After two years of constant increase, which resulted in a significant drop in sales, the price of olive oil began to fall at the end of 2024. Despite being a relief for families, the reduction could have serious consequences for producers, who fear a “catastrophic” drop in prices.
Olive oil, often called “liquid gold” or “green gold,” has become a luxury item due to soaring prices in recent years. In 2022, it was possible to buy a liter of extra virgin olive oil for around 4 euros. However, in 2024, the price almost reached 10 euros, according to the Agro-Food Price Observatory. At the end of the year, thanks to a good harvest in olive groves, prices began to fall, but producers fear the impact of this trend.
“Olive growers are worried about price stabilization,” says Francisco Pavão, president of the Association of Producers in Integrated Production of Trás-os-Montes and Alto Douro (APPITAD) and vice-president of CAP. “The most pessimistic forecasts point to a 50% drop in prices, which would be unsustainable for producers. We cannot return to 2021 values, which were below the profitability limit.”
According to , in Alentejo, where around 85% of Portuguese olive oil is produced, the drop in prices is generating concern. Hélder Transmontano, general director of the Moura and Barrancos Agricultural Cooperative (CAMB), warns: “If the price continues to fall, it will be very worrying. It can lead to the abandonment of olive groves, especially traditional dryland ones.”
Despite the slight drop in consumer prices, olive oil still costs between 7 and 9 euros per liter, values that many consider high. “We will hardly return to the prices we had before the pandemic”, adds Hélder Transmontano.
The drop in prices in Portugal is related to the national olive oil campaign, which is about to end. In Spain, the world’s largest producer, the harvest ends later and will play a decisive role in defining prices for 2025.
The drastic increase in olive oil prices began in 2023, after very low production between the end of 2022 and the beginning of 2023. According to the Agro-Food Price Observatory, the average price of a liter of extra virgin olive oil rose from 4.33 euros in beginning of 2022 to 9.78 euros in March 2024, reaching double in just over two years.
Although prices began to fall in the summer of 2024, in December they still remained high, with a liter costing 8.69 euros. For many families, olive oil has gone from being a regular purchase to being considered a luxury, as producers face the challenge of balancing costs and income in an uncertain market.
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