Original content
In Italy, extra virgin olive oil prices remain high, reaching up to USD 13.02 per liter (EUR 12/l). While international markets show a slight upward trend due to recovering consumption, prices abroad remain significantly lower, nearly half of Italy's local rates. Despite global market fluctuations, the strong pricing reflects the continued demand for high-quality Italian olive oil.
Jordan's olive oil production surged by 43.2% year-on-year (YoY) in the 2024/25 season, reaching 35,828 tonnes, up from 25 thousand metric tons (mt) the previous season. This growth was driven by a 33.1% increase in olives processed, totaling 184.9 thousand mt. Based on average fourth-quarter prices, the estimated production value stood at USD 315.5 million (JOD 223.9 million). Irbid led output, pressing 89.2 thousand mt of olives to produce 17.6 thousand mt of olive oil, while Aqaba recorded the lowest production. Of the country's 148 olive presses, 146 were actively operating, underscoring the sector's strong performance this season.
In Spain, olive oil prices have fallen from record highs, offering relief to consumers after a period of unaffordable costs. As Feb-25 ends, extra virgin olive oil (EVOO) and its subtypes continue to decline in price, driven by market conditions and production costs. However, industry experts caution that excessive drops could threaten the profitability of traditional olive groves, particularly in Andalusia, where small farmers and olive mills depend on stable prices to remain viable. While large corporations benefit from super-intensive production, maintaining a balanced price level is crucial for the long-term sustainability of the industry.
Olive oil prices in Spain are expected to decline within three months as improved weather conditions and higher production ease supply constraints. The country, which accounts for 50% of global olive oil production, harvested 1.4 million metric tons (mmt) in 2024, more than double the previous season’s output, following much-needed rainfall. While some price reductions occurred in late 2024, many retailers were slow to pass them on to consumers. Despite the anticipated drop, consumption has fallen by 20% over the past two years due to high costs, prompting many consumers to switch to alternative oils.
Türkiye's olive oil industry gained international recognition at a sensory analysis training in Tunisia, organized by the Tunisian National Olive Oil Office (ONH) in collaboration with the International Olive Council (IOC) and CIHEAM. The program, titled "Organoleptic Assessment of Extra Virgin Olive Oil," brought together industry experts and tasters from various countries, offering insights into IOC accreditation processes. Türkiye’s olive oil, particularly samples from Edremit, attracted significant interest, reinforcing the country's strong global market presence. This training further positioned Edremit and Türkiye as key hubs for olive oil tasting and analysis.
Spain's olive oil prices experienced a slight decline of 1.98% week-on-week (WoW) to USD 4.32 per kilogram (kg) in W9, with a 0.85% month-on-month (MoM) decrease and a significant 54.38% YoY drop. This price reduction is primarily due to a substantial increase in olive oil production during the 2024/25 season, with Spain's output projected at 1.29 mmt, a 51% YoY rise. Favorable weather conditions, including increased rainfall, have contributed to higher yields, as evidenced by regions like Sierra Mágina, which reported a notable recovery after two years of poor harvests. The improved supply has alleviated previous shortages, leading to a stabilization and gradual decrease in prices. However, industry experts caution that excessive price drops could threaten the profitability of traditional olive groves, particularly in Andalusia, where small farmers and olive mills rely on stable prices for viability.
In W9, olive oil prices in Italy surged by 19.99% WoW to USD 11.51/kg, marking a 20.49% MoM increase and an 8.85% YoY rise. This significant price escalation is primarily due to the severe droughts and heatwaves that have plagued major olive-producing regions, notably Spain and Italy, leading to reduced crop yields. Additionally, the increased frequency of olive thefts, as reported in Spain, has further strained supply chains, contributing to the upward pressure on prices. These factors collectively underscore the challenges faced by the olive oil industry, resulting in elevated prices in the Italian market.
In W9, Greece's olive oil prices declined by 2.54% WoW to USD 4.28/kg, with a 61.95% YoY decrease. This decline is primarily due to increased production following improved weather conditions, leading to higher yields and easing supply constraints. According to reports, Greece's olive oil production saw a 43% YoY increase, reaching 250 thousand tons in the 2024/25 season. Despite this, producers face challenges with elevated production costs, including higher wages and input expenses, which continue to impact the market dynamics.
In Tunisia, olive oil prices slightly decreased by 0.34% WoW to USD 4.01/kg in W9, reflecting a significant 58.58% YoY decline. This price reduction is due to a substantial increase in production; the 2024/25 season is expected to yield approximately 340 thousand tons of olives, marking a 55% YoY rise. This boost in output is due to improved climatic conditions and the expanded use of irrigated crops, which now contribute around 60% of the national production. The increased supply has exerted downward pressure on prices, making Tunisian olive oil more competitive in global markets.
Spanish olive oil producers and retailers should proactively lower prices in line with increased supply to stimulate demand. Offering promotional discounts, bundling with complementary products, and targeting price-sensitive consumers through bulk purchasing options can help recover lost sales. Expanding marketing efforts to highlight quality and health benefits may also encourage consumers to return to olive oil despite previous cost concerns.
Jordanian olive oil producers and exporters should capitalize on the production surge by strengthening distribution channels and targeting new export markets. Establishing partnerships with international retailers, promoting premium quality through certifications, and leveraging online platforms for direct-to-consumer sales can help increase demand. Offering bulk supply deals and engaging in regional trade fairs can also attract new buyers and boost sales.
Italian olive oil producers and exporters should focus on price optimization strategies to remain competitive in global markets. Offering bulk export discounts, developing private-label partnerships with international retailers, and targeting premium segments through geographic indication certifications can help justify higher prices. Exploring alternative packaging, such as smaller bottles or subscription models, can also attract cost-conscious consumers while maintaining profitability.
Sources: Tridge, Elcorreo, Jordantimes, Kamu3, Lasprovincias, Olivonews, Ofimagazine, UkrAgroConsult
Read more relevant content
Recommended suppliers for you
What to read next
