The Olive Oil Gazette

For those of us interested in the Olive Oil Trade, here is an impressive link to one of the best collections of information on the internet of the subject. Produced out of Spain by Mr. Charles Butler, I recommend you take a glance.

We have also added this site below to our "Links" section.

Good Job Mr. Butler...

Saffron Rocket Continues UPWARD

The True Saffron Market is continuing to climb skyward. From Iran to India, the prices are up about 200 % from last year at this time and production is down dramatically...

From India metric tons went to 7 from 20 in 10 years.

While in Iran the message is mixed. Production could be high but was halved to 110 metric tons from 220 this year as "demand from the EU" is so low!

The ministry of Agriculture in Iran is still insisting on reducing Bulk Exports and thereby has single handedly curtailed demand from Europe.

All being said, the COOP's goal of selling direct has not been successful so far, and it has appeared to have decreased demand in Europe from packers without creating new markets... From the Guardian comes this article which shows how other costs have driven the market and the lack of proper controls has eroded Iran's position in the market.

As one producer put it to me, this market is in CHAOS...

Recalls, US Dollar and Thanks

The old Sovex company that decided that they liked my company's name so much they'd just steal it (we are Blue Planet Foods, LTD founded in 2000... They are Blue Planet Foods INC. spun into that name in in 2003 or 2004) has a Recall of one of their products...

you can find the information clicking this at FDA's Recall site:

It is a funny world ... I guess Karma is working to a small degree...

The US Dollar continues to slide southward. I saw an article in the WSJ : earlier this week claiming that the evident inflation of from the Dollar's 10% decline this year is perhaps a "False Alarm" with regards to inflation. They reason that the market has not passed on these increases and real increases are only at a point or so....

This is more wishful thinking I am afraid... The prices do not go up at the speed of the FOREX markets... The 10 % increase (of which 9% is in the last 10 to 12 weeks) fronts the price increases by weeks and even months as importers hesitate to be the first to increase prices. We have inventories and we are absorbing off of these price levels but I can assure you that inflation is as good as here with imported goods...

Importers cannot subsidize these increases for long and as inventories deplete, prices will be advanced at a rapid rate...

We passed on a humble increase set to take place in January. More is coming behind that... and we are not alone on the rising sea... We are all on it and will have to raise prices.

All the while there are many and much to Thank this day before Thanksgiving...

Thanks to all our clients, customers, friends, producers and suppliers for all the help and support these last years!

I look to many more with great anticipation.

Take care all and be safe...

More Pricing Moves and News

While the US $ drives the deals, there are other related costs that are being absorbed in the goods we manage. Particularly, freight related costs, costs in production from energy to the cans and glass jars,to the cost of labor... all are pressuring upward, regardless of the cost impacts up or down of the Raw Material.

The latest news is:
Mandarin Oranges...
We predicted and were correct that costs are going up about $2.00 per case on the base units of 6/#10 Mandarins in LS... The new season is going to be reflecting these by the beginning of 2008.

Ripe Olives...
The market is stable in raw material. FOB EURO costs are little changed from last year but that means they are solidly higher from FOREX alone. I am looking at our costing of Sliced Ripes which I had done only a few weeks back and find that I am off by 5%! That time, I used 1.40 to 1.42 range... we are no longer there...

Time will tell... But the short term does not look good for the US $....

Perhaps a break next year or perhaps as we are all so herding south, the market may turn around in a contrary move!

Only time will tell...

And in the meantime... PRICES ARE GOING UP... Sorry to say....

Olive Oil News

It has been recently reported that Italian Government has passed a law
(probably not enforceable) that the Origins of the olives used must be clearly stated on the Bottle or Tin of Olive Oil. This information comes from Agro Professional at www.agroprofesional.com/noticias.php?id=82491&comu=&ztipo=10&ini=0&ini2=

Also reported from the same source as well as the Independent is the news the EU has ordered the return of 176 million euros (more than half from Italy for quality control and other irregularities)of subsidies. Read at www.independent.ie/national-news/eu-orders-us-to-pay-back-83641m-in-farming-subsidies-1116705.html

The Fed Moves

Another 1/4 point reduction in interest yesterday was the result of the Federal Reserve's Meeting... The vote was not unanimous for the first time this year and only 6 of the Fed Presidents voted for the accompanying reduction in the Discount Rates...

That's a sure sign of disagreement on steps to take for what ails us and an indication that there will be no more cuts in the near term.

Early results?

Oil prices are at nominal highs going up another 4% in US $ terms...

Housing Data is still terrible...

Dollar is at 1.44 to 1.45 levels...

Is there a recession in the future??? That is the big question...