Tunisian olive oil shipments to the EU are pushing down prices for Italian oil

Active supplies of olive oil from Tunisia to the EU are putting pressure on the Italian oil market, forcing processors to sell their products at a loss, the Financial Times reports.

In the first 10 months of 2025, oil imports from Tunisia increased by 40% just as Italy began harvesting its olives.

Tunisian oil is imported to Italy at a price of €3.5/kg, making local oil uncompetitive. However, experts note that Italy is heavily dependent on imported oil, so foreign supplies are unavoidable, given the structural production deficit. In addition, the recovery of the harvest in the Mediterranean after two years of drought is contributing to the decline in prices.

It is expected that in 2025 the EU will import about 500 thousand tons of olive oil, while its own production will be 300 thousand tons.

The Tunisian authorities are demanding a doubling of the quota for duty-free oil supplies to the EU, to 100,000 tons. However, such a decision must be agreed upon by EU member states, which are already under pressure from the agricultural sector, especially after the agreement with MERCOSUR signed in January.