Oil: Ismea to provide a further 40 million in grants for oil mills
The new ‘bill of exchange’ provides for five-year, interest-free loans of up to 300,000 euros to manage stock levels
New aid measures to tackle the olive oil crisis are on the way. ISMEA, the Institute for Agri-Food Market Services overseen by MASAF, is stepping up its support for the olive sector with the new ‘Cambiale Frantoi Oleari’, a financial instrument designed to provide liquidity to small and medium-sized enterprises in the sector and to meet their working capital requirements relating to olive milling and the production of extra virgin olive oil. The measure, approved today by the Institute’s board of directors following the Ministry’s approval on 18 September and just a few days after the €16 million call for proposals for the most vulnerable, managed by Agea, will be open on the Ismea portal until 20 November with a total budget of €40 million and provides for two lines of support, dedicated respectively to agricultural oil mills and agro-industrial oil mills, alongside a third strand, currently being finalised, designed to broaden the range of businesses eligible for support.
The key element of the first two strands of the scheme is the increase in stock levels: oil mills are eligible for the scheme if, as at 30 June 2026 compared with 30 June 2025, they have recorded an increase of at least 25 per cent in eligible stocks of extra virgin olive oil, resulting from milling actually carried out at the applicant’s premises. Oil purchased in processed form, consignments held on behalf of third parties and those lacking adequate traceability requirements are excluded from the calculation.
The aim of the measure is to provide support, in particular, to businesses which, faced with a significant increase in stock levels, are having to cope with greater liquidity requirements, thereby enabling them to plan the timing of the marketing and sale of their oil with greater flexibility.
A third line of support is also envisaged, aimed at oil mills which, even in the absence of stock or a significant increase in stock, are tangibly affected by the economic and financial crisis in the sector. Access to this scheme will be subject to verification of the difficult circumstances through objective indicators, relating in particular to the fall in selling prices, trends in production costs and the narrowing of profit margins. The criteria and operational procedures for the new scheme will be set out in subsequent measures.
For agricultural oil mills, funding may range from 3,000 to 50,000 euros and may not, in any case, exceed 50 per cent of turnover. For agro-industrial oil mills, the amount may be up to 300,000 euros, again subject to the 50 per cent limit on turnover. For this scheme, collateral must be provided amounting to at least 120 per cent of the amount granted, with the option of also using a non-possessory pledge on stock.
