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Italy's renowned olive oil sector is currently facing a significant crisis, grappling with a substantial surplus of unsold stock from the previous harvest. Olive oil mills and agricultural co-operatives are reportedly holding over 200,000 tonnes of product, quantities that were placed in storage at the start of 2025 in anticipation of a price recovery that ultimately failed to materialise after initial signs of decline.
This immense backlog of full silos now casts a formidable shadow over the impending harvest. Industry stakeholders fear that unless sales significantly improve, mills and processing facilities will be unable to accept the new crop, thereby extending the crisis to agricultural producers, many of whom are already feeling the strain.
In response to the escalating situation, the Ministry of Agriculture (MASAF) has received official requests for a 'state of crisis' from Puglia and Calabria, two regions collectively responsible for more than half of Italy’s olive oil output. Such a declaration would unlock crucial financial support and potentially offer debt moratoriums to affected businesses.
However, the path to resolution is complicated by jurisdictional issues. The majority of the unsold oil is held by olive oil mills, which serve as a critical intermediary between raw agricultural production and industrial processing. Crucially, these mills are classified as artisanal businesses, not agricultural enterprises. This distinction means the Ministry of Agriculture technically lacks jurisdiction over any crisis affecting them. Consequently, MASAF recently dispatched a letter to the Ministry of Enterprise and Made in Italy (Mimit) – a document viewed by Il Sole 24 Ore – to highlight this administrative hurdle. Mimit has since responded, indicating its willingness to address the crisis facing olive oil mills within the framework of its existing agro-industrial working group.
Further efforts to mitigate the crisis include a request submitted by the agricultural association Coldiretti to MASAF. Coldiretti has proposed launching a call for tenders to distribute consignments of extra virgin olive oil to those in need. Patrizio La Pietra, the Under-Secretary responsible for the sector, confirmed this initiative, stating, 'This is an option we are working on, and we will endeavour to implement the measure as soon as possible.'
Tommaso Loiodice, president of Unapol, an association representing 35,000 olive growers, underscored the severity of the situation. 'The situation is really difficult,' he explained. 'Last year, oil millers were buying oil at a price of 7–8 euros, and today we’re down to 4–4.5 euros. Now, unfortunately, faced with the rising production costs of diesel and fertilisers, we realise that it was a serious mistake not to sell.' He added that various solutions are being explored, from declaring a state of crisis to activating schemes for the most vulnerable.
Loiodice also suggested other potential remedies. He posited that reinstating 'private storage aid,' using approximately 34 million euros annually from the olive oil Common Market Organisation (CMO) funds earmarked for operational plans, could offer a vital reprieve for businesses. However, he stressed that the primary work must be done across the supply chain. 'We need to involve the major retailers in our discussions,' Loiodice asserted. 'Extra virgin olive oil is a quality product that cannot be marketed almost exclusively through special offers. Some local large-scale retail chains are showing that they have taken the message on board and are sending out signals by stocking at least 100% Italian extra virgin olive oil on their shelves at a fair price. And then we need to work on promoting the product.' He also challenged negative perceptions of the sector, clarifying that while fraud exists, it consists of 'isolated incidents' detected by 'an effective and sophisticated system of controls.' He emphasized that the vast majority of operators uphold high standards, producing premium quality products that deserve appropriate recognition and value.
Source: Il Sole 24 ORE