Spanish Olive Oil Research Articles

Environmental impact of the most representative Spanish olive oil farming systems: A life cycle assessment study

Agricultural production is an essential activity in the global economy that must advance towards the design of sustainability projects hand-in-hand with consumers, companies, and policymakers. An exhaustive study, in line with the guidelines set by government entities, is required to quantify this impact in an ample spectrum of environmental categories. Life Cycle Assessment (LCA) is a powerful tool that enables obtaining such information, as other authors have already demonstrated in different sectors. This study employs LCA to determine the environmental impact of virgin olive oil production, considering different agricultural and industrial production systems in Spain. For this purpose, a wide range of cultivated olive tree crops and different types of olive oil mill facilities in Andalusia have been studied-the territory of Spain with the highest dedication to olive oil production. This area has a strong emphasis on developing projects within this economic sector. The study focuses on olives, virgin olive oil and hectares of cultivation land, adopting a “cradle-to-gate” approach, and including economic allocation, considering the main processes related to its production in the agricultural and industrial phases. The study time covers the five most recent harvests (2017/18 to 2021/22) to obtain appropriate and updated environmental impact values. The results from the study time indicate that higher densification, irrigation, and slope crops lead to a higher environmental impact. Specifically, the climate change category of the functional unit ranges between 1.90 (low yield crops) and 6.09 kg of CO2 equivalent (super-intensive irrigated), while in the most representative cases, extensive crops, it results in 2.90 (rainfed) and 3.49 (irrigated) kg of CO2 equivalent. It should be noted that this study breaks new ground by thoroughly assessing the environmental impact of different olive oil production methods in Spain. It offers unique insights into sustainability within this vital sector, addressing a significant gap in current research.

The Spanish Olive Oil with Quality Differentiated by a Protected Designation of Origin

The Protected Designation of Origin (PDO), part of the EU’s quality policy for agri-food products, aims to provide consumers with reliable information on the quality of a food, linked to its origin. Olive oil has perceptible qualities derived from its place of production, which create a link between the product and its place of origin, and which can influence consumer preferences. Spain, the world’s leading producer of this vegetable fat, had 29 PDOs at the end of 2020, 25.84% of the EU total for this industry. Based on the arguments drawn from the literature and the information provided by the Spanish Ministry of Agriculture, Fisheries and Food (MAPA), this paper first analyses the importance of olive oil with differentiated quality certified by a PDO for the Spanish olive oil industry. Secondly, the t-test is applied to identify positive differences in the income earned by farmers who produce olive oil certified by a PDO. Thirdly, the international competitiveness of extra virgin olive oil (EVOO) bearing a PDO label is analysed using the Revealed Comparative Advantage (RCA) index. The evidence confirms that PDO certification adds value to the product and promotes exports. However, the Spanish olive oil industry does not perform well enough to harness the potential offered by this quality label, it as it does not manage to sell all the PDO-certified EVOO. This situation merits further investigation in future studies, and should be taken into account in the design of actions and campaigns organised by institutions involved in the industry. This article contributes to the evaluation of the quality policy for EU agri-food products and examines the recent evolution of the Spanish PDO-certified olive oil industry.

Effect of cultivar and environment on chemical composition and geographical traceability of Spanish olive oils

