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68 RESUMEN Envasado y comercialización de aceite de oliva y aceite de orujo En este artículo se describen los equipos e instalaciones industriales que utiliza el sector del aceite de oliva para el envasado de los aceites de oliva, los tipos de envases más empleados (plástico, vidrio, metálicos y cartón) y las diferen- tes tecnologías de llenado, taponado, etiquetado y embala- do, así como las tendencias y nuevas tecnologías en función del material de los envases y la demanda de los mercados. Se contemplan también aspectos logísticos como el pa- letizado, el almacenamiento y la expedición del producto ter- minado. El uso de modernas herramientas y sistemas de co- dificación como el EAN 128 permite el seguimiento del producto y la trazabilidad de los aceites envasados a lo lar- go de la cadena de distribución. En la última parte del artículo, se indican cifras de pro- ducción y consumo de aceite de oliva en el mundo y en la Unión Europea. Se comentan especialmente las peculiarida- des de los principales países productores de la Unión Euro- pea: España, Italia, Grecia y Portugal. Finalmente, se hace alusión al consumo de aceite de oliva en países terceros, y más concretamente la evolución del consumo y las perspec- tivas de futuro en mercados emergentes como Estados Uni- dos, Australia y Japón. PALABRAS-CLAVE: Aceite de oliva - Comercialización - Embalado - Envasado - Trazabilidad. SUMMARY Olive and olive pomace oil packing and marketing The paper describes the industrial installations and equipments used by the olive oil sector for olive oil packing, the different types of containers used (plastic, glass, tin, and carton), and the diverse technologies applied for filling, stoppering, labelling, and packing as well as the trend and new technologies developed according to the material of the containers and the markets’ demands. Some logistic aspects such as palletization, storage, and shipment of final products are also discussed. The use of modern tools and codification systems like EAN 128 permits to follow the product distribution and assure the traceability of packed oils. The last part of the article includes the world and EU production and consumption of olive oil, paying special attention to the peculiarities of the main EU producers (Spain, Italy, Greece, and Portugal). Finally, the olive oil consumption in third countries is analysed and the consumption and its trend in merging markets like USA, Australia, and Japan commented. Olive and olive pomace oil packing and marketing By José Linares, Manuel García Palma, Mariano Iñigo, José Manuel García and Juan Berzosa Grupo SOS - Carretera de Arjona, 4. 23740 Andújar (Jaén) - Spain Tel.: +34 953 515315 / Fax: +34 953 510065 e-mail: [email protected] KEY-WORDS: Filling- Marketing - Olive oil – Packing - Traceability 1. THE BOTTLING OF OLIVE OIL The basic purpose of the bottling of olive oil is to easily identify the product and to guarantee that it is safely distributed to the consumer through the channels of distribution. Olive oil is a “live” product and its bottling requires the use of proper containers as well as additional materials and the appropriate construction of bottling machinery. It is equally necessary to take maximum sanitary and environmental precautions and to avoid any operation which may alter the natural qualities of the olive oil. The key factors which may deteriorate the quality of olive oil are those which favor oxidation and rancidity with light, air, temperature and the presence of heavy metals being the most influential. All of these factors must be taken into account when selecting packing materials, in the bottling phase and during storage of the finished product. 1.1. The Container The design and selection of the ideal container is of vital importance to the entire process. In effect, aside from fulfilling its traditional functions (to contain, protect, conserve, distribute and market), the container must be subject to several other considerations such as ecological (reuse and recycling of the materials), industrial (handling, resistance, weight, etc.) and sociological (design and product information). The most common containers which are currently used in the bottling of olive oil are: Plastic. PET, transparent or opaque, is the plastic which is used almost exclusively for the packing of olive oil. Other materials such as PVC or high density polyethylene are no longer used primarily for technical, economic, and environmental reasons. Glass. The use of a glass bottle is very common. It can be either transparent or opaque. GRASAS Y ACEITES, 57 (1), ENERO-MARZO, 68-85, 2006, ISSN: 0017-3495
Transcript
Page 1: Olive and olive pomace oil packing and marketing › c36c › 5a4a... · letizado, el almacenamiento y la expedición del producto ter-minado.El uso de modernas herramientas y sistemas

68

RESUMEN

Envasado y comercialización de aceite de oliva yaceite de orujo

En este artículo se describen los equipos e instalacionesindustriales que utiliza el sector del aceite de oliva para elenvasado de los aceites de oliva, los tipos de envases másempleados (plástico, vidrio, metálicos y cartón) y las diferen-tes tecnologías de llenado, taponado, etiquetado y embala-do, así como las tendencias y nuevas tecnologías en funcióndel material de los envases y la demanda de los mercados.

Se contemplan también aspectos logísticos como el pa-letizado, el almacenamiento y la expedición del producto ter-minado. El uso de modernas herramientas y sistemas de co-dificación como el EAN 128 permite el seguimiento delproducto y la trazabilidad de los aceites envasados a lo lar-go de la cadena de distribución.

En la última parte del artículo, se indican cifras de pro-ducción y consumo de aceite de oliva en el mundo y en laUnión Europea. Se comentan especialmente las peculiarida-des de los principales países productores de la Unión Euro-pea: España, Italia, Grecia y Portugal. Finalmente, se hacealusión al consumo de aceite de oliva en países terceros, ymás concretamente la evolución del consumo y las perspec-tivas de futuro en mercados emergentes como Estados Uni-dos, Australia y Japón.

PALABRAS-CLAVE: Aceite de oliva - Comercialización -Embalado - Envasado - Trazabilidad.

SUMMARY

Olive and olive pomace oil packing and marketing

The paper describes the industrial installations andequipments used by the olive oil sector for olive oil packing,the different types of containers used (plastic, glass, tin, andcarton), and the diverse technologies applied for filling,stoppering, labelling, and packing as well as the trend andnew technologies developed according to the material of thecontainers and the markets’ demands.

Some logistic aspects such as palletization, storage, andshipment of final products are also discussed. The use ofmodern tools and codification systems like EAN 128 permitsto follow the product distribution and assure the traceabilityof packed oils.

The last part of the article includes the world and EUproduction and consumption of olive oil, paying specialattention to the peculiarities of the main EU producers(Spain, Italy, Greece, and Portugal). Finally, the olive oilconsumption in third countries is analysed and theconsumption and its trend in merging markets like USA,Australia, and Japan commented.

Olive and olive pomace oil packing and marketing

By José Linares, Manuel García Palma, Mariano Iñigo, José Manuel García and Juan Berzosa

Grupo SOS - Carretera de Arjona, 4.23740 Andújar (Jaén) - Spain

Tel.: +34 953 515315 / Fax: +34 953 510065e-mail: [email protected]

KEY-WORDS: Filling- Marketing - Olive oil – Packing -Traceability

1. THE BOTTLING OF OLIVE OIL

The basic purpose of the bottling of olive oil is toeasily identify the product and to guarantee that it issafely distributed to the consumer through thechannels of distribution. Olive oil is a “live” productand its bottling requires the use of propercontainers as well as additional materials and theappropriate construction of bottling machinery. It isequally necessary to take maximum sanitary andenvironmental precautions and to avoid anyoperation which may alter the natural qualities ofthe olive oil.

