Spain’s olive oil prices fall over 50%: Good news for shoppers, bad for farmers
11/02/2025 (Euro Weekly News), - 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.”
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.