An aerial vision of agricultural workers who wash the grapes, with a mixture of water, olive oil and potassium carbonate called “Posata” so that they look brighter and protect them from the burning rays of the sun in the plain of Menemen of Izmir, Turkiye, on August 27, 2024.
Anadolu | Anadolu | Getty images
The Executive Director of Deleo in Spain, the largest olive oil producer in the world, says a bumper harvest and an improvement in the feelings of the market that the industry is recovering from one of its most difficult moments in history.
A substantial olive harvest, especially in Spain, has helped restore confidence in the sector and has led to a pronounced fall in the prices of virgin and extra virgin oils in supermarkets.
It occurs after two consecutive seasons of poor yields resulted in an extraordinary period of turbulence throughout the olive oil value chain.
A perfect storm of extreme weather of climate change, high rates of interest and robust inflation that culminated in a vertiginous price stop of liquid fat last year, one that surprised consumers and the veterans of the industry equally.
However, Deleo CEO, Cristóbal Valdés, said “an important change” has been since then.
“What was once one of the most challenging periods in our history, marked by a shortage of raw materials, a high volatility of prices and the decrease in consumption, is now giving way to a more normalized and promising market panorama,” Valdés told CNBC by email.
Deoleo, the manufacturer of domestic olive oil brands such as Bertolli and Carbonell, said he hopes that an environment of more contained raw material prices persist during the second half of 2025.
“The significant rebound in the olive oil harvest, particularly in Spain, is already translating into more stable supply conditions, and this is having a direct impact on prices at origin,” said Valdés.
“While some volatility can persist, we believe that the trend towards normalization will remain,” he added.
‘Cautiously optimistic’
Most of the world supply of olive oil comes from the Mediterranean, with countries in southern Europe such as Spain, Italy and Greece among the world’s world producers in the merchandise.
Spain, in particular, is the largest producer of olive oil in the European Union and a global reference for prices.
The Ministry of Agriculture, Fisheries and Food of Spain said that the country produced 1.41 million metric tons of olive oil in the year of culture 2024/2025. The yield, which was slightly lower than the forecast, marked an increase of approximately 65% of 855,600 metric tons one year earlier.
A person holds a bottle of olive oil on June 21, 2024 in Barcelona, Catalonia, Spain.
Europa Press News | Europa Press | Getty images
The Deoleo CEO said the Spanish harvest in the bumper caused a 50% drop in raw material prices, stimulated demand and allowed the company to reduce olive oil prices on the shelf.
“Therefore, our perspective is cautiously optimistic: we anticipate a more balanced market, where the responsible price and focus on value will be key to maintaining growth and guaranteeing the health of the long -term category,” Valdés said.
Deoleo CEO also said that the most favorable market conditions had allowed the company to double its investment in advertising and promotion to 10 million euros ($ 11.63 million).
Speaking to CNBC before the United States and the EU agreed a tariff rate of 15% for most EU assets from August 1, Valdés said the company intended to increase its communication, marketing and consumer participation efforts to ensure that olive oil remains a daily basic element.