The key factors which may deteriorate thequality of olive oil are those which favor oxidationand rancidity with light, air, temperature and thepresence of heavy metals being the mostinfluential. All of these factors must be taken intoaccount when selecting packing materials, in thebottling phase and during storage of the finishedproduct.

1.1. The Container

The design and selection of the ideal containeris of vital importance to the entire process. In effect,aside from fulfilling its traditional functions (tocontain, protect, conserve, distribute and market),the container must be subject to several otherconsiderations such as ecological (reuse andrecycling of the materials), industrial (handling,resistance, weight, etc.) and sociological (designand product information).

The most common containers which arecurrently used in the bottling of olive oil are:

• Plastic. PET, transparent or opaque, is theplastic which is used almost exclusively for thepacking of olive oil. Other materials such asPVC or high density polyethylene are nolonger used primarily for technical, economic,and environmental reasons.

• Glass. The use of a glass bottle is verycommon. It can be either transparent or opaque.

GRASAS Y ACEITES, 57 (1),ENERO-MARZO, 68-85, 2006,ISSN: 0017-3495

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OLIVE AND OLIVE POMACE OIL PACKING AND MARKETING

• Metal. The metal container or “can” is atraditional packing material which has longbeen used for olive oil. It consists of a containermade of tin treated in its interior with a foodresins varnish.

• Carton. The carton is the newest container inthe olive oil industry and its application is due toits worldwide distribution and the successwhich has been obtained in the packing of otherliquids (dairy products, juice, wine, water, etc.)

The container is made with very fine layers ofplastic (polyethylene), paper and aluminium.

The use of one type of container or another, asprimary packing material, comes with theacceptance of the advantages and disadvantagesof each one, keeping in mind that the perfectcontainer does not exist. In the table 1, we havesummarized the primary functions of the containersused for olive oil.

Table 1Functional analysis of containers for olive oil

Plastic Glass Tin Carton

PROTECTION

Resistant to invasion of foreign liquids and fumes XX XXX XXX XXX

Insoluble (tasteless, odorless, without sediment) XXX XXX XXX XXX

Resistance to the pressure of a gas dissolved in the oil XX XXX XXX XXX

Protection from light XXX XXX

Shock resistant

MARKETING

May be attractively designed XXX XXX XXX XXX

Allows for creative shapes and colors XXX XXX

Reviewing of the contents (visibility, transparency, color) XXX XXX

SERVICE

Easily opened without utensils XXX XXX XX XX

Guaranteed safety seal XXX XXX XXX XXX

Leak proof and maintains its shape XXX XXX X XX

Ease of handling XXX XXX XX XX

Easy to pour XXX XXX XX XX

Allows for measuring XXX XXX XX XX

Visibility of remaining liquid XXX XXX

DISTRIBUTION

Stable in the case or on the pallet XXX XXX XXX XXX

Stackable X XXX XXX

Portable and resistant XX XXX XXX XXX

Occupies minimum space on the pallet XX XX XXX XXX

Low weight XXX X XX XXX

MANUFACTURING

May be manufactured at the bottling plant XXX XXX

Easily adapted to the filling lines XXX XX XXX XX

Permits high speed filling XXX XX X X

Requires minimal investment X X XXX XX

ENVIRONMENT

Takes up minimum space after use XX XXX

Biodegradable

Made with recyclable materials XXX XXX XXX XXX

Apt for reuse XXX

Easily incinerated. XXX

Poor Fair X Good XX Excellent XXX

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JOSÉ LINARES, MANUEL GARCÍA PALMA, MARIANO IÑIGO, JOSÉ MANUEL GARCÍA AND JUAN BERZOSA

1.2. Stages in the bottling process

The selection of a container implies differentialchanges in the selection of machinery as well asthe design and function of the filling lines (Figures1, 2 and 3). A filling line for olive oil packed in plasticcontainers is completely different from a line formetal ones. In general, the filling lines should bedesigned according to two basic criteria:

– The maintenance of a logical flow from thefilling of the raw material to the application ofadditional materials and the outcome of thefinal product.

– The maximum utilization of available workspace while keeping in mind possible futureplans for expansion and or modification of thefilling line.

The filling lines are made up of several specificmachines which are linked to one another andmaintain a logical working order depending on thedifferent stages of the process. Regardless of thetype of container used, the stages in the packingprocess are:

– Manufacturing, handling and transport of thecontainer

– Filling and capping– Labelling– Packing

1.2.1. Manufacturing, handling and transport of the container

Plastic

As mentioned previously, PET is the mostcommonly, almost exclusively used among thecontainers available for bottling olive oil because ofits technical, economic, and ecological advantagesin comparison to other plastic materials.

The PET container can be fitted to the filling linein two different ways:

– Manufactured and delivered by a supplier asan additional material

– Manufactured on sight at the bottling plant.

When the container is delivered to the bottlingplant as additional material, the feeding of emptycontainers to the filling line should be designedmanually as well as automatically (depalletizing andor placement of containers) in accordance with thenominal speed of the line.

Manufacturing PET containers at the packingplant has great technical, economic and logisticadvantages. Currently, there are two differentprocedures for the onsite manufacturing of PETcontainers.

– Integral manufacturing in two phases (injection+ blowing) directly from PET

– Manufacturing in only one phase (blowing)starting from PET preforms

The advantages and disadvantages of one orthe other of these procedures are related to thenominal speed of the filling line, whether or notthere are filling lines operating simultaneously, andthe type of handling the container will undergo afterit has been manufactured:

a) Storage in tanks + placement of containers +transport of empty containers

b) Palletizing + storage + depalletizing +transport of empty containers

c) Manufacturing of PET containers in line withthe filling machines.

Options a) and b) are the ones which arecurrently implemented in the majority of olive oilbottling plants where the containers aremanufactured on site. These options have thedrawbacks of a limitation on the minimum weight ofthe container so that it may be stored in tanks orpalletized without being damaged along with therequirement of installing empty container inspectorsand or blowers prior to the filling phase in order toavoid the presence of foreign contaminants in theinterior of the containers.

The newest trends in the industry are movingtowards option c) which is the installation of themachinery necessary to manufacture PET as onemore element in the filling line. Single phase PETblowers phase, are the ideal machines for this futureproposition for olive oil bottling plants because oftheir simplicity, wide range of manufacturingcapacity and their ease of incorporation into the restof the machines which make up the filling line. Theireconomic, technical and sanitary advantages maybe summarized in the following points:

– The limit on the weight of the container is onlydefined by its shape and future use,eliminating the need for minimum weightdemands stemming from the storage andhandling of the empty container.

– The absence of contamination or foreignbodies in the interior of the container isguaranteed. The pre-forms, after priorinspection, are blown, the container is hung byits neck and driven directly to the filler withoutundergoing any intermediate handling.

– The elimination of the concepts of “themanufacturing of containers” outside thebottling plant, storage in tanks or on pallets,depalletizing and ordering of emptycontainers, inspection/blowing of thecontainers and the conventional transportingof empty containers are all eliminated.

– Substantial economic savings are derived fromthe reduced surface area needed for the storageof empty containers. Once the containers areblown, they are bottled immediately, with anaccumulation of 2/3 minutes between PETblower and the filling machine.

