Posted on 02/12/2025 5:10:13 PM PST by nickcarraway
Spain, the world’s largest producer of olive oil, has seen a significant drop in prices, with costs falling by 55 per cent in the past year, according to The Spanish Ministry of Agriculture.
While this is welcome news for olive oil consumers, the sharp decline raises concerns for olive oil producers who rely on stable pricing to sustain their businesses.
Why are olive oil prices falling in Spain again? The price drop comes after two years of record highs due to extreme droughts that severely impacted harvests. However, a wetter winter and a return to normal temperatures last spring have resulted in higher-than-average olive oil production, according to the International Olive Oil Council (IOC).
Spain’s olive oil output is expected to reach 1.4 million tonnes this season, a significant increase from 850,000 tonnes last year. The Spanish Ministry of Agriculture has reported that since September 2024, olive oil producer prices have fallen consistently. As of late January 2025, 100 kilograms of olive oil cost €381.89, marking a 44.9 per cent decrease since the start of the season and a 54.7 per cent drop compared to the same period last year.
Olive oil farmers and producers
Despite the relief for consumers, the price collapse is putting significant pressure on farmers and producers. Many small and medium-sized producers, particularly in Andalucía, where the majority of Spain’s olive oil is produced, are struggling to cover costs.
If prices continue to fall, some farmers may be forced to cut production or leave the industry altogether. Walter Zanre, UK managing director of the renowned Filippo Berio brand, stated: “We were really struggling to source quality olive oil last year. Now that the new season oils have arrived, prices have fallen significantly.”
Full reduction of wholesale olive oil prices does not reach supermarket shoppers Although producer prices have dropped dramatically, supermarket prices have not fallen at the same rate, funny that. According to consumer organisation FACUA, while wholesale prices have more than halved, retail prices have only decreased by 24 per cent in the past year.
A one-litre bottle of olive oil, which cost €12.88 last year, now averages €9.79 – a €3.09 reduction. Meanwhile, at the production level, the price per litre has dropped by over €4, according to a report by In Spain News.
Experts say this is because supermarkets are still selling older stock bought at higher prices. Consumers should expect further price reductions in the coming months as new supplies enter the market – rejoice!
While the current trend suggests more affordable olive oil in the near future, the industry remains vulnerable to climate conditions and global market fluctuations. The IOC predicts that better harvests across Spain, Greece, Portugal, and Tunisia will help stabilise supply, but producers warn that prolonged low prices could threaten the long-term sustainability of the industry.
I will stock up!
After two years of record high prices, they might have prepared for the inevitable drop.
No....you want fresh olive oil...it changes after a year or so.
A decent 3 liter can went from about $40 to $90 over the last year. I should hope a good harvest puts prices back under $50. I’m skimping with cheap Costco XVO for cooking, and saving the good stuff for salads only.
I always try to buy olive oil produced in Spain, since I was stationed at the Rota naval base in Andalucia for three years and my son was born there.
When I was a kid, we used to buy olive oil by the gallon. I buy smaller bottles now, but we still go through quite a bit of it.
I only buy it in glass, and the gallons are usually made of something else.
My favorite olive oils are, in no order, Oro Bailen (Spain), Saifan (Lebanon), and Mr. Papou (Greece). Saifan is particularly good on bread. I am interested in what others can recommend.
There is something wrong with this picture!
Bad years of Harvest Farmers make more money,
good years of Harvest they go broke?
Farms are not cheap to run and require a
lot of dedication.
I think this article was written by an idiot!
I know, but I go through a lot of it (pasta, risotto, salads, etc.).
If you are buying olive oil in 4 liter cans, it’s not the good stuff.
I actually ran out a couple weeks ago and used ordinary vegie oil which I use for baking. OMG...what a difference....just awful.
I find Atlas acceptable for the price. I really won’t afford the super premium stuff.
Olive oil varies a lot in taste between countries. A lot sold today is blended, which many people find abhorrent.
Fortunately the US has strict origin requirements.
I personally like California olive oil.
Check out the bottle labels where you shop.
LOL
The US has strict requirements about disclosing the type of fish for sale in supermarkets, or on restaurant menus. Tests show that more than 1/5 of restaurant fish are mislabeled. IN THE BEST CASE SCENARIO. |
Tests also show that more than 1/2 of "sea bass" is mislabeled. And you think olive oil, where fraud is orders of magnitude harder to detect, is protected by strict origin requirements.
I buy extra virgin olive oil in glass bottles. Use it every day to sauté chicken, fish or tofu, coat the egg poacher cups and to pour on steamed organic potato halves. EVOO from California is quite reasonable at Walmart, where I have an account so they deliver.
Every store in my neighborhood has it.
Here in Italy it went from ~ three Euros per liter for EVO to 10 within about a year. Finally dropping back down, though it’s still high. Snagged some the other day for six per liter.
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