due to recovery from prolonged drought. Potential price reductions could help offset the impact of tariffs. In the meantime, producers like Nortoliva, which exports 10% of its production to the U.S., are hastening shipments to avoid the impending 25% tariff rate.
Jordi Guiu, the general director of Nortoliva, notes an uptick in U.S. orders, with American customers looking to expedite shipments before the tariff increase takes effect. The rush to beat the tariffs reflects a larger trend of adaptation and strategic maneuvering among Spanish olive oil producers as they navigate the complexities of international trade dynamics.