– The modern system of transporting the bottlefrom the blower to the filler by hanging it by its

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OLIVE AND OLIVE POMACE OIL PACKING AND MARKETING

neck eliminates all the previous problems ofdeterioration and poor automation associatedwith the traditional system of transportingcontainers on belts.

– Additional economic savings are derived froma more rational employment of the labor forcein the entire bottling operation.

Glass

The glass container is manufactured andpalletized at the glass factory and supplied to thebottling plant as additional material.The bottling line

should be prepared for reception and manual orautomatic (depalletizing) feeding in function with thenominal speed of the filling machines. In order toguarantee the absence of foreign contaminants inthe interior of the container, it is absolutelynecessary to install machines for the blowing andvacuuming of inverted bottles prior to filling. Thenewest trends are moving towards the electronicinspection of the walls and bottoms of the bottles bymeans of artificial or x-ray vision followed by theautomatic elimination of the containers which do notcomply with the standards previously set in thecomputer of the machine.

Figure 1Filling line for plastic containers

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72 GRASAS Y ACEITES, 57 (1), ENERO-MARZO, 68-85, 2006, ISSN: 0017-3495

JOSÉ LINARES, MANUEL GARCÍA PALMA, MARIANO IÑIGO, JOSÉ MANUEL GARCÍA AND JUAN BERZOSA

Metal containers

In the same way as glass bottles, the classic “tins”are manufactured and palletized at the metal factoryand supplied to the bottling plant as additionalmaterial. The design for the reception and feeding ofthe empty containers is similar to that described forthe filling lines of glass containers. The metalcontainer may be made in two different ways:

a) Bottom and top closed at the metal plant withan orifice on the top for future filling andcapping.

b) Only the bottom is closed at the metal plantand the top is closed at the bottling plant.

The advantages and disadvantages of each oneof these methods will be explained further on whenreferring to the filling and capping stages. In thecase of receiving the tins according to method b) itis absolutely necessary to carry out the invertedblowing of the container in order to prevent thepresence of foreign contaminants after filling andclosing the container.

Carton

This type of packaging has the uniqueadvantage that the container is formed at the sametime as the filling operation on the same machinethrough bobbins which are supplied to the bottlingplant as additional material. One of the greatadvantages of this type of container is the absoluteguarantee of hygiene and purity during theformation and filling of the container.

1.2.2. Filling and capping

The filling and capping phase is one of the mostdecisive in the entire process and the arrival of theproduct to the consumer with the required qualityand quantity depends on the efficiency of this step.

The actual content of oil inside the containers isverified and registered in real time. This control iscarried out not only to comply with legislativedemands but also to guarantee an economicproduction from the filling operation.

Plastic

For the filling of PET containers, the entire rangeof filling machines which are currently used for thebottling of liquids may be employed.

– Ponderal– Volumetric– Precision level (vacuum or electronic)

The precision levels guaranteed by the makers ofthe different types of filling machines are similar aslong as the working conditions comply with minimumrecommended requirements. Level fillers require thetemperature of the oil to remain homogeneous andconstant at around 20° C. It is equally important thatthe weight of the container be homogeneous andfree from large variations. For the Volumetric fillers

the temperature factor is crucial and the oil must bemaintained at 20° C. Ponderal fillers are unaffectedby the weight of the container or the temperature ofthe oil, although it is recommended that the oil bemaintained at 20°C so that capacity problems do notarise due to a change in the density of the oil as itstemperature changes. PET bottles should be closedwith a high pressure plastic cap. A suitable cap is onewhich has the following characteristics:

– Tamper proof– Tear-tab– Safety sealed– Leak proof– Easy to open– Drip proof– Spill proof – Easy to pour

The filling and capping systems are usuallycomposed of a single unit. A modern, triblocksystem is installed so that the blowing, filling andcapping are all carried out on the same machine.

Glass

The machines used for glass are the same typementioned above for PET. The most common arethe fillers largely because of their weight distributionand their tolerance for the thickness of the walls ofglass containers. Level fillers overcome theseproblems and result in a uniform bottling with thesame level of liquid in each container.

Obviously, maintaining a constant level in allglass containers does not automatically guaranteean excellent filling curve keeping in mind anaverage margin for error. The important thing is theimage and presentation which must be compatibleat all times with consumer demands and theguarantee of actual content of oil as established bythe legislation as well as an economic productionfrom the filling process.

As a solution to the constant level problem,ponderal and volumetric fillers have incorporated alevelling station between the filling and cappingphases with the objective of bottling all glasscontainers to the same level. This operationrequires a control of the unit excess capacity of thecontainers so that a homogeneous level may beestablished at the levelling station which meetslegislative demands.

The caps used for glass containers are usuallyplastic (pressure) or metal (pilfer). Both types ofcaps must meet the minimum requirements ascommented above for plastic caps.

Sometimes shrink wraps are placed on the neckof the bottles with the double objective of decoratingthe bottle and offering a safety seal in addition tothe cap.

Metal containers

A great majority of the filling machines used forbottling olive oil in metal containers are thevolumetric type.

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OLIVE AND OLIVE POMACE OIL PACKING AND MARKETING

The closure of the tin is subject to the type ofcontainer which is supplied by the metal plant, aspreviously mentioned.

If the container supplied is closed on the bottomand on the top, the filling valve is inserted into anopening on the top. The cap is then fitted bypressure. This system has the drawback of notallowing for inverted container blowing so that thereare no foreign contaminants in the interior of thecontainer after it has been filled and capped.

When the container is supplied with only itsbottom closed, the closure of the container iscarried out with a machine specifically designedfor this purpose. In addition to allowing theinverted blowing of the container in an affectiveway, the advantage of this system is being able tofit a spout cap or a flat cap according to marketdemands.

Carton

As pointed out previously, the carton is thenewest design in containers which has beenincorporated into the olive oil bottling industry. Thephases of formation of container, filling and cappingare carried out simultaneously on the same machinewith all the advantages that can be derived from thissystem. The first commercial presentations for oliveoil were hardly distinguishable from the rest of thecontainers we are familiar with in this format fordifferent liquids (milk, juice etc.). The absence of apouring spout was a disadvantage in the firstcontainers which has since been remedied with newdesigns specifically for the bottling of olive oil. Thepouring/measuring spout is fitted to the container bymeans of a specific machine which applies the spoutand fixes it to the carton, once it is closed, using ahot adhesive.

In general, we can point out that the latest trendsin the olive oil bottling industry are moving towardsthe introduction of nitrogen with the objective ofimproving the preservation of the oil along with theprevention of the collapse of PET containers.

The function of nitrogen is to avoid the oilcoming into contact with air by removing it from thetops of the bottles. Nitrogen can be used in gas orliquid form.

In its gas form, nitrogen is injected into the fillingvalves and into the sealed tank of the fillingmachine until a complete saturation of the gas intothe liquid is achieved.

In its liquid form, nitrogen is incorporated bydoses between the filling and capping phases. It isimportant to first calculate the final pressure thecontainer can tolerate in order to avoid breaking ordeforming of the bottles.

1.2.3. Decorating the container

The bottle is decorated with the objective ofpresenting an image to the consumer and informingabout the product.

