Spanish grape and olive producers confront sharp profit declines

The Valencian grape growers association (AVA‑ASAJA) warned of a severe commercial slowdown a month before the harvest, saying excess stocks and reduced exports to international markets are threatening growers' profitability. The association attributes the strain to war‑related trade disruptions, tariffs from former U.S. President Donald Trump and a surge of cheaper imports under EU trade agreements, noting that even low‑priced French wine is undercutting Spanish prices for red, white and cava grapes.

A new study by the Spanish Olive Municipality Association (AEMO) shows olive production costs have risen about 57 % over the past six years, driven by higher labour, machinery, energy and fertilizer prices linked to global geopolitical factors. Most olive farms now operate at a loss, with production costs ranging from €3.08 to €5.31 per kilogram of oil, while the average market price in June was only €3.26 per kilogram, well below the €5 level needed for profitability.

Both sectors highlight the broader financial pressure on Spain’s agriculture, as rising input costs and competitive imports squeeze margins for growers across the country.