Olive oil prices fall to their lowest since 2021 as Spain's harvest recovers
Spanish extra virgin olive oil now sells at origin for about €3.17 a kilo, around 65% below its January 2024 peak, according to European Commission data. A large 2026/27 harvest pushed prices down, and Spain has ordered mills to hold back 12% of output.
Olive oil prices have fallen sharply and, at origin in Spain, are now at their lowest level since late 2021. Spanish extra virgin olive oil averaged €316.51 per 100 kg in the last week of October 2026, down from €903.41 at the January 2024 peak, according to European Commission price data. Shop prices have fallen less, and Spain is now withholding part of its new harvest to stop prices sliding further.
How much have olive oil prices fallen?
At origin, by roughly two-thirds from the peak. The European Commission publishes weekly olive oil prices reported by member states on its olive oil price monitoring page. Its series for Spain's national average extra virgin price shows the climb and the fall clearly.
| Week beginning | € per 100 kg | About € per kg |
|---|---|---|
| 3 January 2022 | 336.12 | 3.36 |
| 2 January 2023 | 537.44 | 5.37 |
| 15 January 2024 (peak) | 903.41 | 9.03 |
| 20 October 2025 | 423.66 | 4.24 |
| 26 October 2026 | 316.51 | 3.17 |
The late-October 2026 price was the lowest in the Commission's Spanish series since November 2021. These are bulk prices paid to producers and mills, not supermarket prices, which include bottling, transport, retail margins and tax.
Why did olive oil become so expensive?
Because Spain, the world's largest producer, had two very poor harvests in a row. Drought and heatwaves hit the 2022/23 and 2023/24 crops, ESM Magazine reported, and many households switched to sunflower oil.
The Commission's olive oil dashboard, updated on 30 September 2026, shows the scale of the shortfall. Spain produced 666,000 tonnes in 2022/23 and 855,000 tonnes in 2023/24, against 1,491,000 tonnes in 2021/22. Production recovered to 1,421,000 tonnes in 2024/25 and an estimated 1,302,000 tonnes in 2025/26.
Why are prices falling now?
Mainly because another large Spanish harvest is arriving. Spain's agriculture ministry expects about 1.6 million tonnes of olive oil in 2026/27, 23% more than the previous season and its fourth-best harvest on record, according to ESM Magazine. Mild temperatures and spring rain helped the crop.
- World production in 2025/26 is forecast at about 3.43 million tonnes, 5% lower than in 2024/25 but 11% above the five-year average (European Commission).
- EU production in 2025/26 is forecast 9% above the five-year average.
- The Commission's monthly data show Spain's extra virgin price at €351.2 per 100 kg in August 2026, 9% lower than a year earlier.
- EU olive oil exports were forecast to rise 6% in 2025/26 to 794,000 tonnes, Olive Oil Times reported, citing the Commission, with EU shipments to China doubling in the first part of the season.
Why is Spain holding back 12% of its olive oil?
To stop prices falling below what farmers say it costs to produce oil. Under an order that took effect on 6 November 2026, producers must store 12% of their 2026/27 production until 30 September 2027, removing about 188,000 tonnes from the market, ESM Magazine reported. The ministry said the aim was to regulate supply and stabilise the market, using the withdrawal mechanism in EU Regulation 1308/2013.
Growers' groups had warned before the decision that prices were below production costs. Cooperatives and the farm unions ASAJA, COAG and UPA said on 8 October that extra virgin oil was averaging about €3.30 per kilo, and an association of olive-growing towns put the rise in production costs since 2021 at 57%, Euro Weekly News reported.
Will olive oil get cheaper in the shops?
It already has, but more slowly than at origin. In Spain, Mercadona's own-brand extra virgin oil cost €4.35 a litre and Carrefour's €4.34 in October 2026, according to Euro Weekly News, and by early September Carrefour had cut its own-label litre by 24 cents and Dia by 15 cents. That leaves a gap of around €1.50 a litre between shelf prices and the origin price, the same report noted.
The withdrawal order is meant to support origin prices, so how much further shop prices fall will depend on how the market absorbs the new harvest. Olive oil remains central to the eating pattern explained in our article on what the science says about the Mediterranean diet. For another food commodity shaken by bad harvests, see our explainer on cocoa prices and chocolate.
Frequently asked questions
What is the price of olive oil per kilo in Spain now?
European Commission data put Spain's national average origin price for extra virgin olive oil at €316.51 per 100 kg, or about €3.17 a kilo, in the week beginning 26 October 2026. That is the lowest level in the series since November 2021. It is a bulk price paid at origin, not a supermarket price.
What was the highest olive oil price?
In the Commission's weekly series for Spain, extra virgin olive oil peaked at €903.41 per 100 kg, about €9 a kilo, in the week beginning 15 January 2024. That followed two drought-hit harvests in 2022/23 and 2023/24, when Spanish output fell to 666,000 and 855,000 tonnes respectively.
Why does Spain matter so much for olive oil prices?
Spain is the world's largest producer. The Commission's figures show Spanish output of 1.42 million tonnes in 2024/25, when world production was about 3.6 million tonnes. When Spain's harvest fails, global supply tightens quickly; when it recovers, prices fall across Europe and in export markets.
What does Spain's 12% olive oil withdrawal mean?
From 6 November 2026, Spanish producers must keep 12% of their 2026/27 production in storage until 30 September 2027, taking about 188,000 tonnes off the market. The government says it aims to stabilise the market and protect farmers' incomes. The order applies under the EU's market withdrawal rules and follows warnings from growers that prices had fallen below production costs.
Sources
- European Commission — Olive oil price monitoring, weekly price developments (updated 9 November 2026)
- European Commission, DG AGRI — Dashboard: olive oil (30 September 2026)
- ESM Magazine — Spain to hold back 12% of olive oil production after bumper harvest (9 November 2026)
- Euro Weekly News — Spain's olive oil prices approach €3 a kilo (22 October 2026)
- Olive Oil Times — Trade recovery tests Europe's olive oil producers as prices fall (9 July 2026)
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