AbstractThis study aimed to investigate the influence of cultivar and environment on the chemical composition of Arbequina and Empeltre olive oils, and their contribution to geographical identification of olive oils from Aragon. A total of 260 olive oil samples from different cultivars (Arbequina, Empeltre, Royal de Calatayud, Alquezrana, and Royeta de Asque) from the three main oil‐producing areas of Aragon, located in northeast Spain, were selected. Fatty acid and sterol composition were analyzed in the course of three crop years (2017, 2018, and 2019). Cultivar was found the main factor influencing the variability of palmitic, palmitoleic, and linolenic fatty acid content, whereas geographic origin was the main contributor to variation in oleic and linoleic fatty acids in Arbequina and Empeltre olive oils. Cultivar also had a significant impact on sterol composition, although the effect of the production area also showed a significant effect on these oils. Crop year showed limited relevance, except for oleic and linoleic fatty acids. The interaction between the environment (e.g., crop year and geographical factors) and the cultivar (Arbequina and Empeltre) exerted a significant influence on oleic/linoleic (O/L) ratio and Δ7‐stigmastenol content, particularly in the southeast area of Aragon during the crop year with higher temperatures and drier conditions. Principal component analysis (PCA) and discriminant analysis (DA) confirmed the discriminative potential of the geographic production zone as a factor enabling the differentiation of olive oils from Aragon based on the major fatty acids and sterols.

Empirical Analysis of Unlisted Companies' Valuation Using Discounted Cash Flow Methods

Objective – This paper aims to examine the theoretical and practical aspects of the widely used discounted cash flow (DCF) valuation method. Methodology – The proposed method is probably the most widely used approach in the valuation of unlisted companies. It involves estimating the future cash flows that the company is expected to generate and discounting them to their present value using a discount rate. The study was conducted on Spanish olive oil companies between 2005 and 2020. Findings – Our results show that there are two values for valuing companies: static and dynamic values. Both values are calculated based on the sum of the updated cash value plus the remaining value. The static value provides only one value, while the dynamic value provides a range of values, resulting in a more accurate understanding of a company's value and a better comprehension of the risks associated with that value. Therefore, the company is considered a cash flow generator, and the value of the company is found by calculating the present value of these flows using an appropriate discount rate. Novelty – Despite this method being a powerful tool for evaluating companies, even in complex situations, the DCF method is subject to a significant assumption bias, and even slight changes in the underlying assumptions of the analysis can greatly alter the evaluation results. Type of Paper: Empirical JEL Classification: G12, G31, M21 Keywords: Cash flow; Unlisted companies; Valuation methods; Discounted Cash flow Reference to this paper should be made as follows: DRISSI, R. (2023). Empirical Analysis of Unlisted Companies' Valuation Using Discounted Cash Flow Methods, J. Fin. Bank. Review, 8(1), 73 – 84. https://doi.org/10.35609/jfbr.2023.8.1(4)

Sustainable recovery of phenolic antioxidants from real olive vegetation water with natural hydrophobic eutectic solvents and terpenoids

Olive oil production leads to the generation of olive mill wastewater (OMWW). Due to the presence of phenolic compounds, they are difficult to process, but they represent a source of high-added value chemicals since they have antioxidant and therapeutic properties. This work has studied the extraction of phenolic compounds from a type of OMWW, olive vegetation water, which presents these compounds in a more diluted dosage than in other studied to date, to revalue this waste stream. A real olive vegetation water from a Spanish olive oil producer was used, and liquid-liquid extraction was applied. Terpenoids and terpene-based hydrophobic eutectic solvents were systematically used to extract phenolic compounds following the concentrations of tyrosol, catechol, caffeic acid, and total phenolic content. By molecular simulation with the COSMO-RS method, 4 terpenoids, and 2 eutectic solvents were selected and compared with 2 conventional solvents. The Solvent/Feed ratio in the extraction of phenolic compounds was studied, showing that the solvents with the highest extraction results were geraniol, eucalyptol, and eutectic solvent menthol + camphor, which outperformed conventional solvents methyl isobutyl ketone and diisopropyl ether. Menthol + camphor gave total phenol extraction yields of 88.73% at a Solvent/Feed ratio in volume of 0.50, surpassing all solvents tested. A solvent reuse and regeneration process was applied by back-extraction of the 4 solvents: FTIR results showed the stability of the solvents while maintaining yields in the solvent reuse process. The phenolic compounds could be concentrated in the alkaline phase to factors up to 49.3 to the initial concentration in olive vegetation water. The alkaline phases were neutralized to obtain a precipitate with a caffeic acid content of up to 26 % wt%, and a tyrosol-rich supernatant with a concentration of up to 6.54 g/L. This work proposes a process using natural solvents to extract phenolic compounds from olive vegetation water.

