Italian agriculture faces overproduction crisis in wine and olive oil

The Italian agricultural sector is facing significant challenges due to overproduction and market saturation across several key commodities. In the olive oil industry, over 200,000 tons of unsold product remain in storage, particularly affecting Puglia and Calabria. This surplus threatens the upcoming harvest as mills and cooperatives struggle to manage existing stocks.

The wine industry is also under pressure. Italian wine exports saw a decline in the first four months of 2026, with values dropping by 6.8% and volumes by 3.7%. In Abruzzo, authorities have implemented a 10% reduction in the maximum authorized yield for Montepulciano d’Abruzzo DOC to prevent further price suppression caused by high existing stocks.

In the table grape sector, Puglia maintains high quality despite heatwaves that reduced yields by approximately 10%. However, producers face intense price competition from Egyptian and Spanish imports, which has saturated European distribution channels and pressured local prices. Rising production costs for energy, water, and labor further complicate the economic outlook for farmers.