
Italy is becoming increasingly reliant on imported olive oil as a two-decade contraction in domestic production reshapes the country's trade balance, according to data from Italy's National Statistics Institute (ISTAT).
The country produced 379 million liters of olive oil in 2025, while imports climbed to 565 million liters, marking a significant inversion of the traditional supply structure.
Over the past twenty years, Italian olive oil output has fallen by 38%, down from 603 million liters in 2006. During the same period, imports expanded by 44% and exports grew by 43% to reach 298 million liters.
The 2025 export volume accounted for nearly 79% of domestic production, leaving just 81 million liters of Italian-made olive oil available for the local market — a steep drop from 394 million liters two decades earlier.
The production decline has occurred even though the area under olive cultivation has remained almost unchanged. Between 2006 and 2025, planted area shrank by only 1.4%, but average yields fell by 26.1%, sliding from 30.7 to 22.7 quintals per hectare. ISTAT attributes the drop to a combination of climatic stress, phytosanitary challenges, and structural production-related pressures.
Looking ahead to the new season, high olive oil inventories across Italy remain an additional weight on the market. Industry organizations have cautioned that large unsold stocks could complicate the start of the upcoming harvest and intensify downward pressure on the domestic market.
Source: UkrAgroConsult