The specific weather conditions between September and October divided Italy into two. The North faced red alerts, storms, and heavy rains, while the South experienced summer-like temperatures and drought. This situation has significantly impacted agriculture, particularly the olive oil campaign, which is seeing a notable decrease compared to last year. In Puglia, which produces more than half of Italy’s olive oil, a 30% drop is estimated. Internationally, however, Spain is preparing for a successful campaign, with promising prospects also for Tunisia, Greece, and Turkey.
We discussed these dynamics with Nicola Pantaleo, owner of a Puglia region olive oil company expanding to the international markets by focusing on quality products. The company cultivates over 150 hectares of intensive olive groves, producing DOP and IGP extra virgin olive oil. This year, however, drought has caused a 40-50% drop in production. Irrigation continues where possible, but rainfall would greatly improve the situation.
Despite the challenges, the harvest quality is good, as high temperatures have reduced the olive fly’s lifecycle and other pests. However, organic farming faces greater challenges since pesticides cannot be used. Pantaleo predicts a widening gap between Italian and other European oil prices, as other countries’ campaigns are more promising.
Globally, Spain is recovering after years of drought, with an estimated production of 1.5 million tons. Portugal, Greece, Tunisia, Morocco, and Turkey also foresee good campaigns. In Italy, however, the lack of stock is keeping prices high. Large-scale retailers are requesting price cuts, but current conditions do not allow for significant reductions.
For 2025, Pantaleo will focus on Greece for EU extra vergin oil, but will also source from Portugal and Spain. Among the new initiatives, the company will launch the “Olio di Puglia Biologico” IGP (Indicazione Geografica Protetta, means Protected Geographical Indication), the first regional brand of this type. The IGP offers a competitive quality-price ratio and aims to grow in the market.
