Spain reinforces its global leadership in olive oil with a record harvest and a solid trade balance

 

The comprehensive analysis presented in Madrid underlines that Spain's production of 1,4 million tons represents the 67% of European production and a notable 40% of the world share expected for this season. Global production is projected at 3,5 million tons, the highest figure recorded in the historical series, with Spain maintaining its absolute leadership.

 

The Spanish Olive Oil Structure: Giant in Area and Modernization

 

Spain not only leads in production, but also in surface area, hosting 2,7 million hectares of olive groves, out of a total of 11,7 million spread across 58 countries. The study highlights the social and productive character of this crop, fundamental for thousands of rural municipalities and with nearly 400.000 owners.

 

The sector faces a duality: 69% of the area corresponds to traditional dryland olive groves on slopes, which face higher production costs (close to 5 euros per kilo) and compromised profitability, so the CAP 2023–2027 It has incorporated specific aid to guarantee its continuity. At the same time, modernization is progressing decisively with super-intensive olive groves, which cover more than 35.000 hectares in Andalusia and 15.000 in Extremadura, where mechanization and technology allow for production levels of 10.000 to 12.000 kg per hectare with significantly low collection costs.

 

In the industrial sector, the infrastructure is extensive, with 1.835 olive oil mills and 1.784 packaging plants in 2023. Furthermore, the sector is committed to quality, as evidenced by its 30 Protected Designations of Origin (PDOs), 2 Protected Geographical Indications (PGIs), and the 284.000 hectares of organic olive groves, one of the largest in the world in this crop.

 

Falling Prices and Strength of Foreign Trade

 

At the national market level, the sector has gone from exceptionally high prices in the 2022/23 and 2023/24 seasons to a 46,7% drop in Extra Virgin Olive Oil (EVOO), which currently hovers around 420 euros per 100 kilos. This downward trend, which also affects other categories, is partly due to the recovery in production and the increase in stock expected end.

 

Despite price volatility, the Spanish foreign trade maintains a pattern of unmatched strengthWith average exports of 919.300 tons over the last five seasons, the value of foreign sales could exceed 5.000 millones de euroswith coverage rates exceeding 800%. Italy, the United States, France, Portugal, and the United Kingdom are the main destinations.

 

However, the report identifies a main structural weakness: more than 60% of exports are made in bulk, especially to Italy, which implies that the added value of packaging and re-export It is generated outside of Spain.

 

The outlook for the sector in the medium term continues to be positivewith a production forecast of 1,37 million tons for the 2025/26 season. The study concludes that Spain possesses solid foundation To remain the global leader: "dominant production capacity, an extensive industrial network, a strong export weight, expanding global consumption and a modernization of the olive grove that is advancing both in efficiency and sustainability."