Albania’s olive oil export sector is facing an unprecedented crisis, with exports dropping by a staggering 97% in early 2025 compared to the previous year. According to data from the Albanian Customs Administration, the amount of olive oil exported in January 2025 was even lower than during the COVID-19 pandemic. Industry operators, particularly in Berat and Lushnjë, are calling for government subsidies to support production, while the Ministry of Agriculture is assessing a project to establish a farming cluster in Berat to improve storage and processing facilities, Monitor reports.
A Drastic Decline in Exports
The situation for olive oil exporters has worsened since December 2024. Industry representatives confirm that exports have almost completely stalled due to low market prices. Bulk olive oil, which is mainly exported to Italy, is currently being offered by Italian wholesalers at prices between 350 to 400 ALL per liter, a rate far below production costs. Meanwhile, packaged olive oil, which was previously exported in large quantities to the U.S., is struggling to compete with cheaper imports from Greece.
Customs data reveals that only 11,206 kg of olive oil was exported in January 2025, marking a dramatic 97% drop from the same period in 2024. The downturn began in late 2024, with total exports between October and December reaching just 17.4 thousand kg—far below the 28,000 kg exported during the pandemic in 2020.
In 2024, Albania exported 2.3 million kg of olive oil, a decline of 62% compared to 2023. In monetary value, exports shrank by approximately 44% year-on-year. The 2023 export boom, mainly driven by the demand for unbottled olive oil from Italy, had been fueled by an oversupply crisis in 2022, when farmers struggled to find buyers.
Producers Struggle with Low Prices and Rising Costs
The sharp decline in exports is largely attributed to price competition from European markets. Spain, a major global olive oil producer, is currently selling high-quality extra virgin olive oil at €3.8 to €4.4 per liter, pushing down prices globally. In contrast, Albanian olive oil producers face significantly higher production costs.
Aldo Jolla, an olive oil processor and exporter from Belsh, reports that his exports have been completely halted since December due to the low prices offered by Italian wholesalers. “In November, we managed to export a small quantity, but since then, we haven’t exported a single drop. Italian wholesalers are demanding bulk extra virgin olive oil at 350 ALL per liter, whereas in December, they were willing to pay between 450 and 500 ALL. These prices are below our production costs,” he said.
Labor costs have also skyrocketed, making it even harder for Albanian producers to compete. “This year, labor costs for olive pickers ranged from 3,000 to 4,000 ALL per day, up from 2,000 ALL last year. In Greece, pickers are paid around €80 per day, so many local workers prefer to migrate for seasonal work,” Jolla explained.
The Need for Government Support and Infrastructure Improvements
Industry leaders are urging the government to introduce subsidies for olive oil production, similar to those in Greece, where farmers receive €1 per liter in state support. The Ministry of Agriculture is currently evaluating a $900,000 investment project to establish a farming cluster in Berat, which would bring together 50 farmers and create new olive oil storage facilities.
Taulant Musaraj, director of an olive oil processing plant in Cakran, Berat, confirms that his exports have also been completely halted. In 2024, his company exported 19 tanks of oil, each containing 20.5 tons, to Italy at a price of 820 ALL per liter in August. Now, Italian wholesalers are offering only 500 to 550 ALL per liter, making exports unprofitable. “We are waiting for prices to stabilize before resuming exports,” he said.
Domestic Market Saturation and Quality Concerns
The collapse of exports is also leading to an increase in unsold olive oil stocks among farmers. Many producers are storing their oil at home in plastic containers, which risks degrading its quality.
“We have storage capacity in stainless steel tanks, but the cost is too high for most farmers. If oil is stored improperly in plastic containers, its quality deteriorates within months,” Jolla warned. Other industry players confirm that, while they have the facilities to store large quantities of olive oil under optimal conditions, low export prices make it financially unviable.
The Bigger Picture: Structural Weaknesses in the Albanian Olive Oil Industry
The challenges faced by Albania’s olive oil sector highlight broader structural issues, including low levels of mechanization, lack of government subsidies, and high levels of informal sales. Business consultant Enea Janko explains that Albanian producers are unable to compete internationally due to their high production costs and outdated processes.
“Albania’s olive oil exports depend entirely on international market conditions. In 2023 and 2024, we saw an increase in exports because major producers like Spain and Italy faced poor harvests due to drought. Now that they have recovered, global prices have fallen, making it difficult for Albanian producers to compete,” Janko noted.
He also emphasized the lack of government support, stating that olive oil production in Spain, Italy, Greece, and Portugal is heavily subsidized by both the EU and national governments. In contrast, Albanian farmers receive little to no financial assistance.
Another issue is the cost of laboratory testing and the lack of specialized institutions to provide farmers with technical guidance on preserving oil quality. The widespread use of banned pesticides and inadequate storage facilities further reduce the competitiveness of Albanian olive oil.
“It’s shocking to see olive oil being sold on the streets in plastic containers without any quality control. Even more shocking is that this unregulated oil is exported to EU and U.S. markets through informal channels,” Janko said.
Outlook: Can the Sector Recover?
The future of Albania’s olive oil industry remains uncertain. With the domestic market oversaturated and exports at a standstill, producers are hoping for a price recovery in the coming months. Some expect demand to rise in May with the start of the tourist season, which could help stabilize prices.
However, without significant structural reforms, including increased government support, improved processing infrastructure, and better marketing strategies, Albania’s olive oil sector will continue to struggle to compete on the international stage.
For now, farmers and exporters are left waiting for market conditions to improve, hoping that the worst of the crisis is behind them.