Explore the ongoing crisis facing Greek olive oil, with thousands of tons unsold. Discover the challenges, market dynamics, and solutions proposed to enhance its global presence.
Greek olive oil, a vital agricultural product and cornerstone of the nation’s primary production sector, is currently facing a prolonged crisis that extends beyond any single region, impacting virtually all olive-growing areas in Greece. From Crete and the Peloponnese to Central Greece and the Ionian Islands, vast quantities of olive oil remain unsold in cooperative warehouses. Meanwhile, commercial activity is lagging significantly, and in many cases, the prices being offered fail to even cover production costs.
Despite the ongoing recognition of Greek extra virgin olive oil’s quality on an international level, producers are witnessing a decline in the value of their product amid a climate of pervasive uncertainty. Limited demand, reliance on bulk exports, shifting international trade dynamics, and the absence of a cohesive national strategy for marketing and promoting the product present formidable challenges, testing the resilience of the sector as a whole.
In discussions with agricultural cooperatives, it became apparent that the issue is increasingly critical in regions where olive cultivation serves as the primary source of income and the backbone of local economies. The lack of liquidity, difficulties in moving existing stockpiles, and the downward pressure on prices are generating serious concern among producers, who are calling for significant interventions and a strategy to enable Greek olive oil to achieve its rightful value in international markets.
Olive Oil: A Stagnant Market with Limited Trader Interest
Eleftherios Vardoulakis, president of the Agricultural Olive Oil Cooperative of Palaiochora in Crete, noted to Parapolitika that the market is effectively at a standstill, with considerable quantities of olive oil lingering in cooperative warehouses due to insufficient interest from traders. He explains that the Greek market remains heavily reliant on bulk exports and the decisions made by major commercial buyers overseas, a dynamic that greatly influences demand and price formation. Additionally, he highlights the increasing presence of olive oil from third countries in the European market as a pivotal factor. “The situation is largely dictated by events in the Spanish market, while the entry of Tunisian olive oil has significantly changed the overall market landscape. We currently sell our product directly to wholesale traders, but there is a lack of demand. New markets outside Europe need to be opened to stimulate greater demand for Greek olive oil,” he explains.
The Greek market continues to depend heavily on bulk exports and the decisions of major commercial buyers abroad — a dynamic that directly influences demand and price formation. — Eleftherios Vardoulakis, President of the Agricultural Olive Oil Cooperative of Palaiochora, Crete
For decades, a considerable portion of Greek production has been exported in bulk, primarily to Italy, where it is packaged and sold in international markets under foreign brands. This long-standing model has created a dependency on the demands and preferences of large foreign buyers. When demand contracts, or when these companies seek alternative sources — such as olive oil from third countries — the pressure is immediately felt by Greek producers, forcing them to either sell at lower prices or let their product sit unsold in warehouses.
In a similar vein, Manolis Karpadakis, vice president of the Crete Exporters Association and certified olive oil sommelier at Terra Creta, spoke to Parapolitika about how the current market state is being affected by international economic and geopolitical factors dampening demand for Greek olive oil, particularly in export markets. “There has been a slight decrease in demand for Greek olive oil, especially abroad, attributed to geopolitical developments and a prevailing uncertainty among European consumers. Rising transportation costs and longer delivery times are impacting distribution network decisions and, consequently, demand,” he notes.
He emphasizes that a long-standing structural problem within the Greek market is its reliance on bulk exports, which limits the added value that remains domestically and exposes producers to fluctuations in international markets. “Most Greek olive oil is exported in bulk, primarily to Italy. As a result, we have not yet developed markets capable of absorbing the entire output of Greek extra virgin olive oil as a packaged product. About 40% of production is consumed domestically, roughly 25% is sold as packaged product, and the rest is exported in bulk. This bulk volume, exceeding packaged exports, depresses producer prices overall, causing instability whenever major countries like Italy, Spain, or Germany reduce their purchases,” he explains.
Karpadakis points out that competition has become increasingly fierce in recent years, with non-EU countries such as Turkey and Tunisia substantially increasing production and competing for larger shares of both packaged and bulk olive oil markets. “These nations enjoy lower production costs compared to Greece and the EU. Moreover, a portion of their imports into the European market enter duty-free, further exerting downward pressure on prices. Therefore, I believe Greece must expedite plans to develop new markets capable of absorbing Greek packaged olive oil instead of waiting for an Italian or Spanish trader to purchase our bulk product. Only then can the added value remain within the country,” he asserts.
Karpadakis also identifies two additional distortions impacting the Greek market: the distribution of large quantities of olive oil in tins sold directly to consumers — a practice illegal for containers exceeding five liters, which distorts the market’s true picture — and the untapped potential of the food service sector, which could absorb significantly more Greek extra virgin olive oil than it currently does. Notably, he mentions that global olive oil consumption has steadily increased over the past four decades, representing a prime opportunity for Greece to enter new markets with packaged Greek olive oil before this increased demand is met by competing products of often inferior quality.
Greece must accelerate its planning to develop new markets that will absorb Greek packaged olive oil, rather than waiting for an Italian or Spanish trader to buy our bulk product. — Manolis Karpadakis, Vice President of the Crete Exporters Association and certified olive oil sommelier at Terra Creta
Measures to Support the Sector
The question of necessary interventions to support the sector is addressed by Charilaos Gourniezakis, president of the Agricultural Olive Oil Cooperative of Viannos, who emphasizes that the current market conditions have pushed many producers to the brink of financial ruin.
He notes that following a sharp price surge in 2023–2024, a significant drop has occurred, leaving current producer prices below production costs. “Currently, demand is nearly non-existent while supply remains high, resulting in downward price pressures. When producers have invested in labor, fertilizers, irrigation, and all cultivation costs but cannot sell their product, they essentially fail to recoup their efforts,” he remarks, stressing that the issue impacts both cooperatives and individual olive growers. He adds that according to industry contacts, the olive oil market crisis is not just localized to Crete but is being felt nationwide.
When a producer has paid for labor, fertilizers, irrigation, and all the costs of cultivation, but cannot sell their product, they essentially cannot recoup their effort. — Charilaos Gourniezakis, President of the Agricultural Olive Oil Cooperative of Viannos
Regarding potential measures, Gourniezakis argues for a government focus on enhancing the international presence of Greek olive oil. “What’s necessary are organized promotional campaigns abroad, seminars, trade fairs, and meetings with traders, distributors, and major retail chains to forge new partnerships and facilitate broader marketing of Cretan and Greek olive oil in international markets,” he states.
Additionally, he stresses the importance of providing incentives to attract younger individuals into olive cultivation. Notably, he points out that most current producers are over the age of 50, while younger generations are distancing themselves from the primary sector due to economic uncertainty. “Young people need assurance that olive cultivation is a viable profession with a future. As long as this insecurity persists, it will become increasingly difficult to rejuvenate the labor force,” he concludes.