Key factors driving PDO olive oil prices at origin in Spain

Abstract

Spain, the world’s leading producer of extra virgin olive oil (EVOO), has 29 protected designations of origin (PDOs) in this sector in 2021. The objectives of this research are, first, to analyse the differences in the origin value of this product with differentiated quality, based on the geographic area of origin; and, secondly, using panel data methodology, to research how certain variables such as the age of the PDO, the production volume, the orientation of part of the supply towards international markets or the development of oleotourism activities in a territory influences the average price paid to the producer. The results show that age, export to non-EU countries and oleotourism positively affect the product’s value. These findings should be taken into account in the design of possible actions by companies, PDO Regulatory Councils (RCs) and influential institutions in the sector, at European, national and regional levels. This article contributes to the evaluation of EU’s agri-food product quality policy and examines the factors influencing the price at origin of certified products, which condition the sector’s profitability and the future of PDO-certified production.