Saturday, July 19, 2025

THE OLIVE OIL CRISIS AND GREECE

 Filenews 19 July 2025



In December 2024, at the height of the olive growing season, two men drove a stolen municipal truck to the olive mill of Glyfada, near Kalamata. They loaded 33 bags full of olives into the back and then transported them to a plot of land to pack them into other bags, apparently trying to hide their origin. The truck was returned to the place from where they had taken it, but they had left behind a crucial element: the vehicle had been clearly recorded by a security camera of the olive mill. Even worse, they took the olives to another olive mill, asking the owner to turn them into oil. He, suspicious, called the police.

Although the story is reminiscent of a farce, the bottom line is serious: thefts of olives and olive oil have skyrocketed across the Mediterranean, from Spain and Italy to Canada and the United States. In Greece, however, the phenomenon has taken on alarming dimensions, linked to the climate crisis, the cost of living and the insecurity of small producers.

The olive tree is a traditional crop in the Mediterranean, with deep roots in history and economy. Olive trees thrive in dry and arid soils, which in the past made them resistant to climatic variability. But now, the drought has taken on alarming proportions, with SpainItaly and Greece – the world's top three producers – seeing their yields drop dramatically.

For Greece, olive oil production is a key export product, with annual exports worth more than €1 billion. At the same time, the country is one of the largest consumers in the world: the average Greek consumes about 20 liters of olive oil per year, almost 10 times more than the average American. Olive oil is, therefore, both an economic and a cultural capital.

However, the year 2023-2024 was disastrous. According to Eurostat data, Greece suffered the greatest economic losses in Europe due to climate change, with the cost amounting to 400 euros per inhabitant. Production collapsed in many areas, especially in the Southern Peloponnese, resulting in the price of olive oil more than doubling. Many producers chose not to harvest the olives at all, deeming the effort economically unprofitable.

Disorders

Drought and unusually high temperatures in winter are decisive factors. Olives need a period of low temperatures to hibernate and prepare for spring flowering. When this cycle is disrupted, fruiting is reduced. At the same time, the absence of rain in winter leads to a lack of soil moisture, while rain in spring or even during the harvest period – as happened this year – causes flowers to fall and an increase in Daco infestations.

The 2021 fire in Evia was a turning point. About 80% of the island's olive groves were destroyed, while, in 2023, another fire in Evros burned over 130,000 olive trees. The consequences are not only economic. As trees take 10 to 20 years to produce again, many producers have abandoned their fields for good. Young people are discouraged from getting involved in the industry, seeing the uncertainty and burden.

Meanwhile, thefts of olive oil and olives are intensifying. In Crete, unknown persons removed more than 180 kilograms of olives from a private warehouse. In Attica, trees were cut down and transported whole. In some cases, even olives have been stolen from... Cemeteries. The pressure from high prices makes even small quantities an attractive target for delinquent groups. According to data from the BSI Group, a third of global thefts of goods now involve food and agricultural products.

Small producers respond with a variety of measures: security cameras, night patrols, and even microchipping on branches for tracing. Others are investing in agricultural improvements: planting more resistant varieties, more frequent use of natural plant protection products, irrigation with new techniques. Some plant trees more densely to maintain moisture while, in areas such as Evia, where the fear of fire is intense, the opposite method is applied.

The traditional harvest by members of the olive family has all but disappeared. Greece is facing a severe labour shortage, with 20-30% of green table olives remaining unharvested during the 2022-2023 season. The government has proceeded with a program of temporary legalization of immigrants for agricultural work, but many producers say they are frustrated by the bureaucracy or have reservations.

Wages of agricultural workers have risen – from €40 to €60 a day – resulting in further pressure on production costs. At the same time, export "channels" are threatened by possible tariff impositions such as those considered by the Trump administration in the US, with possible implementation within July 2025.

Symbol

At the same time, much of Greek olive oil is exported en masse and is often repurposed as Italian. Greek producers are protesting, but acknowledging the need for liquidity. The phenomenon of adulteration has also not disappeared: olive oils are mixed with cheaper oils or baptized "virgin" without being so.

The solution, experts say, is through the collective organization of producers and the use of modern technologies. Blockchain is being piloted in some regions, providing transparency on the origin and stages of production. At the same time, the expansion of organic farming increases added value while reducing dependence on chemical fertilizers and pesticides.

Greek producers are called upon to adapt immediately. The future of the olive tree is not only an agricultural issue, but also a social, economic and political issue. The "green heart" of the Mediterranean – olive oil – is under threat, but at the same time it remains a symbol of endurance and culture.

Rendering – Editing: George D. Pavlopoulos

Bloomberg