Greek olive oil, one of the country’s most important agricultural products and a cornerstone of its primary production sector, is facing a prolonged crisis that extends far beyond any single region — affecting virtually every olive-growing area in Greece. From Crete and the Peloponnese to Central Greece and the Ionian Islands, thousands of tons of olive oil remain unsold in cooperative warehouses, commercial activity is moving at an extremely slow pace, and the prices being offered in many cases don’t even cover the cost of production.
Despite the fact that the quality of Greek extra virgin olive oil continues to be recognized internationally, producers are once again watching the value of their product decline amid a climate of deep uncertainty. Limited demand, the Greek market’s dependence on bulk exports, shifting international trade dynamics, and the absence of a comprehensive national strategy for marketing and promoting the product all paint a difficult picture — one that is testing the resilience of the entire sector.
In conversations with agricultural cooperatives, it became clear that the problem takes on even greater proportions in regions where olive cultivation is the primary source of income and the backbone of the local economy. The lack of liquidity, the inability to move existing stockpiles, and the downward pressure on prices are causing serious concern among producers, who are calling for meaningful interventions and a strategy that will allow Greek olive oil to realize its true value in international markets.
Olive oil: a stagnant market with little interest from traders
Eleftherios Vardoulakis, president of the Agricultural Olive Oil Cooperative of Palaiochora, Crete, speaking to Parapolitika, describes a market that remains essentially at a standstill, with quantities of olive oil continuing to sit in cooperative warehouses due to limited interest from traders. As he explains, the Greek market remains heavily dependent on bulk exports and the decisions made by major commercial buyers abroad — a dynamic that directly influences demand and price formation. He also points to the growing presence of olive oil from third countries in the European market as a key factor. “I believe the situation is largely shaped by what is happening in the Spanish market, while the entry of Tunisian olive oil has significantly impacted the overall market picture. We sell our product directly to wholesale traders, but right now there is no demand. For things to change, new markets outside Europe need to open up so that greater demand for Greek olive oil can be created,” he notes.
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 significant portion of Greek production has been exported in bulk, primarily to Italy, where it is packaged and then sold in international markets under foreign brand names. This model has created a long-standing dependency on the needs and preferences of large foreign buyers. When demand contracts, or when these companies turn to alternative sources of supply — such as olive oil from third countries — the pressure is immediately passed on to Greek producers, who are forced to either sell their product at lower prices or leave it sitting unsold in their warehouses.
In the same vein, Manolis Karpadakis, vice president of the Crete Exporters Association and certified olive oil sommelier at Terra Creta, speaking to Parapolitika, explains that the market’s current state is being shaped by a combination of international economic and geopolitical factors that have dampened demand for Greek olive oil, particularly in export markets. “The market has seen a slight dip in demand for the product, especially abroad. This is a result of geopolitical developments and the uncertainty prevailing among consumers, primarily in the European market. At the same time, rising transportation costs and longer delivery times are influencing distribution network decisions and, by extension, demand,” he notes.
He points out that one of the Greek market’s long-standing structural problems is its continued heavy reliance on bulk exports, which limits the added value that remains in the country and leaves producers vulnerable to fluctuations in international markets. “The vast majority of Greek olive oil is exported in bulk, mainly to Italy. The reason is that, to this day, we have not managed as a country to develop markets capable of absorbing the full output of Greek extra virgin olive oil as a packaged product. Around 40% of production is absorbed by the domestic market, approximately 25% is sold as packaged product, and the remainder is exported in bulk. This bulk quantity — which exceeds packaged exports — depresses producer prices overall and creates instability whenever countries like Italy, Spain, or even Germany cut back on their purchases.”
He also points out that competition has intensified considerably in recent years, as non-EU countries such as Turkey and Tunisia have significantly ramped up production and are competing for larger shares of both the packaged and bulk olive oil markets. “These countries have lower production costs compared to Greece and the EU more broadly. Furthermore, a portion of their imports into the European market enters duty-free, which places even greater downward pressure on prices. That’s why I believe Greece must accelerate its planning to develop new markets capable of absorbing Greek packaged olive oil, rather than waiting for an Italian or Spanish trader to come and buy our bulk product. Only then will the added value remain in the country.”
Karpadakis also highlights two additional distortions that, in his view, are affecting the Greek market. On one hand, he points to the distribution of large quantities of olive oil in tins sold directly to consumers — a practice that, he notes, is illegal when it involves containers of more than five litres and distorts the true picture of the market. On the other hand, he emphasizes that the food service sector could be absorbing far greater quantities of Greek extra virgin olive oil than it currently does. It is also worth noting that, according to Karpadakis, global olive oil consumption has been on a steady upward trajectory for the past forty years — and this represents a significant opportunity for Greece to capture new markets with packaged Greek olive oil, before the growing demand is met by competing products that are often of 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
The question of what interventions are needed to support the sector is addressed by Charilaos Gourniezakis, president of the Agricultural Olive Oil Cooperative of Viannos, who speaking to Parapolitika stresses that the current state of the market has pushed many producers to the brink of financial ruin.
He points out that following the sharp price surge of 2023–2024, a significant drop ensued, leaving producer prices today below the cost of production. “Right now demand is almost zero, while there is a large supply — and that is pushing prices down. 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,” he says, noting that the problem affects both cooperatives and individual olive growers alike. He also makes particular mention of the fact that, based on contacts he has had with others in the industry, the olive oil market crisis is not confined to Crete — it is being felt across the entire country.
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
As for the measures that could be taken, Gourniezakis believes the government should prioritize boosting the international outreach of Greek olive oil. “What’s needed are organized promotional campaigns abroad, seminars, trade fairs, and meetings with traders, distributors, and major retail chains, so that new partnerships can be forged and it becomes easier to market Cretan and Greek olive oil more broadly in international markets.”
At the same time, he stresses that it is equally important to introduce incentives to attract younger people into olive cultivation. As he points out, the majority of producers today are over the age of 50, while younger generations are moving away from the primary sector due to economic uncertainty. “Young people need the assurance that this is a viable profession with a future. As long as this insecurity persists, it will become increasingly difficult to bring about a renewal of the productive workforce,” he concludes.