An Empirical Analysis of the Valuation Methods of Unlisted Companies in Stock Exchanges

This paper investigates the method for evaluating unlisted companies in stock exchanges via the discounted cash flow (DCF) valuation method. This method seeks to determine the company's value by estimating the cash flows it will generate in the future and then discounting them at a discount rate matched to the flows' risk. Nowadays, this method is generally used because it is the only conceptually correct valuation method. The study was conducted on companies in the Spanish olive oil industry during the period 2005-2020. The results suggest two values for valuing private companies: static and dynamic value. Both values are calculated based on the sum of the updated cash value plus the remaining value. Static value provides only one value, while dynamic provides a range of values, resulting in a more accurate understanding of a company's value and a better understanding of the risks associated with that value. Therefore, the company is considered a generator of cash flows, and the value of the company is determined by calculating the present value of these flows using an appropriate discount rate. The results show that determining the discount rate is one of the most important tasks given risk and historical volatility. In practice, the minimum discount rate is usually set by the relevant parties. Keywords: Cash Flow Discounted; Companies Unquoted; Valuation methods.

Sustainable Development Goals in the Andalusian olive oil cooperative sector: Heritage, innovation, gender perspective and sustainability.

The Sustainable Development Goals (SDGs) represent a commitment to sustainability through innovation, sustainable economic growth and the diversification of economic activities. The social economy and the revaluation of rural heritage play a fundamental role in implementing and progressing towards these goals, especially in agri-food cooperatives. In the case of the Spanish olive oil industry, a substantial percentage of the business in olive oil producing areas revolves around the social economy: 70% of the olive oil produced in Spain is made by cooperatives. For these cooperatives, the implementation of the SDGs offers them a potential tool for sustainable development, diversification and the economic growth of their businesses. This article focuses on analysing the relative importance of the SDGs in the olive oil cooperative sector in Andalusia, using the Qualitative Comparative Analysis (QCA) technique and applying the fuzzy-set approach (fsQCA) to the tenets of the SDGs. Lastly, causal models have been established, the practical implications of which centre on the implementation and development of the SDGs as a means of achieving the sustainable economic growth of these enterprises. The main findings of this study suggest that the sustainable development goals on which the cooperative societies analyzed are focused, in addition to producing olive oil, promote values linked to food security, sustainability, the showcasing of heritage, and gender equality.

An integrated gasification plant for electric power generation from wet biomass: toward a sustainable production in the olive oil industry

Abstract This research work proposes an integrated gasification plant for simultaneous generation of renewable electricity and drying of olive pomace, a thick sludge with a moisture content close to 60–70% (wet basis), which constitutes by far the most abundant by-product in the Spanish olive oil industry. Due to its massive rate of production and increasing associated transportation costs, olive pomace management currently represents a substantial expense for oil mills. The integrated gasification plant, which can be installed directly at oil mills, consists of a pelletizer, a downdraft gasifier under autothermal operation fueled with dried olive pomace pellets, a producer gas cooling and cleaning unit and a microturbine as power generation unit. The wet olive pomace continuously produced in oil mills is eventually dried in a co-current flow rotary drum dryer with the hot exhaust gases leaving the microturbine at temperatures close to 300 °C, allowing a self-sufficient operation of the integrated gasification plant. The integrated gasification plant was modeled using Aspen Plus® process simulator. The developed model was validated against experimental and simulation results of relevant works. Under optimum operating conditions, the electrical efficiency of the proposed plant is 18.8%, while the additional drying stage allows achieving an overall efficiency of 51.0%. Electricity consumption by the pelletizer and ancillary equipment represents 10–20% of the net electric power generation from the microturbine. However, since the integrated gasification plant is fueled with an inexpensive by-product of olive oil production that is massively produced on-site, the plant performance parameters are remarkably satisfactory.

