Filippo Berio reports on 2022/23 olive oil harvest

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Mar 02, 2023, 05:00 ET

Lowest yield in 30 years creates industry-wide challenges; Global network, legacy of master blending ensure quality still wins

LYNDHURST, N.J., March 2, 2023 /PRNewswire/ -- Filippo Berio, one of the nation's top-selling olive oil brands, has assessed the 2022/23 olive oil harvest as the most challenging on record, with the lowest crop yields in 30 years. While final yield numbers have yet to be confirmed, Filippo Berio estimates that the global harvest will deliver approximately 20% to 25% less final product to consumers, only about 2.7 million metric tons of product — 400,000 metric tons less than a typical good harvest. While the lackluster results present difficulties, including industry-wide price increases, Filippo Berio has the benefit of sourcing its olives from five of the largest and premier Mediterranean olive-oil producing countries, ensuring greater access to high-quality olives.

"At Filippo Berio, we have a reliable network of producers across Italy, Spain, Greece, Portugal and Tunisia, which means continued access to product that meets our quality standards, despite the crop shortages across Europe," said Dusan Kaljevic, CEO of Filippo Berio USA. "Additionally, there are signs of easing in certain supply chain costs, and our focus on sustainability offers some hope for future harvest seasons."

Recapping a difficult harvest
After a poor flowering in April and May 2022, growers hoped to see potential yields increase with summer rainfall. But Europe, where a majority of the world's olive oil is produced and where the climate is warming at a much faster rate than the global average, instead suffered heatwaves, drought and wildfires. Ill-timed rainfall late in the fall further exacerbated supply issues, as the rains created an environment conducive to olive fruit fly attacks that compromised ripening fruit.

The challenging conditions have led to record-low yields across the Mediterranean region. Spain, for example, which has the longest harvest season and is the largest producer, usually sees a harvest of more than 1.4 million metric tons (and up to 1.8 million in an exceptional year); this year, it is unlikely to exceed 750 thousand metric tons.

"The low yield was expected, based on the conditions we saw developing throughout the year. At Filippo Berio, we took steps early in the harvest period to secure high-quality oils," said Kaljevic. "Nonetheless, the price impact will be significant. With less final product available to the industry, we are anticipating 30%–50% price increases, depending on the type of oil."

Showing some optimism for future harvests
It remains too soon to make predictions for the upcoming 2023/24 olive season. Producers will be monitoring weather conditions during the critical blossoming period in spring, while considering the direction of other costs along the supply chain. "Fortunately, we are starting to see a decrease in pricing for transport — especially ocean freight, as new capacity comes online — and we have reason to hope that packaging material costs will begin to trend downward as well," explained Kaljevic. "However, these decreases will not be enough to mitigate price rises due to the most recent poor harvest."

Kaljevic noted that another positive development to emerge is Filippo Berio's growing network of third-party-certified olive growers for its recently launched Sustainable Select line. Sustainable Select extra virgin olive oils are produced from olives grown using certified integrated farming methods and processed in accordance with rigorous quality control and environmental standards. These oils offer a fully traceable farm-to-bottle experience for consumers, via a QR code that provides information on the bottle's origins, flavor map and other details. Growers for the Sustainable Select line are approved by SGS, a global leader in inspection and certification.

"This year, supply from certified sustainable agriculture is limited, but our ability to certify additional growers shows that quality is still winning," Kaljevic said. "We also have something of an advantage in our global distribution that our buying capacity, financial solidity and extensive networks of relationships with farmers allow us to obtain more supply — though it's still less than we would like."

Filippo Berio's master blenders are specially trained to identify and select the highest quality olive oils from the brand's various producers. Every oil has a distinctive organoleptic profile, and the master blenders combine oils with different characteristics and flavors to create perfect, balanced blends. Because the brand sources from multiple Mediterranean regions, Filippo Berio can compensate for quality and quantity issues and still blend in accordance with its strict standards for ensuring consistency in quality and flavor.

Although the pace and impact of climate change has made commitment to high quality a more challenging prospect in recent years, Filippo Berio has taken a proactive approach to ensuring a reliable supply of oils that meet its stringent standards. It is investing in and integrating various sustainable initiatives, from expanding access to certified growers for its Sustainable Select line to participating in industry research to hone cultivation methods and identify resilient olive varieties. According to Kaljevic, "We cultivate multiple varieties, including ancient and underutilized ones, to uncover productive cultivars that better tolerate climate extremes and exhibit resilience to pathogens." Filippo Berio has helped identify 18 promising cultivars thus far. Additionally, it continues to evaluate other steps along its production chain to identify areas that can be more environmentally friendly; for instance, new and improved olive oil bottles are produced with 50% recycled plastics (rPET).

For more information about Filippo Berio's products and sustainability initiatives, please visit www.filippoberio.com.

About Filippo Berio:
The Filippo Berio brand has been committed to creating high-quality olive oil for more than 155 years. Founder Filippo Berio set forth exceptional standards of olive oil production that are still rigorously followed today, with each bottle sold bearing his signature as a seal of the finest olive oil and the brand's promise of quality. From distinctive olive oils to a selection of specialty pestos, vinegars, balsamics and glazes, all featuring the finest ingredients and high production standards, the Italian brand focuses on creating great-tasting and accessible products to elevate the at-home cooking and eating experience. The brand is currently sold in more than 75 countries. In the United States, Filippo Berio is marketed by Filippo Berio USA, a wholly owned subsidiary of the Salov Group, based in Lucca, Italy. For additional information, please visit www.filippoberio.com.

Filippo Berio Media Contact:
Hannah Castle, 510-590-0195
[email protected]

SOURCE Filippo Berio