2027 Italian extra virgin olive oil prices plummet. Farmers may leave olives unharvested

Italian olive oil prices have fallen by almost 50% in one year. Producers are increasingly concerned about harvesting costs and competition from low-priced imported oils.

The 2026/2027 olive oil season is beginning amid growing concern among Italian producers. After two years of high prices, extra virgin olive oil quotations have fallen sharply, placing many farms under considerable financial pressure.

According to data published by Areté and reported by Il Sole 24 Ore, Italian extra virgin olive oil prices have fallen by 47% over the past year. In some production areas, prices have dropped to €3.80–€4.20 per kilogram, levels that may not cover production costs.

UNAPOL, an Italian olive growers’ organisation, has warned that some farmers may decide not to harvest their olives because the revenue from selling the oil would not be sufficient to cover their expenses.

Why are olive oil prices falling?

One of the main factors is the recovery in Spanish olive oil production following previous seasons affected by drought. Increased international supply and larger stocks have placed significant downward pressure on prices.

Competition from olive oil imported from non-EU countries, including Tunisia, has also become an important issue for Italian producers.

Agricultural organisations are calling for stricter import controls, greater transparency regarding product origin and stronger action against unfair trading practices.

At the same time, farmers continue to face high energy, labour, harvesting and orchard management costs. The challenges of the 2026/2027 olive oil season could also affect investment decisions and the long-term future of many farms.

The risk of abandoning Italian olive groves

According to UNAPOL, many producers would need a price of at least €7 per kilogram to cover their production costs, although actual costs vary considerably between farms and regions.

Traditional olive groves, particularly those located on hillsides or in areas where mechanisation is difficult, are especially vulnerable.

Their abandonment would have consequences not only for agricultural production but also for the preservation of rural landscapes, biodiversity and Italian farming traditions.

Sangaspano continues to invest in Sicilian organic olive oil quality

Against this challenging background, Sangaspano Agricultural Estate continues to focus on quality and certified organic production, cultivating Nocellara and Biancolilla olives in its Sicilian groves.

The estate’s own olive mill allows the company to directly oversee the main stages of olive processing and maintain a short supply chain.

Our commitment is to preserve high quality standards, even when market prices fluctuate significantly. Throughout the 2026/2027 olive oil season, this commitment remains central to meeting market challenges and preparing for future harvests.

The true value of extra virgin olive oil cannot be measured solely by wholesale market prices. Its origin, cultivation methods, quality and the work involved in producing it are equally important.