Figure 2Filling line for glass containers

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JOSÉ LINARES, MANUEL GARCÍA PALMA, MARIANO IÑIGO, JOSÉ MANUEL GARCÍA AND JUAN BERZOSA

Plastic

The decoration of PET containers is carried outwith labels which may be self adhesive or appliedwith cold or hot glue. The reasons for choosing onemethod or another are related to the desired designand quality, the speed and frequency of changes inthe format of the labels and the estimated cost ofthe labelling operation.

Glass

The machinery and the type of labels frequentlyused for the labelling of glass bottles are the sameas those used for PET containers.

The latest trends being developed for glass andplastic containers are the plastic “sleeve” type label(PET, PVC, PP).

The “sleeve” labels are supplied in the form of acontinuous bobbin and after being slipped onto thebottles, they are retracted in an electric or vaporoven until they are perfectly adapted to the contourof the container. The application of “sleeves” offersendless design possibilities for the complete orpartial dressing of the containers.

The use of promotional labels of the“detachable”, ”hanging” or “tie” type on glass orplastic olive oil containers is becoming more andmore common. When low speed filling lines areused (fewer than 2000 containers/hour), theplacement of these labels may be done manually.However, if a higher speed filler is used, then it isnecessary to resort to an extraordinarily precisemachine which has been designed exclusively forthis purpose.

Metal containers

The metal container provides the advantage ofbeing decorated in its entirety. The metal plantsupplies a lithographed container while the cap isnormally left to personalize the tin by means of“inject” markers which contain information on thedate and lot number as well as the client theproduct is being sent to.

Carton

Just like in the previous case, the entirecontainer may be decorated. The bobbins which thecartons are formed from are supplied after previousprinting and therefore offer infinite designpossibilities.

1.2.4. Packing

As a general rule, the design for the end of thefilling line is moving towards systems which permitversatility both in the packing type (in cases, ontrays, on trays with film) as well as the number ofcontainers which make up a group.

The computerized management of production,storage and distribution require significant changesin the ends of the filling lines and in the packinglines. The massive employment of radio frequencysystems in the management of warehouses and theexpediting of merchandise has made the adherenceof the pallets to code EAN 128 necessary. In orderto automate the generating and application processof code EAN 128, the cases must be perfectlyidentifiable by a scanner through the informationcontained in the DUN 14 code on the case. Thecurrent trend is to place automatic printers at theend of the line which, after reading the DUN14,produce an EAN 128 label which is placed on thepacking unit (pallet).

Figure 3Filling line for tins

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OLIVE AND OLIVE POMACE OIL PACKING AND MARKETING

2. LOGISTICS

2.1. Bulk shipping

Due to the imbalance which exists among oliveoil producing countries, concerning the differentlevels of production, consumption and exportneeds, a large amount of olive oil is shipped in bulk.This movement is carried out mainly by boat, butalso in tanks and shipping containers.

On the other hand, companies located in non-producing countries like Japan or Brazil import oliveoil in bulk to later bottle and distribute it in theirrespective countries.

2.2. Bottled Oils. Packing

In this section, we will concentrate on thelogistics surrounding the final product, bottled andready for consumption.

According to current legislation, the retail of oliveoil and olive pomace oil in the area of the EUestablishes that the final product must be presentedto the consumer in containers with a maximumcapacity of 5 liters.

The unit of consumption or primary packaging isdefined as the combination of the container and itscontents, properly labelled according to currentlegislation and with an opening system which is nolonger resealable once it has been opened.

Secondary packaging, which consists of two ormore containers which make up a single unit, ishardly significant in the commercialization of oliveoil. The most common format for plastic, glass, tinsor cartons is tertiary packaging.

In general, the retail unit or tertiary packagingwhich is sold to clients is the B-1 cardboard box or“wraparound” system. The contents of this unit varyaccording to the size and type of container.

New demands on distribution, mostly by largedepartment stores, call for the packing of PETbottles on trays which are ready for display andshipped on pallets or 1/2 pallets. The cardboardtrays are placed directly on the pallet or 1/2 pallet instacks of four. The trays are then wrapped in plasticshrink wrap with an appropriate shape andsufficient thickness to insure the successfulstorage, shipping and distribution of this modernpackaging system.

The packing system used for glass containers issimilar to the one used for plastic. When B-1cardboard boxes are used, it is normally necessaryto place cardboard separators between the bottles inorder to prevent breaking during storage, shippingand distribution. If the “wraparound” system is used,separators are usually no longer necessary.

Because of the fragile nature of glasscontainers, the shrink wrap packaging system is notadvisable.

The most common packaging system for tinsand cartons is the cardboard box. However, newdesigns for carton containers of the “prism” typeinclude a pouring spout which is placed on the top

of the container and require packaging in cardboardboxes because stacking them onto pallets maycause damage to the spout.

2.3. Pallets and containers

Even though the boxes which make up thelayers on the pallet are slightly adhered to oneanother by applying glue to the box tops, the palletsare usually wrapped in a transparent plastic film tomake sure that the merchandise does not slip offthe pallets during storage, loading or shipping.

For smaller productions, this wrapping procedureis carried out immediately before loading usingindividual wrapping equipment, one for each load.Nevertheless, on a higher industrial scale, thisoperation is usually done at the end of the filling line,by means of a high capacity installation with highlevel automation that wraps each pallet as it comesoff the production line. These prewrapped pallets arethen stored until they are shipped.

For logistic purposes, the shipping unit mostcommonly used in the bottling industry is thestandard European pallet which measures 800 x1.200 mm and consists of several stacks of boxeswith a variable height depending on different logisticrequirements.

The success of the European pallet is due to itsdimensions since its length (1.2 meters) is a littleless than half the maximum width of regulationtrucks (2.5 meters) which makes for efficient use ofthe loading capacity of vehicles.

However, in english spoken countries, the 1.000x 1.200 mm pallet is used.

Exporting from the producing countries of theMediterranean basin to other countries, includingoverseas destinations, is usually done in 40 ft.containers with a capacity of 25 European pallets orin maxi-cap containers which are 12.5 meters longand can hold 30 pallets. However, the mostcommonly used is the 20 ft. container which has theadvantage of being more manageable than theothers but requires manual handling. The 20 ft.containers are usually fully loaded with bulkcontainers in the interior and the empty spacesfilled with air bags in order to avoid shifting of themerchandise during transport.

2.4. EAN 128

Large industries in olive oil producing countries,especially in the European Union, use effectivesoftware tools and coding systems, which is thecase of EAN 128, a common demand of moderndistribution chains.

EAN 128 is a standard coding system whichuses international bar codes for the identification ofmerchandise in logistic terms, but not in detail. It isfundamentally used for the identification of shippingunits since it permits:

– The identification of the product and itsgroupings, supplying additional information

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such as lot number, manufacturing, bottling orexpiration dates, number, size and net oractual weight of the containers, etc, all ofwhich mean a substantial increase in theinformation which is automatically available tobusinesses.

– The guarantee of traceability of the productthrough the supply chain until it reaches largelogistic centers or distribution platforms.

The structure of EAN 128 is open and allows formodular application in order to comply with theneeds of different companies so that it can be usedto improve the flow of merchandise and theinformation available about the packing process,increase productivity, reduce errors and reducedocumentation times by means of the automaticcapturing of the information contained in EAN 128through optic sensors.