Familiness, business strategy and stakeholder engagement: The internationalisation of Spanish olive oil mills

AbstractBased on social capital theory and the family‐firm context, this paper studies familiness' composition and the result of the overlap of the family and firm systems, analysing their influence on the internationalisation strategies of family firms. In this relationship, the stakeholder engagement becomes at the same time an antecedent and a result when developing family businesses' strategies, being one of the most relevant the internationalisation strategies. Prior research focused on familiness as the result of proxy variables such as the percentage of ownership and management in family hands, or business size, instead of as psychological variables resulting from shared organisational culture and social interactions. Through a qualitative study based on 12 interviews of general managers and/or export managers of Spanish family olive oil mills, this study asserts that the level of familiness influences internationalisation strategies, the reasons underlying a business becoming international and its commitment to activities abroad being the role of stakeholders crucial in those interactions. The higher the level of familiness, the more likely the family business internationalisation and the higher their levels of international commitment. Additionally, the higher the concern about their stakeholders, the higher their levels of international commitment. The family businesses' concern for their stakeholders and their international commitment share a reciprocal relationship. The results regarding the relevance of familiness as social capital resources in sustaining competitive advantages support the decision to promote, develop and nurture social capital when a family business goes international.

The trade and welfare impacts of the U.S. retaliatory tariff on EU olive oil

AbstractWe investigate the welfare and trade impacts of U.S. retaliatory tariffs from the Airbus WTO dispute on EU olive oil, using a calibrated multi‐market partial‐equilibrium displacement model. The model accounts for four differentiated types of retail olive oil in the U.S. market. U.S. retailer‐blenders source olive oil in eight foreign markets and domestically and for two qualities of oil (virgin, other), and in two shipping container types (non‐bulk, bulk). We consider two main scenarios: A 100% tariff on all EU olive oils as initially announced by the USTR, and the actual and final 25% tariff on non‐bulk Spanish olive oil. The first scenario leads to significant loss of welfare for U.S. consumers of $924 million, much reduced EU olive oil exports to the United States ($360 million), and increased imports from non‐EU sources ($90 million). The second scenario has much more muted effects, with mitigated welfare losses for U.S. consumers ($55 million), strong decreases of Spanish olive oil exports shipped in smaller containers, much larger exports of bulk Spanish olive oil and other olive oils. Aggregate EU exports to the United States are slightly lower given the substantial trade diversion induced by the targeted tariff. We discuss the political economy of the contrasting initial announcement and limited implemented retaliation.

Exploration of Spanish Olive Oil Quality with a Miniaturized Low-Cost Fluorescence Sensor and Machine Learning Techniques.

Extra virgin olive oil (EVOO) is the highest quality of olive oil and is characterized by highly beneficial nutritional properties. The large increase in both consumption and fraud, for example through adulteration, creates new challenges and an increasing demand for developing new quality assessment methodologies that are easier and cheaper to perform. As of today, the determination of olive oil quality is performed by producers through chemical analysis and organoleptic evaluation. The chemical analysis requires advanced equipment and chemical knowledge of certified laboratories, and has therefore limited accessibility. In this work a minimalist, portable, and low-cost sensor is presented, which can perform olive oil quality assessment using fluorescence spectroscopy. The potential of the proposed technology is explored by analyzing several olive oils of different quality levels, EVOO, virgin olive oil (VOO), and lampante olive oil (LOO). The spectral data were analyzed using a large number of machine learning methods, including artificial neural networks. The analysis performed in this work demonstrates the possibility of performing the classification of olive oil in the three mentioned classes with an accuracy of 100%. These results confirm that this minimalist low-cost sensor has the potential to substitute expensive and complex chemical analysis.

