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Italy's olive oil production staged a strong recovery in the 2025-26 season, reaching 325,000 tonnes, a 31 per cent increase compared with the previous campaign, according to Ismea, Italy's national agricultural market services institute.
The rebound was highlighted by Ismea officials during a dedicated panel on the olive oil sector at Terra Madre in Turin. Despite a decline in prices recorded in 2026, the institute stressed, the Italian olive oil industry continues to occupy a stronger competitive position on international markets than its main rivals.
Structural figures underline the weight of the sector. Italy's olive cultivation covers more than one million hectares, of which approximately 289,000 are farmed organically. The country counts around 620,000 olive-growing holdings, over 4,200 active olive mills, and 51 Geographical Indications, comprising 42 PDOs and 9 PGIs.
Ismea noted that domestic production has returned to significant levels, in line with the broader international market, which has regained balance after the severe tensions of previous seasons, including a two-year slump in Spanish output and a sharp rise in prices.
On prices, despite the 2026 decline, Italy continues to outperform its main competitors. Domestic extra virgin olive oil prices remain higher than those recorded in Spain, Greece and Tunisia, and stand above the levels seen before the 2022 surge, Ismea added.
The picture is also positive on the foreign trade front. According to Ismea data, Italian olive oil imports declined in the first half of 2026, partly reflecting greater domestic availability. On the export side, while shipments to the United States and Germany contracted, sales to the United Kingdom increased, and positive results were recorded in Poland, the Netherlands and Belgium.
Among the most significant sector developments, Ismea pointed to the launch of the 'Oil Mill Bill of Exchange' (Cambiale Frantoi Oleari), a financing scheme recently introduced by the Italian Ministry of Agriculture, Food Sovereignty and Forestry, and managed by Ismea, with a budget of 40 million euros. The instrument is designed to provide liquidity to olive mills and small and medium-sized enterprises in the sector, helping them cover operating costs and manage the production phase.
The Cambiale Frantoi Oleari is the final piece in a broader set of measures deployed by the Ministry. The ColtivaItalia bill, approved at first reading by the Chamber of Deputies on 6 August and currently under Senate review, allocates 300 million euros entirely to the olive sector — 50 million in 2027, 200 million in 2028, and 50 million in 2029 — to implement the Italian Olive Sector Plan 2026-2030, adopted by decree on 13 July 2026. The plan targets structural revitalisation, increased national production, the renewal and restoration of olive groves, the modernisation of irrigation infrastructure, and the control of plant diseases.
Over the three-year period 2023-2025, the olive and olive oil sector received nearly 1.9 billion euros, with Italy's PNRR and PNC programmes contributing approximately 500 million euros to the modernisation drive, channelling funding to over two thousand businesses through initiatives covering oil mills, supply chain contracts, mechanisation, and agri-solar facilities.
Source: Il Sole 24 ORE