The label may be designed according to theinformation which suppliers wish to provide.

The use of EAN 128 focuses mainly on thelogistic process of the handling of merchandise andinformation is relayed in code via EDI (ElectronicData Exchange).

The EAN 128 identification system is presentedthrough bar codes which permit the capturing ofinformation automatically using optic sensors. Thecode is represented by so-called “ApplicationIdentifiers” which allow all the information to beincluded on the label to be classified in standardform.

Application Identifiers are numeric prefixes of 2,3 or 4 digits which are presented in parentheses inorder to give more precise meaning to the followinginformation contained in the bar codes. The rangeof data they refer to will always be found directlyafter the “AI” prefix. Currently, there are more than100 standardized Application Identifiers.

An important characteristic of these identifiers istheir concatenation, which offers the possibility oflinking several pieces of information in a singlecode.

The EAN 128 code consists of the mostcomplete alpha-numeric symbol system currentlyavailable. Its name derives from its capacity totranslate all 128 ASCII characters into code.

The general structure of the EAN 128 symbols isof the following type:

– (01) is the “Application Identifier” whichindicates that the code which follows is aDUN-14.

– 17751234123453 is the DUN-14 box code ofthe packaging units included on the pallet.

– (11) is the “Application Identifier” whichindicates the date of manufacturing.

– 970521 is the manufacturing date of theproduct contained on the pallet.

Among the different Application Identifiersavailable is the AI (00), also known as the SSCC(Serial Shipping Container Code).

This element of the EAN 128 label is the key toefficient delivery. The meaning of AI (00) is apersonalized number (similar to the licence plate ona vehicle which is associated with the delivery unit(usually the pallet) and as such, permitsdifferentiating among identical units. Thisregistration number corresponding to the deliveryunit contains computerized information on thecontent of that specific unit, its characteristics andits delivery specifications.

The SSCC must be only assigned by thecompany which prepares the delivery unit. Inaddition, it is valid for any shipping unit, be itstandard or not, homogeneous or heterogeneous.

The SSCC is not usually used in the grouping(boxes) contained in the delivery unit. A box may beidentified by an SSCC only in cases where a singlebox may be a logistic unit in itself and thereforerequire individual tracing.

2.5. Traceability

In the year 2002, the European Parliamentpassed Regulation (CE) 178/2002 which establishesthe principles and general requirements of foodsafety and traceability, creating, at the same time, theEuropean Authority on Food Safety.

This regulation defines traceability as “theability to trace and follow a food, feed, food-producing animal or substance intended to be, orexpected to be incorporated into a food or feed,through all stages of production, processing anddistribution.”

The implementing of a tracing system has theobjective of establishing a method for evaluating thetraceability of a product from its origin (raw material)to the consumer (packaged product) with the aim ofassuring the safety and quality of the product.

The traceability of the production processrequires the implementation of the following steps:

– Individualized identification of all phases ofthe complete process.

– Automated process of data capturing.– Information system accessible at all steps.

The concept of traceability should not be limitedto the tracing of the product but should extend to allof its components. Therefore, the concept of “underwater tracing” is born, also known as “customertracing” or “supplied” in which the management andfollow up are done thanks to the coded informationcontained in the EAN 128 label.

This traceability allows the bottling plant to knowwhich products have left their warehouse and towhich client they have been sold. At the same time,it allows the distribution companies to know inwhich warehouse or platform the product they havejust purchased may be found, including the location(point of sales) of each product batch.

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If we further include “internal traceability orprocess traceability” to the additional informationprovided by the supplier, what we call “above watertraceability” or “absorbed traceability”, allows us toobtain complete and thorough information on theproduct being supplied.

2.5.1. Traceability Applications

Traceability allows for the following of a productthrough the entire supply chain. At each link of the

chain inspection should be carried out in order toknow the origin, location and route of a product:every link is important.

It is necessary to employ a common language(EAN labels and data via EDI) which permits theexchange of information (invoices, order forms,delivery notices, etc) among all parties involved inthe transaction and the automatic capturing ofinformation according to a similar scheme to theone explained in the figure 4:

Figure 4General outline of merchandise and information flow.

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2.5.2. Traceability Systems

There are two basic systems which traceabilitymay be based on: paper and bar codes. Carryingout traceability in a manual manner, with orderforms, invoices, lots, shipping notes, etc can causeproblems. It can be done well but searchesand inspections can be complicated and timeconsuming.

An adequate system requires agility, speed andprecision, especially in cases of food alert. On paper,data may be found but it lacks information. Theamount of paperwork involved in a large company isoverwhelming and a data search cannot be agile if itis done manually. Therefore, it is recommended tochange from paper to an electronic system. At thesame time, companies may take advantage of theopportunity to modernize the mechanisms of thesesystems.

The bar code may solve many of these problemseven though it is not infallible and if it is not usedproperly it may be time consuming. So commercialcoding must be unique and never ambiguous inorder for traceability to work.

There are systems which use GDS and EPCtechnologies which help to solve some problemslike out of stock or excess inventory. Identificationby radio frequency (RFID) has been one of the mostimportant recent innovations since the codes onproducts, unique to each individual article, case orpallet are printed on a label and read by a radiofrequency sensor.

It must be kept in mind that the implementationof this type of system does not require a structuralrevolution in the warehouse, although it doesrequire changes in working habits.

Radio frequency may be installed in warehouseswith conventional shelving, drive-in shelves or onautomatic silos.

2.5.3. Types of Warehouses

Conventional shelving as well as the drive-intype are storage systems in which the merchandiseis placed on shelves of easy access, one unit deep,in the first case, and more than one unit deep withaisles and diverse levels in the second case.

In another, different line, automatic systems canbe found which consist of storage racks with a muchgreater height than the previous two and with a largernumber of storage levels, which can have differentdepths accessible to automated transelevators withtelescopic forks, capable of locating material with afrequency of more than 500 pallets in a normal 8-hour working day.

A warehouse which is managed by transelevatorshas numerous advantages. The main one is toguarantee absolute traceability of all units up to theirfinal destination. Other advantages are obtained,

such as reduced workload and increased workspace, since it is taken up in height, reducing thearea occupied in the warehouse and the possibility ofknowing, at any time, the location of the inventory instock. Another great advantage is that such systemsare automated and are therefore capable ofmaintaining productivity 24 hours a day, 365 days ayear.

3. CONSUMPTION AND MARKETING OF OLIVE OIL

3.1. Introduction

The consumption and commercialisation of oliveoil go back as far as the beginnings of westerncivilization. Even today we can find evidence inplaces like Rome, where an artificial hill, calledTestaccio, was created out of the clay jars used tohold olive oil made in Southern Spain (Betica) tosupply the Metropolis. This supply lasted from thefirst century B.C. up to the final collapse of theroman empire in the fifth century A.C.

In a more contemporary context, it should bepointed out that the consumption of olive oil hasundergone constant growth over the last 45 years,especially during the 90s and up to the present.

The purpose of this chapter is to give a briefdescription of the most important markets and theirevolution from a marketing perspective based on abrief analysis of the four variables of marketing-mix1, commonly known as the “4 P’s”:

• Product: includes the characteristics of theproduct as well as its presentation (packaging),with special emphasis on aspects liketraceability.

