Olive Oil Price Wars: Tunisia Floods Italy, Threatening Local Producers
Italian olive oil producers are facing a crisis as a surge in cheaper Tunisian imports drives down prices and intensifies tensions between farmers and the powerful bottling industry. The influx of lower-priced foreign supplies coincides with the Italian harvest, leading some producers to sell at a loss.
A 40% Surge in Tunisian Imports
According to agricultural group Coldiretti, imports from Tunisia increased by approximately 40% year-on-year during the first ten months of 2025. This dramatic rise has made it difficult for Italian producers to compete, with Tunisian olive oil entering Italy at around €3.50 per kilogram – significantly lower than the Italian product, which sells for just over €9 per kilogram.
Calls for Increased Trade Barriers
Coldiretti warns that price recovery will be “very difficult.” The organization believes the situation is “organized” by the olive oil industry to lower prices within Italy. Simultaneously, Tunisia is seeking to double its duty-free olive oil export quota to the EU to 100,000 tons annually, a move that is sparking protests from European farmers.
Structural Deficit and Changing Trade Dynamics
However, the Italian Association of Food Oil Industries argues that imports are unavoidable given Italy’s structural deficit in olive oil production. The country relies on imports to meet its annual demand of around 600,000 tons, historically sourced primarily from Spain, but increasingly from Tunisia. Recent production shortfalls, due to unfavorable weather conditions, have exacerbated the situation.
The Rise of “Fake” Olive Oil and Labeling Concerns
The price increases have also fueled a rise in fraudulent olive oil, with some products falsely labeled as “extra virgin” or consisting of cheaper vegetable oils colored with chlorophyll. This practice deceives consumers and further undermines legitimate producers.
EU Oversight Lacking
A recent report by the European Court of Auditors revealed significant gaps in oversight, with controls on pesticide residues and other contaminants in imported olive oil being “non-existent or very limited” in several EU member states, including Italy and Spain. The report found that 75% of olive oil imports into the EU originate from Tunisia.
Loopholes in EU Regulations
Critics, including Coldiretti, point to EU customs regulations that allow products processed in Italy to be marketed as Italian-made, even if the raw materials are imported. This practice obscures the origin of the oil and makes it difficult for consumers to identify genuinely Italian products.
Challenges Facing Italian Olive Farmers
Italian olive farmers have faced numerous challenges in recent years, including plant diseases, unstable weather, labor shortages, and aging orchards that are difficult to replace due to strict landscape preservation rules. These factors contribute to the country’s reliance on imports.
A Complex Situation: Supporting Tunisia While Protecting Local Industry
Some, like Tuscan olive producer Michele Buceleti, acknowledge the importance of supporting the Tunisian economy and potentially reducing immigration pressures on Italy. Buceleti notes that Tunisian olive oil is often of high quality, with relatively low pesticide residue levels. However, he warns that a lack of traceability creates opportunities for fraudulent practices, with unscrupulous traders mislabeling Tunisian oil as Italian to undercut prices.
FAQ
Q: Why is Tunisian olive oil cheaper than Italian olive oil?
A: Several factors contribute to the price difference, including lower production costs in Tunisia, favorable weather conditions that boosted their harvest, and a desire to gain market share in Europe.
Q: What is Coldiretti?
A: Coldiretti is a major agricultural organization in Italy that represents farmers and advocates for their interests.
Q: Is the olive oil I’m buying actually extra virgin?
A: It’s becoming increasingly difficult to be certain. Glance for certifications and buy from trusted brands to minimize the risk of purchasing fraudulent products.
Q: What is the EU doing to address the issue of fraudulent olive oil?
A: The European Court of Auditors recently highlighted significant gaps in oversight, and there are calls for stricter regulations and enforcement to combat fraud.
Did you know? Two seasons of poor weather across Europe drove olive oil prices to multi-year highs in 2024, encouraging Tunisian farmers to expand production.
Pro Tip: Look for olive oil with a Protected Designation of Origin (PDO) or Protected Geographical Indication (PGI) label to ensure authenticity and quality.
What are your thoughts on the future of olive oil production? Share your comments below!
