Spanish Olive Oil Producers Struggle with Rising Costs and Low Prices

Olive growers in Spain are facing significant challenges due to rising production costs and low olive oil prices. According to a study by the Spanish Association of Olive-Growing Municipalities (AEMO), average olive cultivation costs have increased by around 57% over the past six years, reaching €5.31 per kilogram of oil produced. This is putting immense pressure on farmers' margins.

The demand for olive oil remains strong, with Spanish shipments reaching 135.3 thousand tons in July, nearly 20 thousand tons above the five-year average for the month. However, this growth is not translating into better profitability for growers due to weak bargaining positions within the supply chain.

Cooperativas Agro-alimentarias de Andalucía, representing over 342,000 cooperative members in Andalusia, has called on the Spanish government and the EU to strengthen measures supporting the sector. The organization is seeking legislative reforms, a stronger role for cooperatives, and greater direct access to domestic and international markets.