• Price: where we will point out the elementsthat make up the varying price levels indifferent markets.

• Place: makes reference to all the necessaryactivities involved in getting the product toreach the consumer.

• Promotion: understood in broad terms as thejoint instruments which may be used topromote the product in question, whichincludes advertising and public relationsamong other things.

3.2. World Consumption

From the 1960s up to the present, olive oilconsumption and production worldwide have morethan doubled, experiencing an accumulated growthof more than 21% each decade according to theinformation provided by the International Olive OilCouncil (I.O.O.C.).

1 McCarthy, Jerome,was the first author to use this tem in Basic Marketing: A Managerial Approcah, Richard D.Irwin Inc., Homewood,Illinois, 1958.

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In order to get more precisely conclusions abouttrends in both elements, and to eliminate the possibleeffects of an unstable olive crop (alternating a goodproduction with

a poor one in a consecutive manner), togetherwith the annual results, an additional historic serieshas been added with the variable averages of threeseasons.

The Figure 5 shows how the trends in productionas well as worldwide consumption are clearly rising,with consumption slightly superior to production.

If, instead of using annual results, we use the

data which corresponds to the variable averages ofthe three seasons (Figure 6), a considerableimprovement in the correlation of the coefficients ofboth trends can be seen, especially in production asa result of the elimination of the effects of cropinstability.

In this way, it is been proved how it is the limitationsof a scarce production of olive oil which limit greaterconsumption. In other words, the worldwide demandfor olive oil is greater than the offer.

Further proof can be found in the fact that,following the increase in supply due to production

Figure 5Worldwide Production and Consumption of Olive Oil

Source: I.O.O.C.

Figure 6Worldwide Production and Consumption of Olive Oil

Variable Averages 3 SeasonsSource: I.O.O.C.

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growth in Spain towards the end of the 90s – whichin the last six seasons has represented a growth ofalmost 40% of the world’s total production – thedemand for this product has also increased. Thekey elements to such growth have been:

• An increase in land area dedicated to olivetree cultivation which has gone from 1.897,3thousands of hectares in 1985 to 2.144,0thousands of hectares in 2002 (source:Spanish Ministry of Agriculture -MAPA).

• The improvement in agriculture techniques,which included the installation of irrigation bydroplet, an increase in the number of trees perhectare, a better selection of olive variety, theapplication of insecticides, etc.

• As a consequence of the previously notedfactors, a substantial increase in the productivityof the Spanish olive has gone from 0,98 metrictons per hectare of olives for oil in 1985 to1,8904 metric tons per hectare in 2002 (source:Spanish Ministry of Agriculture -MAPA).

However, while a growth increase in the worldwideconsumption has been seen in the traditional oliveproducing countries of the Mediterranean basin, thelargest increase in consumption has been registeredfor nonproducing countries such as Holland,Germany or Great Britain within the European Union;and in countries on other continents such as Japan,Australia, or the United States.

The causes for such increase may be explained,in summary, by the following factors:

• A growing worldwide concern for health andthe consumption of healthy fats which inrecent times has been added to the traditionaldebate over saturated versus nonsaturatedfats and the negative presence of trans fats.

• The substantial growth in the consumption ofnatural foods.

• The spread of information about the virtues ofthe Mediterranean diet, and especially oliveoil.

Promotional campaigns, on an institutional basis(European Union, I.O.O.C., etc) as well as private(companies) in the last 20 years, especially innonproducing countries.

3.3. Olive Oil in the European Union

Within the fifteen member states of theEuropean Union, prior to the recent amplificationundergone in 2004, when referring to olive oil, wemust distinguish between the producing countriesof Spain, Italy, Greece and on a lower scale,Portugal; and the nonproducing countries, whichwould be the rest. France has a nominal production,entirely insufficient to supply its growing demand

In the following section, a brief description ofthese markets will be made with special emphasison Spain and Italy as they make up the majority ofconsumers in the world.

3.3.1. Olive oil in Spain

The Spanish bottled olive oil market is a maturemarket in which large variations in total volume arerelated to elevated increases or decreases in itsprice. In this sense, the demand for olive oil in Spainis practically inelastic.

One of its specific characteristics is in reference toits segmentation based on the type of products foundon the market, always in accordance to Regulation(EC) N° 1019/2002 of the Commission of June 13,2002 on the norms of the marketing of olive oil. Saidsegments, clearly differentiated, are the following:

• Extra virgin olive oil.• Virgin olive oil.• Olive oil with a mild flavor: made up of

between 80 and 90 per cent refined olive oil,with the other 10 or 20 per cent coming fromvirgin or extra virgin olive oil. This oil has amaximum acidity of 0.5%.

• Olive oil with an intense flavor: consisting ofbetween fifty and sixty per cent refined olive oilwith the rest coming from virgin or extra virginolive oil. Its acidity level is situated between0.6 and 1% which lends a more intense colorand flavor to the oil.

At the same time, the greatest evolution in whatis referred to as the product per se has been aimedat the oils of the extra virgin type. By means of theprogressive development of the “ProtectedDesignation of Origin” (PDO) and GeographicIndications as well as pure varieties, extra virginolive oil has undergone a similar trend to the oneestablished years back in the wine industry.Nevertheless, these new products, positioned in anelevated price range, continue to be hardlysignificant in terms of volume.

In recent years, there has been a continuinggrowth in the consumption of extra virgin olive oil indetriment to the other types, especially virgin oliveoil (Figure 7).

Another peculiarity is the generalized use ofplastic containers in all olive categories, includingextra virgin. Plastic makes up for 96% of the totalcommercial volume. Of the rest, 3% corresponds toglass bottles used for extra virgin olive oil from thehigh price ranges (organic, monovarietal, PDO andsimilar), and the final 1% corresponds to thetraditional tins (source: Scantrack Nielsen).

The biggest changes which the bottling industryhas undergone in recent years have basicallyconsisted in the complete substitution of PVC, whichwas used throughout the industry during the beginningof the 90s, for PET containers due to their ecologicaland recycling benefits; and in the significantimprovement in capping, which has graduallyincorporated better and better leak proof systems.

The general use of plastic containers for oliveoil, as well as seeds oils, is influenced by the factthat this product is considered to be a product ofprimary necessity, which, at the same time, hasmade their use an advantage for consumers as

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determined by the Distribution as manifested by thelowest retail prices in all of Europe. In addition, thisconsideration is the reason why olive oil is amongthe items that must be included in the productselection of all food markets in Spain, along withother types of establishments, such as conveniencestores, for example.

As far as promotional campaigns are concerned,they are mostly centered on activities at the point ofsales, organized by the different brands which existon the market through negotiations with theirdistribution chain of choice. Therefore, they arespecific activities which correspond to each operator,and are not generic campaigns, except in the case ofthose promoted by public institutions, which could be,for example, the European Union or the regulatingcouncils of the Designation of Origin.

In what is referred to as advertising, only theleading brands use this tool as a general practice,always seeking to distinguish themselves fromother competitors.

3.3.2. Olive oil in Italy

As in the case of Spain, the Italian market is amature market so its volume is very stable and itsdemand is inelastic.

In reference to categories, they are extra virginolive oil and olive oil exclusively, without distinguishingany subcategories of the latter.

