Italian olive oil prices drop as gap with Spain narrows

The price gap between Italian and Spanish extra virgin olive oil is narrowing significantly. In Foggia, Italy, the price has dropped to approximately 4.00 euros per kilogram, a 5.9% decrease from previous levels. This brings the differential with Spanish prices in Jaén, which stand at 3.33 euros per kilogram, down to just 67 cents per kilo.

Industry leaders, including Daniele Salvagno of Redoro Frantoi Veneti, have expressed concern regarding this trend. Salvagno warns that competing solely on price risks undermining the specificity of Italian olive growing, which relies on biodiversity, unique varieties, and traditional territories rather than just volume and cost reduction.

In Puglia, while Foggia has seen a decline, prices in Brindisi, Lecce, and Taranto remain stable at 4.20 euros per kilogram. The falling quotations in Foggia create challenges for producers, as lower revenues make it harder to cover the costs of the entire production cycle, including irrigation, labor, transport, and milling.