Market Challenges in Greek Olive Groves

The Greek olive oil sector faces a number of serious challenges that need to be tackled effectively to upgrade its position and increase the share of value added acquired. Four such inter-related market challenges are identified in this chapter. Firstly is the need for a profound reorganization of the whole sector as a response to the small-scale structure and extreme fragmentation. The strengthening and reorganization of the agricultural cooperatives should be pursued by reducing production costs and enlarging of scale, especially at the processing and distribution stages. Secondly is in establishing marketing standards and beneficial trade rules, the need for a reversal of bulk/branded portions of Greek olive oil in both domestic and export markets, as well as increasing exports and changing the terms of integration of Greek olive oil into global value chains. Thirdly is the formation of a quality strategy for olive oil, having as a focal point the valuation of positive externalities provided by the extensive and semi-extensive Greek cultivation systems, including environmentally friendly practices and preserving local cultivars of olive trees. Finally, several actions are needed to address the lack of coordination and poor governance of the sector as a whole, including the efficient operation of the inter-professional organization and effective collaborative and collective efforts.