How Italian Companies Profit from Exports of Greek Olive Oil

The export of the world renowned Greek olive oil is one example of how the country’s productive potential is wasted.

According to a report in Greek daily Kathimerini, Greece exports in bulk, tons of olive oil at half price of what Greek consumers pay in supermarkets.

Italian companies buy it, standardize and package it, and sell it in foreign markets, including Greece, at double the price.

Kathimerini says that in the first half of 2017, Greece exported 50,386 tons of olive oil, worth a total value of 214.9 million euros.

In other words, it exported olive oil at an average price of 4.2 euros / kg, while the cheapest brand in a Greek supermarket is sold at 8 to 8.50 euros / liter, i.e. about twice the price (1 liter of oil weighs 915 g).

Greek exports have been on the rise over the last few years, however, a significant amount of these exports are of low value because they are non-standardized products and raw materials, says the paper.

Due to the lack of investment in standardization, Greece is forced to import many finished products for the manufacture of which basic raw materials from Greece are used.