Spain's olive oil sector hit by price collapse and extreme heat

Olive growers in Andalusia are confronting a dual crisis. From 18‑24 May, extra‑virgin olive oil prices fell to €4.04 per kg, with the Picual variety dipping below the €4 psychological barrier to €3.96 /kg. The Spanish Ministry of Agriculture’s latest bulletin lists extra‑virgin at €4.20 /kg, but the trend remains downward.

At the same time, temperatures above 35 °C are stressing olive trees during the critical flowering stage, threatening the upcoming harvest. Industry leaders warn against panic selling. “A situação atual exige sangue frio” (the current situation requires a cool head) said Cristóbal Gallego, head of the Andalusian olive‑oil sector, urging producers to “maintain discipline and avoid selling out of fear.”

The sector, which supplies two‑thirds of regional production and over half of Spain’s national output, recorded 1.29 million tonnes harvested so far, close to the campaign forecast, but inventories are declining as sales slow. The price drop and heat stress together pose a serious risk to the profitability and future supply of Spain’s olive oil.