Italy’s Olive Oil Imports Rise as Local Production Falls 38%

Italy’s olive oil production has fallen 38% since 2006, dropping from 603 million liters to 379 million liters in 2025, while imports climbed 44% and exports rose 43% over the same two decades, according to newly analyzed data from the Italian National Institute of Statistics (ISTAT). The figures confirm a structural shift: Italy, long one of the world’s top olive oil producers, is increasingly functioning as a trade and blending hub rather than a self-sufficient producer.

From Production Giant to Global Trade Hub

By 2025, only 81 million liters of Italian-grown olive oil stayed in the domestic market, down 79% from 394 million liters in 2006. Exports now account for nearly 79% of national production, as Italian companies import foreign oil to blend, bottle and re-export under Italian and EU brands. This shift has occurred alongside tighter EU traceability rules: since 2009, extra virgin and virgin olive oils sold in the EU must disclose their geographical origin, with clearer labeling requirements for blends sourced from multiple countries. For international suppliers, including Tunisian producers, this means Italian buyers increasingly need well-documented, traceable bulk oil that meets these labeling standards.

Climate Pressure and a New Recovery Plan

Italy’s cultivated olive area shrank just 1.4% between 2006 and 2025, but average yields dropped 26.1%, from 30.7 to 22.7 quintals per hectare, as climatic and phytosanitary pressures took a toll on groves. In 2025, favorable conditions in southern Italy lifted production 9.6% year-on-year, though prices still fell 3.4%. The Italian government’s newly adopted 2026-2030 Olive Oil Plan aims to modernize orchards, curb grove abandonment and cut production costs. Agriculture Undersecretary Patrizio La Pietra said years of fragmented production and climate pressure had “progressively eroded the sector’s productive potential.” Meanwhile, large unsold stocks are complicating the run-up to the new harvest, and the United States, which accounted for 38% of EU olive oil export value in 2025, remains a key swing factor for Italian exporters.

FAQ

Why is Italy importing more olive oil despite being a major producer? Domestic Italian olive oil production fell 38% between 2006 and 2025 due to climate and phytosanitary pressures, so Italian companies now import more foreign oil, much of it for blending and bottling, to meet both local consumption and a growing export business.

What does this mean for buyers sourcing Tunisian olive oil? As Italy exports a rising share of its own oil and relies more on imports to do so, demand for well-documented, EU-compliant bulk olive oil from producers like Tunisia is likely to keep growing, making traceability and quality certification increasingly important for exporters.

Source: Olive Oil Times