Spain reaffirms its global hegemony in olive oil with a harvest of 1,4 million tons and a historic export boost

 

El Sector Report 2025 on olive oilThe report, prepared by Agrifood Comunicación and AgroBank, in collaboration with the Olive Oil World Congress, paints a picture of structural strength for the Spanish sector. After two seasons of short harvests, the forecast of $1,4$ millions of tons This places Spain at the forefront of global production, contributing the $67\; \%$ of European production and the $40\; \%$ of the world.

 

Productive Leadership and Surface

 

On a global scale, total production is projected to be $3,5$ millions of tons for the 2024/25 season, the highest figure recorded to date. Spain stands out not only for its production volume, but also for being the country with the larger olive grove area, with $2,7$ million hectares of the $11,7$ millions that extend across $58$ countries

 

La European Union Overall, this position is underscored by a highly positive trade balance, which closed the 2023/24 campaign with a record surplus of $4.390$ millions of eurosGlobal consumption remains stable at around $3$ millions of tons, with an expansion of demand outside the EU.

 

Social Structure and Modernization of the Olive Grove

 

The olive grove is a key social cultivation in rural Spain, encompassing approximately $400.000$ owners. Although the $69\; \%$ of the surface is dryland and faces higher production costs (close to $5$ euros per kilo of oil) and lower profitability, modernization is progressing. The most notable are the more than $35.000$ hectares of super-intensive olive groves in Andalusia and $15.000$ in Extremadura. This high-density model allows for production of $10.000$ a $12.000$ kg per hectare and reduces the collection cost to $0,03$ $0,04$ euros per kilo thanks to mechanization.

 

The report warns that the Traditional dryland olive groves on slopes They face significant structural challenges, although the CAP 2023-2027 It includes specific aid to guarantee the continuity of these farms in areas vulnerable to depopulation.

 

La industrial capacity Spain is vast, with $1.835$ olive oil mills, $1.784$ packaging plants and a firm commitment to quality, evidenced by the 30 Protected Designations of Origin (PDOs) and $284.000$ hectares of organic olive groves, one of the largest areas globally.

 

Prices and Export Strength

 

In the domestic market, prices, which reached record highs in previous seasons, have experienced a significant dropExtra Virgin Olive Oil (EVOO) is around $420$ euros per $100$ kilos, which represents a decrease of $46,7\%$ compared to the previous campaign.

 

Despite this price fluctuation, the Spanish foreign trade maintains its pattern of great strengthThe average export volume for the last five seasons amounts to $919.300$ tonnes, with a value that can exceed $5.000$ millions of eurosItaly, the United States, France, Portugal, and the United Kingdom are the main destination markets. However, the report points out as a weakness that more than $60\; \%$ exports are carried out in bulkThis trend reduces the added value that could be generated by packaging and re-exporting from Spain.

 

At a situational level, although the 2024/25 campaign began with low stocks ($296.000$ tons), the expected production recovery projects an increase in ending stock of up to $423.000$ tonnes, an $30\; \%$ more than in the previous period.

 

Long-term prospects are positive, with a forecast of $1,37$ millions of tons for the 2025/26 campaign. The report concludes that: "Spain maintains a solid foundation To continue leading the global olive oil market: dominant production capacity, an extensive industrial network, a strong export presence, expanding global consumption, and a modernization of the olive grove which is making progress in both efficiency and sustainability."