A record-breaking olive harvest in a major producing nation has created a paradoxical crisis for the sector. While the 2025-2026 harvest exceeded forecasts, reaching approximately 200,000 tonnes, the market has been flooded, causing the price of olive oil to plummet by around 50% compared to the previous season.
This dramatic price collapse has left many farmers in a dire situation. Despite the abundant yield, the cost of labor and harvesting often exceeds the current market value of the oil. Consequently, reports indicate that a significant portion of the crop remains unharvested in groves across the country, representing a major economic loss for producers.
Industry representatives describe the situation as unsustainable, warning that the low prices threaten the viability of many small and medium-sized farms. The sector is calling for government intervention and support mechanisms to help stabilize the market and ensure farmers can cover their production costs.
The global context for olive oil has been volatile, with previous seasons marked by drought and short supplies leading to record-high prices. The current swing to oversupply and low prices highlights the sector's vulnerability to climatic and market fluctuations, posing long-term challenges for food security and rural economies.
