SA Olive Producers Must Focus on Quality Amid Price Decline

South African olive oil producers face significant challenges as global supplies recover and international prices plummet. According to Richard Allen, chairperson of the SA Olive Association (SA Olive), world olive oil production reached a record 3.57 million tons in 2024/25, down only 4% from the previous year's estimate.

Allen noted that producer prices in Spain, an important benchmark for the international olive oil industry, have dropped sharply to around €4.1/kg (R76.5/kg), compared to around €9/kg (R168/kg) in January and February 2024.

This decline has led to a resurgence of cheaper imported oils on local shelves, making it difficult for South African producers to compete. Allen warned that these price levels are likely to stay, with import parity potentially trading within a range of roughly R70/ℓ to R100/ℓ.