In Italy, an increase in the consumption of virginextra can be seen to the detriment of olive oil, and ona much larger scale than in the case of Spain. Theconsumption of virgin extra olive oil makes up for75% of total consumption in Italy (Figure 8). In this

Figure 7Evolution of the Olive Oil Market in Spain

Source: National Association of Packing and Refining Industries of Edible Oils

Figure 8Evolution of the Italian Olive Oil Market

Source: Nielsen

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way, the development of PDO and monovarietieshas had a more positive effect on volume in Italythan in Spain.

In this country, the marketing of bottled olive oilis done almost exclusively with glass containers,with a small amount of tins. At the same time, thisattitude of adding value to the product is reflected inits price, which is somewhere between 15 -- 20%higher than in Spain.

Nevertheless, this product is still considered ofprimary necessity in nutrition and its presence isextended throughout all forms of food distribution. Inaddition, since olive oil is one of Italy’s mostemblematic food items, it can be found in a variety ofestablishments, including souvenir shops for tourists.

Finally, promotional campaigns are alsocentered around the point of sales and advertisingis used only by the leading brands.

3.3.3. Olive oil in Greece

As a traditionally producing country, the nationalmarket for olive oil is also a mature market andvolumes and demand for the product have thesame characteristics as in Italy and Spain.

However, due to the geographical situation ofGreece, made up of a multitude of islands with amountainous mainland, the logistic function ofcommercializing olive oil is especially complicated.Distribution is not as well developed as in otherEuropean Union countries and therefore, the levelof local consumption (self-supplying directly fromthe pressing mills) is very high.

Regarding commercialized categories, theexceptional quality of Greek olive oil in general,results in the exclusive consumption of extra virginolive oil, which is sold in glass containers at a pricewhich is situated somewhere between the prices inSpain and Italy.

3.3.4. Olive oil in Portugal

The last of the true producing countries in theEuropean Union, prior to the recent increase in thelast year, is Portugal, since although France is alsoa producing country; its production barely covers5% of its current consumption.

In contrast to other producing countries in theEU, the olive oil market in Portugal is still growing.Given the fact that the increase in local productionis inferior to the increase in consumption, the needto import olive oil (especially from Spain) isbecoming greater and greater. This importing ofolive oil is done in bulk and then bottled and soldunder Portuguese brands.

The commercialized categories are extra virginolive oil and olive oil. In both cases, the acid level isclose to the limits which are stipulated in EUregulations in consideration of a preference forintense, robust flavors.

The oil is normally bottled in glass containersand its prices are similar to those in Spain.

3.3.5. Olive oil in other countries of the EuropeanUnion

The consumption of olive oil in non producingcountries of the European Union has more thandoubled in the last 15 years, resulting in aCumulative Annual Growth Ratio of more than twodigits. In recent times, no other food product hasexperienced such a constant increase over such aprolonged period of time.

Once again, this growth can be attributed to thespread of information about the nutritional benefitsof the product and in which the promotionalcampaigns developed by the Directorate-General forAgriculture of the European Commission in the midto late 90s have played an important role. One resultof these campaigns is the International ConsensusStatement about Dietary Fat, the MediterraneanDiet, and Lifelong Good Health 2000, elaboratedduring the International Conference on theMediterranean Diet which was held at the RoyalCollege of Physicians in London on 13 and 14 ofJanuary, 2000. The document states that “There isincreasing scientific evidence that there are positivehealth effects from diets which are high in fruits,vegetables, legumes, and whole grains, and whichinclude fish, nuts and low-fat dairy products. (...).Thetraditional Mediterranean Diet, whose principalsource of fat is olive oil, encompasses these dietarycharacteristics.”

While promotion has brought about a sampling ofthe product and this last factor has encouragedfurther purchase, the Distribution has gone on toinclude olive oil among its general inventory ofproducts so that today it can be affirmed that olive oilis present in all major food retail centers in Europe.

Commercial categories vary greatly from onecountry to another. They range from the practicallyexclusive sale of extra virgin in France to theadditional presence of both extra virgin and olive oilin Holland and Belgium. The significance of organicextra virgin olive oil must also be pointed out forcertain markets like Germany and the UnitedKingdom.

As far as its packaging is concerned, olive oil isusually found in glass containers and, in a smallerproportion, in tins. The use of plastic containers isreserved for larger capacities which are used inFood Service.

Due to the fact that this product does not have ahigh turnover for now, its retail price is situatedsomewhere above the price in Italy.

3.4. Olive oil in nonproducing countries.Major markets

Although almost all the producing countries ofthe Mediterranean Basin are notable consumers aswell, the majority (for example Tunisia, Morocco,Syria or Turkey) are markets which have not yetbeen modernized as far as Distribution isconcerned and most of their consumption is basedon local sales.

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Therefore, for this article, more emphasis has beenplaced on the development of the commercialization ofolive oil in some nonproducing countries so that theymay serve as a model to follow in other places. Thesecountries are the United States, Japan and Australia infunction of the total volume of consumption which hasbeen reached in the first country and in the growthratios in the last fifteen years in the other two.

3.4.1. Olive oil in the United States

At present, the fourth largest market for olive oilworldwide is the American market, having morethan doubled its volume in the last 15 years.

There are two fundamental factors which havedetermined such growth:

The intensity of promotional campaigns: For a longtime, the access to olive oil in the United States hasdepended on Italian and Hispanic ethnic food markets.Nevertheless, the initiation of promotional campaignson behalf of the International Olive Oil Council as wellas other organisms such as the Instituto de ComercioExterior (in the case of Spain) have made animmediate impact on the increase in consumption inthe United States, which is illustrated in Figure 9.

Growing concerns over obesity and heart disease:The different health departments in the United Stateshave determined that obesity is to be considered anepidemic, making it responsible for a number ofdiseases, among which heart disease is the mostserious and one of the leading causes of death in thiscountry.This has progressively led to the promotion ofthe use of fats from vegetables in place of animal fatsat the beginning of the 90s. After that, they have goneon to establish the virtues of vegetable oils (in liquidform) as opposed to hydrogenized fats (in solid form)towards the end of that same decade. Finally, theycurrently point out the benefits of the consumption ofvegetable oils which are rich in monounsaturated

acids (such as olive oil) as opposed to those which arerich in saturated acids. Therefore, it is especiallyrelevant that the U.S. Food and Drug Administration(FDA), on the first of November, 2004, would make a“qualified health claim for monounsaturated fat fromolive oil and reduced risk of coronary heart disease”on the labels of olive oil and on certain foods whichcontain olive oil. Such an allegation on the nutritionand health benefits of a conventional food item, thethird and last authorized by the FDA since the processfor the inclusion of such claims began in 2003,consists of the following:

“Limited and not conclusive scientificevidence suggests that eating about 2tablespoons (23 grams) of olive oil daily mayreduce the risk of coronary heart disease dueto the monounsaturated fat in olive oil. Toachieve this possible benefit, olive oil is toreplace a similar amount of saturated fat andnot increase the total number of calories youeat in a day. One serving of this product[Name of food] contains [x] grams of olive oil."

