Why olive oil prices are rising in Croatia while falling across Europe

While the price of olive oil has been falling steadily across much of the European Union, Croatia stands out as a notable exception.

According to data from the Agricultural Market Information System (TISUP), the average price of olive oil in Croatia in May 2025 was 1,168 euros per 100 kilograms.

This is an astonishing 93.4 percent higher than the EU average of 604 euros for the same quantity.

In contrast, most Mediterranean countries are seeing significant price drops. Prices have fallen by 8 percent in Italy, 26 percent in Cyprus, 41 percent in Greece, 43 percent in Portugal, and a remarkable 55 percent in Spain. On average, the EU has recorded a 44 percent decrease.

The only neighbouring country experiencing a price rise is Slovenia, with a modest increase of 4 percent.

So, why are prices continuing to climb in Croatia?

As HRT reports, experts point to a combination of factors:

High production costs

Croatian olive oil is largely produced on small family-run farms where most of the work is done by hand.

This type of artisanal production is more labour-intensive and expensive than large-scale operations. In addition, rising prices for energy, packaging and fertilisers are putting further financial pressure on producers.

Lack of market organisation

Unlike major producers such as Spain and Italy, which benefit from cooperatives and centralised purchasing systems that help reduce costs, Croatian producers often operate independently.

The absence of organised market structures means higher individual costs and less bargaining power.

Low domestic production

Croatia produces around 4,000 tonnes of olive oil annually, but domestic demand exceeds 8,000 tonnes. This shortfall increases reliance on imports and puts upward pressure on local prices.

Strong demand in tourist regions

Olive oil is a sought-after souvenir, especially in popular coastal destinations. Bottles with designer labels and premium packaging are marketed as luxury products, driving prices even higher.

Climate change impact

Adverse weather conditions, including drought and extreme heat, have led to reduced yields in many olive groves. These environmental challenges have also contributed to rising costs.

Despite the high quality of Croatian olive oil, industry experts warn that sustained high prices may harm the long-term competitiveness of domestic producers on the European market.

As Croatia continues to rely on small-scale production, and with growing global pressure on food prices, the olive oil sector faces the challenge of balancing quality, sustainability and affordability.