Italy olive oil sector faces severe crisis amid price drops and Xylella threat

The Italian olive oil sector is facing a severe crisis characterized by high stock levels, falling prices, and biological threats. National data indicates nearly 200,000 tons of oil remain in storage, with extra virgin olive oil stocks up significantly compared to last year. Producers are struggling as market prices have dropped by approximately 40% to 50%, often falling below the cost of production. This instability is exacerbated by competition from lower-priced Mediterranean oils.

In response to regulatory pressures, the Ministry of Agriculture (MASAF) has granted a postponement regarding the mandatory six-hour window for the delivery and registration of olives. This provision, originally part of the ‘Made in Italy’ law, will now be delayed until July 2027 to prevent logistical complications for producers and mills.

Additionally, the industry is confronting the spread of Xylella fastidiosa. In Calabria, regional officials have called for farmers and nurseries to act as sentinels to detect and contain the bacterium to protect the olive groves. Amidst these challenges, the national committee ‘Orgoglio Olivicolo’ has temporarily suspended a planned protest in Bari following government commitments to address the sector's structural issues.