All of this has contributed to an increase in thepresence of olive oil in food establishments, which,together with the elevated price set for this product(between 60% and 80% higher than in Spain) hasresulted in olive oil having the highest selling value inretail distribution for the category of pourable oils.2

Approximately 3/4 of its commercialization is foundin glass containers, with the rest being sold in tins.

Finally, in reference to olive oil types, in addition toextra virgin and olive oil, the type “extra light” can befound. This oil consists of 95%-98% refined olive oilcombined with the remaining 5%-2% virgin olive oil.

3.4.2. Olive oil in Australia

The process of marketing olive oil in Australia hasfollowed a similar path to that for the United States(Figure 10), with even more impressive results since

Figure 9Evolution of the Olive Oil Market in the United States

Source: International Olive Oil Council (I.O.O.C.)

Figure 10Evolution of the Olive Oil Market in Australia

Source: International Olive Oil Council (I.O.O.C.)

2 The North American Retail Olive Oil Market. The Chairman’s Report, North American Olive Oil Association, NewYork, July 8, 2005.

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the consumption of this product has almost tripled inthe last 15 years.

Nevertheless, there are some material differencesin prices as well as products with respect to theAmerican market.

Regarding products, olive oil makes up foralmost 70% of total consumption, while extra virginrepresents the remaining 30%. The traditionalformat has been the tin, although recently, glasscontainers seem to be more and more common.

The price of olive oil in Australia is situated belowthe American price but still approximately 40 - 50%higher than Spanish prices.

3.4.3. Olive oil in Japan

Another market which the IOOC has considereda priority when it comes to its promotional activitiesis Japan. In this country, the increase in theconsumption of olive oil has been the highestworldwide after registering a TACC of 17.4% in thelast 15 years. As can be seen in Figure 11, also inthe case of the Japanese market, remarkableresults have been brought about from the samepromotional activities carried out by theinternational organism I.O.O.C.

In reference to commercial categories, olive oiland extra virgin share the market in a practicallyidentical distribution, with the tin being the mostcommon format for Food Services while glasscontainers are found in the retail sector.

Finally, Japanese prices may be the highest inthe world, resulting from the high consideration inwhich Japanese consumers hold the product.

3.5. Olive pomace oil

At the beginning of the 90s, the introduction of atwo-phase system in olive pressing mills, especially

Spanish mills, was begun with the objective ofsolving the serious environmental problem causedby the elimination of vegetation waters. This hasbrought about a significant loss in the availability ofolive pomace oil.

For a long time, olive pomace oil been usedprimarily in the Food Service Industry and especiallyin the Food Canning Industry throughout Europeafter the EU began promoting the use of olive oils forthe elaboration of certain canned goods by means ofeconomic restitutions. However, it must be pointedout that after November 1, 2005, the CommonMarket Organization for the olive oil and table olivesector3 comes into effect and does not contemplatesuch economic aids.

It must also be pointed out that the olivepomace oil has been a significant part of themarket in Europe (Spain and Portugal) as well asin other countries (Middle East). Nevertheless,Spanish health authorities declared an alertconcerning olive pomace oil in July, 2001 becauseof the presence of benzopirene in the oil, eventhough there was no existing national or Europeanlegislation concerning the issue at the time. Thisalert caused a drop in the national market as wellas the traditional Arabic markets which has neverbeen recovered and current volumes are less thana third of what they were before the “pomace oilcrisis”

Future Challenges

One of the objectives that the olive oil sectormust reach within a short period of time is theabsolute traceability of bottled olive oil. Internaltraceability as well as “under water” traceability arepractically resolved, especially on the part of largeindustry. However, for the traceability of providers or“above water”, which would permit access tovaluable information relating to raw materials (oliveoils) which producers supply to the bottling industry.This type of traceability would facilitate knowledgeabout varieties of olives, sanitary treatmentsapplied at the trees, geographical location,incidents relating to climate, irrigation, pruning,insect attacks, date and collection system, the millwhere the olive was pressed, etc.

From a quality point of view, the improvement inthe olive collecting system requires separate thefruit picked up off the ground from the one pickeddirectly from the tree, to obtain extra virgin olive oilwith greater sensory quality.

Finally, from the safety and food hygiene standpoint, one important aspect of a product like oliveoil, more and more valuable to consumers as ahealthy product, prototype of the Mediterraneandiet, would be to achieve an olive oil which is madewithout any contaminating chemicals (PAHs, heavy

Figure 11Evolution of the Olive Oil Market in Japan

Source: International Olive Oil Council (I.O.O.C.)

3 EU Regulation n.827/04 which includes the previously mentioned Common Market Organization, and EU Regulation n. 864/04,which introduces necessary changes in the Community Agricultural Policy (CAP) required for the enforcement of the OCM.

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GRASAS Y ACEITES, 57 (1), ENERO-MARZO, 68-85, 2006, ISSN: 0017-3495 85

OLIVE AND OLIVE POMACE OIL PACKING AND MARKETING

metals, pesticides, etc.). With respect to the PAHs,Regulation (EU) 208/2205 which came into effecton April 1, 2005, establishes a maximum content of benzopirene in vegetable oils at 2 μg/Kg, andtherefore regulates the presence of suchcontaminants. Nevertheless, with respect topesticide residuals, Spanish olive oil, which makesup more than 50% of the world’s production, ispractically the only one in the Mediterranean basincontaining considerable levels of certain pesticides.This fact presents a problem with the marketing ofa product sold for its nutritional benefits and for itshealthy image.

This problem is even more serious whenconsidering that Spain is precisely the countrywhich is progressively increasing its quota of extravirgin olive oil consumption. On the other hand, alarge part of the Spanish production is shipped inbulk to other European Union countries where it isused as habitual ingredient in a large variety ofbrand names.

Therefore, fitosanitary treatment must be carriedout in a way which does not result in the presence ofcontaminants in olive oils. On the other hand, it wouldbe advisable to establish legal guidelines whichregulate its presence in olive oil.

REFERENCES

ANIERAC. 2005. Estadísticas de las ventas de aceites en-vasados con marca en España en el período de eneroa diciembre de 2004. Asociación Nacional de Industria-les Envasadores y Refinadores de Aceites Comestibles(ANIERAC). Madrid, February 4th.

CE Rules. 2002. n° 178/2002 del Parlamento Europeo ydel Consejo de 28 de enero de 2002, por el que seestablecen los principios y los requisitos generales dela legislación alimentaria, se crea la Autoridad Europeade Seguridad Alimentaria y se fijan procedimientosrelativos a la seguridad alimentaria. Official Journal ofthe European Communities n° L 031 February, 1st.

CE Rules. 2005. 63/Doc. N.3 Corr.1. Consejo OleícolaInternacional (IOOC), 15/11/2005.

Francisco Polledo JJ. 2002. Gestión de la SeguridadAlimentaria. Madrid A. (Ed.) Ediciones Mundi-Prensa.Madrid.

Madrid A. 1989. Manual de Industrias Alimentarias. A.Madrid Vicente Ediciones. Madrid.

MAPA. 2004. La Alimentación en España 2003. Ministeriode Agricultura, Pesca y Alimentación (MAPA). Madrid.

Paine FA., Paine HY. 1994. Manual de envasado de ali-mentos. A. Madrid Vicente Ediciones. Madrid.

Recibido: Septiembre 2005Aceptado: Noviembre 2005


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