Andalusia's Olive Oil Boom Drives Prices Down by 18%

Spain's olive oil output is set to rebound in the upcoming 2026-27 season, driven by significant gains in production in Andalusia, the country's top-growing region. The improvement in supply has led to a decline in producer prices for extra-virgin olive oil, which have dropped to approximately €3.4 per kilogram from €4.2 a year ago.

This marks a decrease of more than 18% compared to the same period last year and is less than half the peak prices reached during the drought-stricken harvests in 2023 and 2024, when prices soared due to scarcity. The surge in production is attributed to favorable weather conditions, which have enabled farmers to meet growing demand.

The rebound in olive oil output comes as a welcome relief for the industry, which has been struggling with low yields and high prices in recent years. However, experts caution that the market remains volatile, and producers must remain vigilant to maintain profitability.