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Abstract

The United States is increasing its share in global production of olive oil along with other “New World” producers. Recently, the state of California, where most of the olive oil in the US is produced, approved new regulations governing the grades of olive oil, labeling, methods of testing and traceability standards. This research report evaluates the potential costs of compliance with the new regulations and analyzes their economic impact on marketing of olive oil. The results indicate that if the compliance costs are passed on to the consumer, it may result in the decline of olive oil sales by less than one percent

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