Aerial view of agricultural workers with a mixture of water, olive oil and potassium carbonate called “posta”, making them look brighter and protecting them from the sun burning sun in the Menemen Plin in Turkiye on August 27, 2024.
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The CEO of Deoleo, Spain’s largest olive oil producer, said bumper harvests and improved market sentiment showed that the industry is from One of the toughest moments ever.
A large amount of olive harvest, especially in Spain, helps to restore confidence in the industry and leads to a significant drop in the prices of extra virgin and virgin olive oil in supermarkets.
This is the turbulence that leads to the entire olive oil value chain after two consecutive seasons of poorer seasons.
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Deoleo CEO Cristóbal Valdés said the “significant shift” has been underway.
“Once one of the most challenging times in our history – characterized by scarcity of raw materials, high price volatility and decline in consumption are now giving way to a more normal and promising market landscape,” Valdés told CNBC via email.
Deoleo, a manufacturer of household olive oil brands such as Bertolli and Carbonell, expects to have a more raw material price environment in the second half of 2025.
“A significant rebound in the olive oil harvest (especially in Spain) has translated into more stable supply conditions, which directly affects the origin price,” Valdes said.
He added: “While some volatility may persist, we believe the trend of imposing normalization will be achieved.”
“Careful optimistic”
Most of the world’s olive oil supply comes from southern European countries such as the Mediterranean, Spain, Italy and Greece, which are the world’s leading commodity producers.
Spain, especially, is the largest olive oil producer in the EU and a reference for global prices.
Ministry of Agriculture, Ministry of Fisheries and Food explain The country produces 1.41 million tons of olive oil annually in the 2024/2025 crop. slightly lower than forecastThis is about 65% higher than the 855,600 metric tons in the same period last year.
A man held a bottle of olive oil on June 21, 2024 in Barcelona, Catalonia, Spain.
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The Spanish harvest of bumpers has driven raw material prices by 50%, stimulating demand and allowing the company to lower the price of olive oil on the shelves, said Deoleo’s CEO.
“We therefore have a cautiously optimistic outlook: We expect the market to be more balanced, where responsible pricing and focus on value will be key to sustaining growth and ensuring long-term categories health,” Valdes said.
Deoleo’s CEO also said that the more favorable market conditions have doubled the company’s investment in advertising and promotions to €10 million ($11.63 million).
In the United States and the EU, the tariff rate for most EU goods is 15% from August 1, Valdés explain The company aims to increase its communication, marketing and consumer engagement to ensure that olive oil remains a daily staple food.
