Demand for olive oil is expected to continue picking up, supported by falling prices, the Food and Agriculture Organization (FAO) said Thursday, anticipating a “possible” record level of trade in the upcoming season.
After a period of drought that had reduced supply and pushed prices to highs in early 2024, production has rebounded and is expected to hold steady year-on-year for the 2025-26 season at around 3.4 million tonnes, the United Nations agency said.
Wholesale prices in Spain, the world’s largest producer (about 40% of the total), have fallen by more than half compared with the January 2024 peak, and by September were 13% below the five-year average. A similar trend was seen in Greece. In contrast, prices remain fairly high in Italy, where the drought continued into summer 2024, the FAO highlighted in its semi-annual report on global food outlooks.
“Consumption and world trade are expected to continue expanding,” the FAO said, even though consumption is not expected to recover to pre-2022 levels yet.
The international trade in olive oil is projected to reach about 1.3 million tonnes, “potentially a historic record”.
