Module 3 Discussion.docx - Module 3 Discussion Spain’s...

Module 3 Discussion
Spain’s Olive Oil Export
This past year’s season has rendered much of the EU’s major olive oil producers like Italy and
Greece with deficits as large as half the season prior. All this stemming from recent cold snaps
and heat waves along the Mediterranean. Ironically, the Spaniards have climate change to thank
for their success (Pacheco, 2019).
Spain’s olive season was much more conducive to a healthy harvest than that of the rest of the
EU. A staggering 1.22 million tons are expected to be exported out of Spain this season, more
than half of the worlds supply (Pacheco, 2019). This drastic rightward shift of the demand curve
for Spain’s olive oil production has made not only the supply, but the price of it cheaper for
locals. This follows the law of demand – where price and quantity are inversely related (Arnold,
2019). So, as the quantity Spain must export to counteract the deficit felt by the other countries