EU olive oil supply to swell as Spanish crop recovers from drought

Olive oil supply in Europe is set to rise sharply in the year ahead as top producer Spain recovers from drought, though it was unclear if households hurt by record prices will revert to the Mediterranean specialty, the European Commission has said.

European Union production of olive oil is forecast to reach 2 million metric tons in 2024/2025, up 31% from last season and 9% above the five-year average, the Commission said in an agricultural outlook report on Tuesday.

A steep increase in Spanish output, along with a rise in Greece and Portugal, should outweigh a less favorable crop year in Italy, it said.

Spain's 2024-2025 olive oil production is projected to rise 48% to 1.26 million tons, according to a farm ministry forecast released last week. Spring rain boosted early growth of olives, though weather in the coming weeks will be crucial for the final harvest...