Despite the temporary lifting of the measures, US President Donald Trump's recent decision to impose 20% tariffs on products imported from the European Union has a direct impact on Catalan agricultural and food exports. Olive oil, along with products such as wine and cava, and, to a lesser extent, processed meats, are among the most affected.
The United States is the seventh-largest destination for Catalan agri-food exports. In the case of Catalan agricultural cooperatives, it is the sixth-largest importer of these companies' products in the world and the largest outside of Western Europe, which is their main market.
After years of recovery, Catalan olive oil sales in the United States doubled in 2024 compared to the previous year. This is the second-largest destination market (15.2% of total exports), and last year, some 14,000 tons were sold, valued at €137.9 million. In the specific case of extra virgin olive oil, the United States is the leading export destination.
However, the Federation of Agricultural Cooperatives of Catalonia is awaiting both the possibilities that alternative markets could offer and the real impact the measure could have on American consumers.
Price of oil in the domestic market
Regarding the domestic market, the start of the new harvest generated a context of uncertainty and an inexplicable drop in prices. We understand that this situation was caused by several factors, especially the decision of some farmers—not affiliated with cooperatives—to sell their produce in an attempt to obtain profits before a possible drop in prices, but at the same time, creating an excess of supply.
The availability of Portuguese production, which is immediately marketed, and imports from other sources also influenced a drop of more than 50% in the price of olive oil, which in less than three months fell almost below the profitability threshold for farms, especially in the case of traditional dry farming.
To address the situation, the cooperatives are committed to responsibility and prudence. Our goal was to avoid self-interested actions that would lead to price drops in a market that was, in reality, showing clear signs of stress due to the limited availability of products.
In January, there was a change in the olive oil price trend, although currently, prices at source remain low, around €3.92 per kilo for extra virgin olive oil; €3.34 for virgin olive oil; and €3.02 for extra virgin olive oil. Prices have fallen by more than 50% (or more than half) compared to a year ago, when olive oil was trading for over €9 per kilo.
The distinctive features of extra virgin olive oil
After two years of high prices, we in the sector believe that it is necessary to explain and make the consumer understand thatextra virgin olive oil It is not the same product as theolive oil.
It can be used in the same way, but it has nothing to do with quality, organoleptic characteristics, health benefits, or sustainability.
Certainly, in recent months, consumers have struggled to pay between €8 and €10 per kilo for extra virgin olive oil due to limited availability. However, if we consider all the reasons we've just mentioned and the significant increase in production costs in recent years, we must avoid once again falling into the trivialization of extra virgin olive oil.
The harvest falls by 50% compared to the historical average
This year, only about 15,200 tons of olive oil have been produced in Catalonia—8,390 in Lleida and 5,670 in Tarragona—while in Spain, average production has recovered, with a harvest of almost 1,400,000 tons.
The forecast of the Federation of Agricultural Cooperatives of Catalonia is therefore confirmed: for the second time in the last three seasons, our harvest has not reached half of the historical average.
Since 2022, the sector's need for support irrigation to stabilize production has become clear. Drylands have been severely affected, and planning, modernization, and implementation of irrigation systems are necessary to ensure the future of the olive oil sector and price stability in the Catalan market.
Added value of cooperatives
In Catalonia, there are around one hundred agricultural cooperatives that produce olive oil, and we produce 76% of the total in Catalonia. Our deep roots in the region and our high quality mean that these companies are well represented in the five Protected Designations of Origin (PDOs) for olive oil: Les Garrigues, Siurana, Baix Ebre and Montsià, Terra Alta, and Empordà.
The integration of farmers into cooperatives is the best tool for organizing supply and ensuring a fair price. We are supply-concentration structures, increasing negotiating power, creating added value, and ensuring that corporate profits return to the countryside and benefit the people who keep rural areas alive.
At the same time, olive oil cooperatives remain sensitive to the needs of society. We advocate for a reasonable price for extra virgin olive oil, both for farmers and cooperatives, as well as for consumers. We are committed to creating culture and giving the value it deserves to a product as unique as ours: healthy, sustainable, and good.
