As global prices spike, the fate of Malta’s olive oil is up in the air

Rising temperatures in the Mediterranean have rendered olive oil scarcer than in recent memory. While Malta’s olive oil production is limited, it has not escaped the consequences of climate change, and the scorching damage to crops.

The global price of olive oil has spiked to $10,600 per metric ton in April, up from $5,300 in March. Production in some of the world’s largest producers Greece, Spain and Italy is down, as the heat nearly obliterated harvest this year. In Greece, the effects are particularly significant, with olive oil responsible for not only seven per cent of the country’s GDP, but also 25 per cent of Greek agriculture. 

In Malta, there are around 800 olive oil farmers, who not only face the crippling effects poised by climate change, but a lack of support from Government. Speaking to BusinessNow.mt, the cooperative for olive oil farmers, Olive Growers Cooperative Limited – Malta, painted a picture of the reality for local producers.

“The Maltese olive sector cannot be compared to any sector in the South of Europe or North Africa. Our production capacity is limited to the size of the island, and to the land available for the cultivation of olives,” the cooperative explains.

“In Malta, olive growers do not have any incentives or benefits under the Common Agricultural Policy. Therefore the sector depends on the hard work of the farmers and their families engaged in olive cultivation. The sector is still considered as an artisan industry due to the amount of trees under cultivation and since Malta does not have a central storage, blending and bottling centre.”

There are more than 800 olive growers registered with the Directorate of Agriculture, while the Cooperative has 128 members that own more than 8,000 olive trees around Malta.

Malta and Gozo has about eight to ten olive mills that receive harvested olives from olive growers. Then, the olive growers receive the extra virgin olive oil which is bottled and offered for sale to the local market. Exports are very limited and there is no data on how much EVOO is exported every year. The volume of local production limits the export capacity.

Furthermore, Malta has yet to introduce quality standards such as PDO and PGI and does not yet have an accredited laboratory and olive oil tasters.

The cooperative has also just recently began recording figures. In 2022 and 2023, the cooperative recorded high production numbers. In 2022, 741 tonnes of olives were harvested, making 96 tonnes of oil. In 2023, 868 tonnes of olives were harvest, the biggest number recorded, with 121 tonnes of olive oil produced. 

However, 2024 saw a bad year for farmers, due to the climate crisis, as seen across the Mediterranean. From 868 tonnes in 2023, the numbers shrank to 227 tonnes, with just 37 tonnes of oil yielded. 

“The high figures of 2022 and 2023 are production quantities of a good harvest and also better record keeping due to the awareness created by the Cooperative. 2024 was a bad harvest for olive growers due to climatic conditions which affects the cultivation process since olive cultivation depends on the natural environment on the olive grove.”

The cooperative explained that it also started a research project under the EAFRD about the genetic resources of the Bidni Cultivar, Malta’s indigenous olive. However, the grant was terminated.

“Unfortunately, the grant agreement was terminated by the Managing Authority and the Paying Agency without providing an opportunity to discuss the administrative issues raised in the termination letter. The Cooperative has taken the case to the Arbitration Centre. This research would have provided the much needed scientific data regarding the cultivars of the Bidni olive tree, as well as an educational campaign on the benefits of using extra virgin olive oil.”

With a lack of support and the effects of climate change, the fate Malta’s already limited olive oil production remains unknown.