Spain olive oil market faces price drops and rising imports

The Spanish olive oil market is facing significant volatility due to a combination of surging imports and falling domestic prices. Data from the Ministry of Economy, Trade, and Industry shows that olive oil imports from Tunisia and Morocco increased by over 140% between January and July. Specifically, Tunisian imports rose from approximately 37,944 tons to over 70,099 tons, while Moroccan exports to Spain saw a dramatic increase from 396 tons to over 22,652 tons.

Local producers have expressed concerns regarding unfair competition, citing differences in labor and health standards between the EU and North African nations. This influx coincides with a sharp decline in domestic prices. In regions like Granada, the price for extra virgin olive oil has dropped from five euros to 3.3 euros per liter in a single campaign, marking a five-year low for this period.

Agricultural organizations are warning that current prices are below production costs. In Andalusia, production is expected to reach 1,261,200 tons, a 23.9% increase from the previous campaign, further threatening to depress market values. Consequently, some cooperatives are calling for the activation of market surplus withdrawal mechanisms allowed under European regulations to stabilize the sector.