The Cretan olive oil market is experiencing unprecedented price dynamics in early 2025, following a sharp decline that began in late 2024. Producer prices have fallen from €7.50 per kilogram in November to the current €4.80, representing a dramatic shift from the previous year’s peak of nearly €10.00 per kilogram, creating significant tension within the industry.
Market Paradox
Despite the dramatic decrease in producer prices, consumers continue to face high retail costs, with extra virgin olive oil ranging from €11.50 to €14.00 per liter in supermarkets. This stark disparity has led to mounting frustration among producers across Greece, particularly in major olive-growing regions like Crete, Laconia, and Messinia, who are now receiving less than half of what they earned last year while seeing minimal impact on consumer prices.
The traditional 17-liter tin of extra virgin olive oil, a staple in Greek households, now sells for €100-120, down from last year’s peak of €160. However, this reduction doesn’t reflect the full extent of the price drop at the producer level, where farmers are receiving just €4.50-5.50 per kilogram.
Global Market Forces
The price decline reflects broader Mediterranean market dynamics, with global olive oil production expected to increase by 32% to 3.375 million tons in 2024/25. Spain’s better-than-expected harvest has particularly influenced market prices, contributing to the downward pressure on producer prices across the region.
Production Challenges
While initial forecasts for the 2024/25 harvest were optimistic, prolonged drought conditions have forced significant downward revisions of production estimates across Crete:
- Western Crete’s Chania region, while performing relatively better thanks to September rainfall, expects only 17,000 tons compared to last year’s 28,000 tons
- Eastern Crete, particularly around Sitia, faces severe challenges after almost a year without significant rainfall
- Most areas across the island are experiencing a 60-70% reduction in production from initial estimates
Industry Response
Agricultural associations across Greece are protesting the current market conditions, accusing middlemen and traders of excessive profit-taking at the expense of both producers and consumers. The Agricultural Association of Chandrinos has called for direct action, urging farmers to take their tractors to the streets in protest of the current pricing structure.
“This is pure profiteering,” states Michalis Kabitakis, vice-chair of the Association of Agricultural Cooperative Organizations and Enterprises of Greece. “There is no olive oil stock this year to justify the high prices.“
Looking Ahead
Market experts suggest that retail prices may begin to decrease by spring 2025 as older, more expensive inventory clears from the supply chain. However, the longer-term outlook remains uncertain, particularly given the ongoing challenges of water scarcity affecting production across the Mediterranean region.
The situation highlights the broader challenges facing the Cretan olive oil sector, which remains a crucial component of the Greek agricultural economy. As the industry grapples with these pricing disparities, both producers and consumer organizations are calling for greater transparency and fairness in the market’s pricing mechanisms.
Published on: February 18th, 2025
Further reading: Greek Olive Oil: The Ultimate Guide to Crete’s Liquid Gold
