Collapse of olive oil prices: Appeal by 4E for support for producers

In a press release, the Scientific Society of Olive Oil Encyclopedists (4E) refers to the recent, sharp drop in olive oil producer prices in the Mediterranean and the need for market support measures. 4E is calling on the government to provide support to boost olive oil consumption, both in the domestic market and through exports, in order to stabilize prices.

The president of 4E, Vasilis Zambounis, emphasized the need to establish the National Olive Oil Council to protect olive oil production and develop a strategy that will ensure the sector’s long-term sustainability. Read the press release:

Press Release

4E's Position on the Collapse of Olive Oil Prices

In recent days, there has been an unprecedented sharp drop in olive oil producer prices across all commercial centers from one end of the Mediterranean to the other, from Portugal to Turkey. Everyone hopes for a return to a new balance in the value chain, from producer to consumer. It is everyone’s duty to take action and engage in institutional cooperation, with a focus on reviving consumption and building resilience against extreme weather events.

Vasilis Zambounis, president of 4E, said in a statement:

«It is more necessary and urgent than ever for the government, in collaboration with all relevant stakeholders, to undertake initiatives to boost olive oil consumption in the domestic market as well as exports. Only a return of demand to pre-crisis normal levels can provide the impetus for producer prices to recover. Olive oil must regain its competitiveness against much cheaper seed oils, and Greek olive oil must increase its market share in international markets. Furthermore, the government should exhaust every possible means of supporting olive oil producers by revising the operating regulations of the Hellenic Agricultural Insurance Organization (ELGA) so that olive producers affected by extreme drought and lack of rainfall are compensated. At the same time, and because there is no guarantee of a rapid return to normal climatic conditions, investments should be launched in local projects aimed at water conservation and efficient water use. These unprecedented crisis conditions make the existence of the National Olive Oil Council more necessary than ever.».

Developments in the olive oil market. Facts and figures

Although unprecedented, the collapse in olive oil prices is not inexplicable. The extreme weather conditions (droughts and heat waves) that struck Spain— the world’s largest olive oil producer, resulted in a shortfall of approximately 1.5 million metric tons in global supply. Consequently, these shortages led to a sharp rise in prices and, in turn, to a 30–40% drop in consumption. With the new 2024/25, Spain is bringing global production back to its former, historically normal levels, resulting in the price adjustments we have been seeing in recent days.

These recent developments were reported by 4E on May 28 in a press release that projected Spanish production at 1.4 million metric tons, global production at 3.2 million metric tons, and a drop in prices to 5.0–5.5 €/kilogram. The only aspect of those forecasts that was off was the timing, as they had been set for January 2025 but materialized two months earlier. Advice had also been given to producers «sell now and regret it later» at a time when prices were at €8.0–9.0 per kilogram with steady buyer interest.

With all due caution—since prices are adjusted hourly—we note that for standard-grade products, prices are around 5.0–5.40 €/kg in all shopping centers (Spain, Portugal, Greece),  Tunisia between €4.80–5.20/kg, Turkey at €4.25/kg for second-grade extra virgin olive oil, and Italy, starting at €9.20 and already down to €7.80/kilogram, with the future still uncertain as markets await a new equilibrium between olive oil producers, the industry, and consumers.

The Board of Directors of the Scientific Society of Olive Oil Encyclopedists (4E).

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What is the Scientific Society of Olive Oil Encyclopedists (4E)?

The Scientific Society of Olive Oil Encyclopedists (4E) was founded in 2018 by the authors of the *Encyclopedia of Olive Oil: Olive Oil*. It is an interdisciplinary group comprising 70 scientists from various fields, such as agriculture, chemistry, nutrition, economics, and folklore, all united by the common goal of protecting, developing, and promoting olive cultivation. 4E organizes conferences and workshops, such as the 2023 international conference on olive fruit fly control and the workshop on the role of women in olive cultivation. It seeks to develop a national strategy for olive oil and table olives, while remaining neutral on political and religious issues.