Olive oil exports and challenges by Covid-19

Abstract

This study focuses on the olive oil sector and the effects of Covid-19 in this segment of the Greek agriculture. Olive oil represents one of the most significant segments of the agriculture in Greece and the one with the strongest potential in terms of competitiveness in the domestic and international markets. As such, the analysis of the impact of Covid-19 on this segment on the small and medium olive oil producing farms represents a necessity to investigate the segment of this industry that represents the vast majority in Greece. The study uses in-depth interviews in order to get primary data from farmers who are focused on the cultivation and production of olive oil. The in-depth interviews are focused on analyzing different factors in terms of farming structure, management, challenges and opportunities related to Covid-19 situation and the future intentions and outlook. The results reveal that Covid-19 has caused direct and indirect challenges to the operations of olive oil producers in Greece. The main challenges were related to limited access to workforce, interruption of traditional retailing channels and decline in demand during the application of restrictions. In addition, the lack of significant financial support from the government or EU schemes is shown to have had a significant impact on the ability of farmers to maintain their activities at optimal conditions. On the other hand, the pandemic situation is shown to have presented with significant opportunities that relate primarily with the increased prices post Covid and the increased demand for these products through online retailing. The results also point out to the impact of farm size and family-run management on the overall competitiveness and ability to withstand adverse external conditions.