The price of olive oil in Spain has fallen dramatically and is now almost 44% below last year’s level. This remarkable decline raises questions and leads to serious accusations from olive farmers.
Historic Price Decline: Olive Oil at January 2023 Levels
Current Consumer Price Index (CPI) data, released on Friday by the National Institute of Statistics (INE), shows a continuous downward trend. In May, the price of olive oil fell by another 4.8%, recording an impressive 43.8% decrease compared to May of the previous year. Cumulatively over the first five months of 2025, the price drop is already 27.9%. This development has returned the price of olive oil to a level last seen in January 2023.
Farmers Raise Alarm: Accusations of Price Fixing
While consumers might benefit from falling prices, olive farmers find themselves in a difficult situation. They vehemently denounce that illegal price fixing is occurring among olive oil buyers to artificially drive down the price. These accusations have led the Coordination of Farmers’ and Ranchers’ Organizations (COAG) to file an official complaint with the National Commission for Markets and Competition (CNMC). The goal is a comprehensive investigation into practices in the olive oil market.
Studies Confirm Discrepancy: Fair Price Significantly Higher
The COAG’s complaint is based on well-founded scientific findings. A joint study by the Universities of Jaén and Córdoba, as well as the Institute for Agricultural and Fisheries Research and Training of the Junta de Andalucía (Ifapa), comes to a clear conclusion: Based on actual production costs, the price of olive oil in the 2024-2025 campaign should be between 5.55 and 6.14 euros per kilo. This stands in strong contrast to the currently paid 3.5 euros, which highlights the financial burdens on olive farmers.
Olive Oil in Contrast to Other Edible Fats
The behavior of olive oil prices stands in stark contrast to the development of other common edible fats. During the same period, butter recorded a price increase of 5.2% in May, and other edible oils even increased by 18.6%. This underscores the peculiarity and potential anomalies in the Spanish olive oil market.
