Italy olive oil sector faces crisis as prices plummet

The Italian olive oil sector is facing a severe crisis characterized by plummeting production prices and rising operational costs. In some regions, such as Agrigento, prices for oil sold to mills have reportedly dropped by approximately 50 percent, potentially falling to between 5 and 6 euros per kilogram.

Industry groups, including Orgoglio Olivicolo, have declared a state of agitation, protesting the lack of concrete government action. Producers are demanding a formal declaration of a crisis state, stricter controls on imports, and improved traceability. To combat market instability, Italy has requested the activation of European Union agricultural reserve funds to provide emergency support to operators.

Several factors contribute to the instability, including high stocks in mills, competition from North African imports (specifically from Tunisia and Morocco), and increased costs for fuel, fertilizers, and pest control. In response, industry associations like AIFO and Italia Olivicola are organizing meetings to discuss modernization, sustainability, and competitiveness to help the sector navigate the upcoming production campaign.