Sustainability evaluation of olive oil mills in Andalusia (Spain): a study based on composite indicators

Abstract

In recent times, the need for food systems that, in addition to being economically viable and socially equitable, use environmentally friendly production processes has made sustainable production one of the olive oil sector's main concerns and priorities. In this context, evaluation of the economic, social and environmental performance of olive oil companies and the design of sustainable management alternatives have become fundamental activities for companies. Thus, this article's main objective is to measure the sustainability of a representative sample of olive mills located in Andalusia (Spain), the leading olive oil-producing region internationally, and to identify its determinants. First, based on data envelopment analysis, synthetic sustainability indices are constructed. Second, truncated regression analysis and bootstrapping techniques are used to identify the determinants of the sustainability of olive oil mills. The results show that factors such as company size, commitment to quality, and manager training and professionalisation are crucial elements for the sustainable development of olive oil mills. These results can be useful for company managers in the design of strategies aimed at improving company sustainability.