Crete's Olive Farmers Struggle to Make Ends Meet at Current Prices

Olive oil production on the Greek island of Crete is not as lucrative as consumers might think. According to a calculation by Creta Live, an olive grower with 1,000 trees in a rain-fed organic grove would lose money at current prices.

The calculation takes into account the natural phenomenon of alternate bearing, or biennial bearing, where olive trees produce more heavily one year and less the next. In this case, the two-year average production is approximately 5,777.8 kg of olive oil per year.

The estimated annual costs for producing this amount of oil are €23,961, which works out to about €23.96 per tree. This includes harvesting (€5,600), winter and summer pruning (€7,000), weed control (€800), manure (€3,300), potassium fertilizer (€3,240), flowering sprays (€207.50), copper treatment (€211.25), kaolin for olive fruit fly control (€780), fuel and vehicle costs (€800), and olive mill processing (€2,022).

The calculation shows that at an average annual production of 5,777.8 kg and a selling price of €3.50 per kilogram, the farmer would lose approximately €3,739 per year. To break even, the oil would need to sell for around €4.15 per kilogram.