Mediterranean olive oil producers face price drops and drought

Olive oil producers across the Mediterranean are facing a multi-faceted crisis involving falling prices, drought, and disease. In Italy, Oprol Basilicata reports that the sector is under pressure due to weak markets, high production costs, and significant unsold stocks totaling over 1,500 tons in Basilicata. This situation is further complicated by the first confirmed case of Xylella fastidiosa (subspecies multiplex) on an almond tree near Matera.

In Puglia, Coldiretti Puglia warns that drought and high temperatures are causing olives to become small and shriveled. Water scarcity is exacerbated by aging infrastructure, with reports indicating that 40.7% of drinking water is lost in the network, making irrigation increasingly expensive due to energy costs for pumping.

In Spain, the olive sector in the Valencian Community is also on alert. La Unió Llauradora notes that extra virgin olive oil prices have dropped by more than 15% since the start of the campaign, a decline that does not seem to align solely with supply and demand dynamics. Producers fear these falling prices will jeopardize the upcoming harvest as they face high temperatures and uncertain water availability.