Olive oil

Olive oil: with prices plummeting, producers are threatening to leave the olives on the trees

The sharp rebound in Spanish production has triggered a slump in prices. For ‘Made in Italy’ products, prices have fallen by 47 per cent in a year. Unapol sounds the alarm: olive groves at risk of being abandoned

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Olive oil prices are in free fall, causing serious hardship for olive growers who, with the olive harvest just around the corner (and in some cases already underway), are considering leaving the fruit on the trees. This decision, bordering on desperation, is a prelude to the abandonment of the olive groves.

Two thousand olive growers take to the streets in Bari

This is the gist of the cry of distress issued by Unapol, one of the leading organisations representing olive growers, which – in the wake of the protest by 2,000 olive growers held on 12 October in Piazza Prefettura in Bari – is now calling for the authorities to take action.

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Prices for extra virgin olive oil have halved in just a few months

Among the main concerns – as highlighted by Unapol – is the fall in olive oil prices. In November 2025, prices stood at 9.20 euros per kilo; today they range between 4 and 4.20 euros, with reports of prices as low as 3.80 euros. This significant slump poses a risk not only to the economic viability of the new harvest but also to the future of many farms.

An upward trend triggered by the rebound in Spanish production (+29%)

A trend triggered, following two years of supply shortages (due to drought), by a strong recovery in Spanish production. Initial production estimates for Spain forecast a yield of 1.6 million tonnes, a full 29 per cent higher than in the previous marketing year. If confirmed, the Spanish harvest would bring total Spanish supply at the start of the marketing year close to the highest levels ever recorded in the 2021–22 marketing year.

Areté: Italian sales plummet by 47 per cent in a year

Hence the downward spiral in prices. “The extra virgin olive oil market,” announced Areté – Italia’s leading company in monitoring agri-food commodity prices – “is heading into the 2026–27 season with supply recovering and prices falling sharply compared with the peaks of the last two years. “During 2026,” Areté continues, “prices for EU extra virgin olive oil have returned to their lowest levels since 2022, whilst Italian extra virgin olive oil has seen a 47 per cent drop in the last year alone.”

Loiodice (Unapol): the price should be at least 7 euros per kilo

“The sector,” adds Unapol’s president, Tommaso Loiodice, “is going through a severe crisis. Compared with last year, the price of olive oil has fallen by more than half, and farmers can no longer cover the running costs of their farms. We must also take into account the rise in energy costs. To at least cover production costs, the price of olive oil should not fall below 7 euros per kilo. This threshold highlights the gap between current prices and the economic needs of the farms. The new season looks set to be very difficult from an economic point of view. The fear is that we may move from sounding the alarm to despair.”

Focus on preferential imports from Tunisia

From the olive growers’ perspective, olive oil imports from non-EU countries (particularly Tunisia) under preferential arrangements or even with zero tariffs are in the ‘dock’. “We are calling for a halt to these zero-tariff imports,” adds Loiodice, “which further encourage the influx of low-cost extra virgin olive oil. All this does is undermine Italia’s premium product and incentivise an industrial model that prioritises low prices over product quality.”

Another approach: enforcing the rules against unfair practices

According to the president of Unapol, there is also another option available to defend Italian extra virgin olive oil: to enforce the existing regulations against unfair commercial practices.

“There is a law,” continues the Unapol president, “which prohibits the sale of products below cost. Even though there are as yet no legal criteria for determining the fair price to be paid to producers, in my view the time has come to enforce this law.”

Many producers are at risk of abandoning their olive groves

The situation in the sector is becoming increasingly difficult and calls for a change of approach when it comes to countermeasures. “We are concerned about the financial stability of producers,” concludes Loiodice. “I would like to point out that olive growing is a strategic sector for many regions in Italy. The crisis it is currently facing has a direct impact on retail, the catering sector and businesses serving the agricultural sector. When the sector has a good year, everyone benefits: shops, cafés, restaurants and businesses selling equipment. In recent years, farmers had started investing again, and many young people were also becoming involved in the sector. Now there is a risk of taking a step backwards, and many might decide to abandon the fields.”

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