oils

Asda, Tesco cut own label prices in spite of market rises Olive market turbulent; Spain hit by shortfall The olive oil market is still turbulent, with prices up and down from one day to the next, according to trade sources. However, the overall trend is an increase. "A lot of this is reaction to demand," said one source. "As soon as anyone tries to buy a significant quantity in Spain, it puts the price up. "Due to the large increases some packers have held off buying and are now forced to buy, distorting normal demand patterns." The market is set to remain very unstable until mid-February. Some UK importers have had to withdraw offers made in December for forward cover to the supermarkets for supply from January to June. Major retailers would have already taken cost price increases on own label In October and November and can now expect to face further rises. The trade source added: "We have the strange situation that in the face of these increases Asda and Tesco have recently reduced the retails for own label. They appear to be having a battle in this category which (quite sensibly) is being ignored by Sainsbury and Safeway." In Spain heavy frost in December has led Spanish growers in Catalunya to suspend exports due to the poor crop. Production will only just be sufficient to meet local demand. Packers have been buying heavily as the frost has caused widespread damage to trees in the area, and growers believe that as a result there will be little or no production next year. {{CANNED GOODS }}