Spain's reputation in China: analysing its effects on attitudes towards Spanish olive oil

PurposeThe objective of this paper is to analyse the elements that influence Spain's reputation among Chinese consumers, and to evaluate to what extent this country's reputation has an impact on their perceived quality of Spanish olive oil (SOO) and their intentions to purchase and recommend SOO.Design/methodology/approachThis study was carried out by surveying 399 potential olive oil consumers in China (256 of whom were familiar with olive oil and 143 of whom had no previous familiarity with the product, although they stated their intentions to consume it). The proposed hypotheses were tested using covariance-based structural equation modelling (CB-SEM).FindingsThe results show that: (1) Spain's reputation among Chinese consumers can be principally explained by its appealing environment and advanced economy; (2) reputation does not have a direct impact on intentions to purchase and recommend SOO (summary construct effect), but rather has an indirect impact thanks to the perceived quality of SOO (halo effect), and (3) familiarity with olive oil moderates these relationships.Originality/valueNo previous study has analysed this question for this food product category (olive oil), country of origin (Spain) and target market (China). This study, therefore, provides new empirical evidence regarding the formation process of Spain's reputation among Chinese olive oil consumers and the effect of the country of origin on the Chinese olive oil market. These results provide countries' policymakers with criteria for competitive country reputation management.

Tradition vs. Eco-Innovation: The Constraining Effect of Protected Designations of Origin (PDO) on the Implementation of Sustainability Measures in the Olive Oil Sector

Although eco-innovation in the agri-food sector is receiving increasing attention, the heterogeneity of firms operating in the sector encourages the development of specific sub-sectoral studies to define specific strategies. In this regard, the main goal of the present study is to evaluate the drivers of eco-innovation in the olive oil production sector. Our empirical method relies on data from Spanish olive oil mills, and uses qualitative comparative analysis (QCA). The results show that large olive oil cooperatives have an important commitment to sustainability, and that cooperation with a wider range of different agents encourages the implementation of eco-innovation, particularly among smaller firms. However, the main finding of the study is the limiting effect of belonging to a protected designation of origin (PDO) on the implementation of eco-innovative measures. Although traditional production of olive oil (production under a PDO) is still perceived as a central competitive advantage in olive oil firms, further efforts should be made to coordinate traditional elaboration with production under a more sustainable management approach.

Dimensions of social innovation in agricultural cooperatives: a model applied to the Spanish olive oil industry

The Social Economy plays a fundamental role in the implementation and development of social innova-tion practices, especially in the field of cooperatives. In the case of agri-food cooperatives in the olive oil producing areas of Spain, a substantial share of the business is based around the social economy, with CIRIEC reporting a cooperativization rate of 70%. As such, there are increasing opportunities for these cooperatives to adopt tools that enable the potential development of social innovation actions. In the present article, we conduct a literature review to explore the definitions of social innovation provided in the last decade. We then analyse the results relating to a proposed model of social innovation applied to the olive oil industry, involving the participation of an expert panel composed of people with a position on the board of directors or managers of olive oil cooperatives and companies in the olive oil industry. From the analysis of the data collected, we identify four dimensions of Social Innovation that are particularly relevant to the olive oil industry: the Economic Dimension, the Cultural Dimension, the Environmental Dimension, and the Technological Dimension. These dimensions give rise to a methodological model for the implementation of Social Innovation actions in the olive oil industry.

INFORMATION AND COMMUNICATION TECHNOLOGIES AS DEVELOPMENT TOOLS FOR SECOND-TIER COOPERATIVES

The Spanish olive oil sector is the world leader in terms of olive oil production. This sector primarily comprises companies in the social economy, especially cooperatives, which account for more than 75% of production. The emergence of second-tier cooperatives has enabled the implementation of one of the recurring recommendations by scholars, namely enhancing the commercialization of olive oil through greater concentration and integration of supply. This improved commercialization is made possible in part by the greater capacity of these companies to invest in information and communication technologies (ICTs) and human capital specialized in managing these ICTs. The use of the Internet gives these companies access to a market of unparalleled dimensions. In light of this situation, this study examines the factors that explain a higher level of online sales activity by these firms. To do so, fuzzy-set qualitative comparative analysis (fsQCA) is used. The results show that age, size, the management’s ICT training, social network activity, and outsourced ICT management are associated with greater online sales of olive oil by second-tier cooperatives.

