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The Italian olive oil sector is facing a severe crisis as market prices enter a free fall, leaving growers in a state of desperation. With the harvest season imminent, many producers are considering the drastic measure of leaving fruit on the trees, a move that signals a potential large-scale abandonment of olive groves across the country.
This alarm was raised by Unapol, a prominent organization representing olive growers, following a massive protest involving 2,000 farmers in Bari's Piazza Prefettura. The primary concern is the staggering devaluation of the product. In November 2025, olive oil was priced at 9.20 euros per kilo; currently, rates have plummeted to between 4 and 4.20 euros, with some transactions reported as low as 3.80 euros. This slump threatens the immediate economic viability of farms and the long-term stability of the industry.
The downward trend is largely attributed to a massive production recovery in Spain following two years of drought-induced shortages. Initial estimates forecast a Spanish yield of 1.6 million tonnes, a 29 per cent increase over the previous marketing year. If realized, this would bring Spanish supply close to the record highs seen in the 2021–22 season, saturating the market and driving prices down.
Areté, Italy's leading agri-food commodity monitor, reports that the extra virgin olive oil market is entering the 2026–27 season with supply recovering and prices dropping sharply from recent peaks. According to their data, EU extra virgin olive oil prices have returned to their lowest levels since 2022, while the Italian product specifically has suffered a 47 per cent price drop in just one year.
Tommaso Loiodice, President of Unapol, highlighted the severity of the situation, noting that prices have been slashed by more than half while energy and operational costs remain high. Loiodice emphasized that a price of at least 7 euros per kilo is necessary just to cover production costs, a threshold that current market rates fail to meet. He warned that the sector is moving from a state of alarm to one of total despair.
Furthermore, the industry is pushing back against non-EU imports, particularly from Tunisia, which enter under zero-tariff arrangements. Unapol argues that these imports incentivize a low-price industrial model that undermines Italy's premium quality standards. Loiodice called for the enforcement of existing laws against unfair commercial practices, specifically those prohibiting the sale of products below their production cost.
The crisis carries significant regional implications, as olive growing is a strategic sector for many Italian territories. A decline in this sector impacts retail, catering, and agricultural equipment businesses. Industry leaders fear that without intervention, the recent trend of young people entering the sector and reinvesting in the land could be reversed, leading to a permanent retreat from the fields.
Source: Il Sole 24 ORE