Decline in production increases olive oil price by up to 11%, making exports difficult

2025-12-03 07:06:28, Ekonomi CNA

Decline in production increases olive oil price by up to 11%, making exports

For many areas of the country, this year the amount of olives produced is up to 50% less than last year.

Farmers and processors claim that the decline in production has been influenced by climatic conditions, especially the drought of the summer months and the lack of machinery for working in the olive groves.

The decline in olive production has contributed to the increase in the price of olive oil for collection, making the export competitiveness situation more difficult.

Agron Çakalli, head of the Agricultural Federation in Elbasan, said that oil is being collected from farmers in the Elbasan and Gramsh areas at a price of 700 lek per liter.

Last year, the average price of olive oil collection ranged from 620 to 630 lek per liter, below the 650 lek threshold. This year, the price has reached 700 lek per liter or even higher, mainly due to the decline in production. The price of olive oil for collection has increased by up to 11%.

Processors are concerned that the price of olive oil as a raw material continues to remain higher than in other olive-producing countries. According to them, in Greece and Spain, olive oil for collection is being sold by the farmer at a price of less than 5 euros per liter.

"We used to have stable trade with Greece, but for two years now, olive oil has not been exported there, as the price in the Greek market is lower than in our country. Even Italian buyers are no longer coming, because the price of oil in Italy is cheaper," Çakalli claims.

Aldo Jolla, a processor and collector in the Dumre area, also said that this year too, the price requested by farmers is uncompetitive for export.

According to him, farmers are asking for oil at a price of 600 to 650 lek per liter, while Italian wholesalers are asking for oil at a price of up to 450 lek per liter. In this area, the asking price is almost at last year's levels.

"The price of olive oil continues to remain high compared to the price of olive oil produced in Europe. Prices range from 4.3 euros per liter in Spain to 4.5 euros per liter in Greece."

"The Albanian farmer cannot compete with these prices, as the cost of production for him remains high. Meanwhile, we as collectors cannot buy oil at this price, as we cannot compete in exports. The lack of exports risks increasing the farmers' oil stock at home."

Processors list a number of reasons why domestic production fails to compete with its neighbors.

Including the high production costs that are not only due to high wages for employees, but also from low mechanization that does not encourage increased yield, the lack of subsidies for each liter of oil produced by the farmer, such as in Greece where the state subsidizes the farmer 1 euro per liter, and from the high level of informality of sales in the country./ Monitor.al