Bumper Olive Harvest Predicted in Spain

Spain's olive oil industry is expecting a bumper harvest this year, with forecasters predicting one million six hundred thousand tons of olives will be harvested. This represents a three-hundred-thousand-ton increase from last year's yield.

The good weather in January and February has been beneficial for the trees' flowering, but the key to reaching this target lies in October's rainfall. If it doesn't rain this month, producers fear that they won't be able to meet their forecast.

Many farmers are already expressing concerns about low prices, which could drop as low as 3-3.50 euros per liter. However, this represents a major imbalance with production costs, with Paco González from Aceites Guadalimar stating that 'three out of every four farmers are losing money due to this mismatch'.

The high costs of hiring staff, diesel, fertilizers, electricity, and machinery make oil production expensive for processors. In fact, three years ago, the drought led to a harvest of only one million tons, causing prices to skyrocket to 10 euros per liter. Although there have been larger harvests since then, the price has remained high due to leftover stock from previous years.

Catalan producers are also expecting a good yield, with Olis Macià from Artesa de Segre stating that irrigated fields will see significant production increases due to the lack of rain all summer long. The president of DOP Siurana, Pere Albà, notes that it's early to make forecasts but expects mills to begin opening in mid-October to produce unfiltered oil at a higher price.