La Unió Llauradora has denounced the "difficult situation" being faced by olive oil producers in the Comunitat Valenciana at the start of a campaign with "good harvest prospects, but which is marked by insufficient prices at source that are 30% below production costs".
In a statement, the organization warns that this scenario "threatens the profitability of Valencian olive-growing farms and may worsen the abandonment of a crop fundamental to the rural economy and the maintenance of the territory".
The head of the olive oil sector of La Unió, Enric Simó, indicates that, although the production forecast is positive in most areas, the evolution of prices is generating growing concern among farmers. "Anything below four euros does not pay off and even more so now, with diesel and fertilizer costs skyrocketing," he warned.
The data handled by the organization place the price of extra virgin olive oil at around 3.20 euros per kilo at source, while production costs exceed four euros. In the case of lampante oil, prices fluctuate between 2.50 and 2.60 euros per kilo.
A recent study calculates that olive grove cultivation costs in the Comunitat Valenciana are around 4.60 euro/kg for traditional mechanizable rainfed olive groves, the most widespread in Valencian territory. In this way, the oil would be being paid at nearly 30% below costs. For every 1,000 kg of oil sold at 3.20 euro/kg, the producer would stop receiving 1,400 euro compared to what it costs to produce it.
It asks the Generalitat for direct aid for the olive grove
Given this situation, La Unió has requested from the Conselleria de Agricultura direct aid of 400 euros/ha for traditional rainfed olive groves, aimed primarily at professional farmers. The purpose is to partially compensate for the lack of profitability and avoid the abandonment of this crop in areas with natural limitations and low productivity.
This aid is intended to mitigate the drop in income and the increase in costs, also taking into account the structural particularities of traditional olive groves, the risk of abandonment, their environmental role, fire prevention, and the impact on the fight against depopulation.
The gap between what is earned and what it costs to produce turns the good harvest forecasts into a paradox for the sector, since a greater amount of olive does not translate into more benefits if prices do not allow covering the costs of cultivation, harvesting and processing.
A structural problem in the Valencian olive grove
The agricultural organization insists that the lack of profitability is not an isolated episode of this campaign, but a threat to the continuity of the Valencian olive grove. According to La Unió’s data, in the Comunitat Valenciana there are 16,455 hectares of abandoned olive groves, of which 6,322 have ceased to be cultivated in the last five years.
Market volatility, with campaigns of low production and high prices followed by others with very low quotations, makes planning for farms difficult and slows the incorporation of new farmers. "In recent months several young people have joined, for example in my region of the Maestrat, the sector and they are going to find a price scenario that does not even allow production costs to be covered. This situation, of course, can discourage those who are trying to make their way in agriculture," says Simó.
La Unió also adds "the increase in bureaucratic requirements and uncertainty over the aids of the Common Agricultural Policy (CAP), factors that make the viability of farms even more complicated".
Foreign competition and request for market regulation
The organization also draws attention to the pressure of imports from third countries, especially from Tunisia and Morocco, where production costs are lower. Between January and May, Spain imported 115,300 tons of olive oil, 27.5% more than in the same period of 2025, according to campaign information.
La Unió calls for the market to operate with balanced competition rules and denounces that Spanish producers assume labor, environmental and phytosanitary requirements that are not always demanded of exporting countries.
In this context, it asks the Government to activate the regulation mechanisms provided for in the regulations, such as the temporary withdrawal of up to 20% of olive oil production through its storage for several months in mills and cooperatives. When market conditions improve, that oil could return to being marketed in a staggered manner.
The organization recalls that "the sector cannot be asked to maintain the olive grove, conserve the territory and contribute to environmental sustainability while the prices received by producers doom them to working at a loss".
For this reason, it calls for "effective measures that make it possible to stabilize the market, guarantee the profitability of farms and stop the abandonment of a crop strategic for numerous regions of the Comunitat Valenciana".