Italy calls at the Council of Ministers for crisis reserve funds for olive oil

The Italian delegation called on the Council of Ministers for the EU to activate the crisis reserve in the olive oil sector as the new 2026/27 marketing year began on 1 October, against a backdrop of a sharp fall in producer prices.

According to the case presented to the Council, the olive oil sector is going through a period of growing difficulty, marked by persistent downward pressure on producer prices, rising stocks and production costs that remain high.

It adds that, following the exceptionally high levels reached in 2023-2024, Italian extra virgin olive oil (EVOO) prices have fallen sharply since the final months of 2025, a trend that has intensified throughout 2026. In some major producing areas of the country, the fall exceeds 50%.

On this point, it also notes that "operators report that prices are not sufficiently profitable and that there are growing liquidity problems, in a context that is also affected by higher energy, fuel and fertiliser costs as a result of the crisis in the Middle East."

It further stresses that "the fall in prices is accompanied by a significant increase in stocks. In Italy, stocks recorded in July 2026 stood at around 233,000 tonnes, compared with approximately 162,000 tonnes in July 2025, an increase of more than 40%."

At European Union level, stocks at the end of the 2025/26 marketing year (30 September) are estimated at around 420,000 tonnes, up on previous seasons.

This build-up, according to the Italian delegation, "is an indicator of the market's difficulty in absorbing supply and is a further factor putting pressure on prices. The critical situation is becoming urgent with the imminent start of the 2026/27 olive oil season."

Indeed, they add, "the new crop will come onto a market in which substantial unsold volumes and very low prices persist."

In this respect, it points out that "the additional increase in supply could accentuate the downward pressure and squeeze olive growing businesses' margins still further, precisely at the stage when operators have to meet the costs of the new harvest."

In the light of this situation, Italy is requesting "that European Union agricultural reserve funds be activated to finance exceptional measures aimed at countering the serious market disturbances and providing rapid support to operators in the sector."