L’étiquetage environnemental et social : Quel intérêt pour valoriser l’huile d’olive espagnole en France?

From a perspective of valorization of the Spanish olive oil at the international market, this research tries to determine the benefits of adopting environmental and social labeling of the product. Findings from a qualitative study performed to French consumers, using the Scenario method, confirm that the Spanish olive oil is perceived as a lower quality. Environmental and/or social labeling, through institutional certification, could help to improve the perceived country’s image.

Pigment profiles of Spanish extra virgin olive oils by ultra-high-performance liquid chromatography coupled to high-resolution mass spectrometry

ABSTRACT This work studies the natural pigment profiles (chlorophylls and carotenoids) of Spanish Extra Virgin Olive Oils (EVOO) produced in different Spanish regions. The simultaneous qualitative and quantitative analysis of EVOO natural pigments has been performed by ultra-high-performance liquid chromatography coupled to high-resolution mass spectrometry (UHPLC-HRMS) using atmospheric pressure chemical ionisation (APCI). The results showed a similar natural pigment pattern for all the analysed EVOOs, although the total pigments content differed significantly. Moreover, the chlorophyll/carotenoid ratio was close to 1, while the lutein/β-carotene ratio was higher than 1, showing that lutein is the most abundant carotenoid in the studied Spanish EVOOs. Data from multivariate statistical approach demonstrated that the olive variety does not discriminate between EVOO samples. However, they were classified based on their origin allowing good differentiation of samples from the Basque Country and Canary Islands from the rest of regions. The results of this study show the differences of the nature and pigments concentration of Spanish EVOO samples, parameters that are of significance for reliable characterisation.

Climate Change Will Reduce Spanish Olive Oil Production

Increased droughts will reduce southern Spain’s olive oil output by 30% before the end of the century.

Omni-channel: The future of olive oil marketing in Spain

Spain is not only the world's leading olive-producer, but also the global largest export country of olive oil with a total $163 million in 2016. The global growth in olive oil consumption affords an opportunity for Spanish olive oil industry. Omni-channel seamlessly integrates all channels to maximise consumer's service, which can be a key driver for the establishment of new olive oil distribution pattern. Thus, we propose one omni-channel model for olive oil companies to explore the global olive oil market. The proposal omni-channel model is based on Spanish olive oil companies, which account for more than 95% local market share. It also analyses the current retailing channels of olive oil in Spain, and particularly emerging experience social media, mass communication, showroom, vending machines, crowd shipping, C&C, and backward processes. Olive oil firms can set up and improve their own distribution system based on the omni-channel model proposed in this paper.

Omni-channel: the future of olive oil marketing in Spain

Spain is not only the world's leading olive-producer, but also the global largest export country of olive oil with a total $163 million in 2016. The global growth in olive oil consumption affords an opportunity for Spanish olive oil industry. Omni-channel seamlessly integrates all channels to maximise consumer's service, which can be a key driver for the establishment of new olive oil distribution pattern. Thus, we propose one omni-channel model for olive oil companies to explore the global olive oil market. The proposal omni-channel model is based on Spanish olive oil companies, which account for more than 95% local market share. It also analyses the current retailing channels of olive oil in Spain, and particularly emerging experience social media, mass communication, showroom, vending machines, crowd shipping, C&C, and backward processes. Olive oil firms can set up and improve their own distribution system based on the omni-channel model proposed in this paper.