Olive oil production falls 10% in Portugal, but quality remains exceptional.

Azeite a Norte Blog
5 hours ago
3 min read

The figures for the 2025/2026 olive oil campaign have just been released and confirm what many producers already suspected: it was a difficult year. Portugal produced approximately 160,000 tons of olive oil, representing a 10% decrease compared to the 177,000 tons of the previous campaign, according to data from Olivum — the Association of Olive Growers and Mills of Portugal [1].

But there is good news: the quality remains at the highest level.

Adverse weather marks the campaign

The drop in production "reflects an off-season year and the impact of adverse weather conditions — high temperatures in the summer months, followed by heavy rainfall during the season," explains Gonçalo Moreira, from Olivum [1].

The start of the season was particularly challenging. "Very high temperatures and a prolonged absence of rainfall until autumn affected olive oil yields in the first few weeks," says the manager. However, "with the drop in temperatures, extraction yields improved progressively," allowing a final value close to the initial forecasts to be reached [2].

Unequal impact across regions

The breakdown was not uniform across the entire country:

Trás-os-Montes: Despite the significant drop, "there was a slight increase in the quantities of olive oil traded", although there is strong competition from olive oil imported from Tunisia [1].
Alentejo: Campaign completed shortly before the storm Joseph ("it was a close call!", a farmer lamented to Público [3].
Beira Interior: Stocks from the previous campaign continue to affect flow [1].

The exceptional quality of the olive oil remains intact

The truly important news for those who value Portuguese olive oil: no significant incidents of pests or diseases were recorded during this campaign. The result is a very significant percentage of extra virgin olive oil and high quality standards maintained.

This fact is crucial. At a time when the European Union is strengthening quality controls (as recently warned by the European Court of Auditors), Portugal continues to stand out for the authenticity and excellence of its olive oils.

According to Olivum, these results reinforce Portugal's position as an international benchmark in the extra virgin category, confirming the resilience and adaptability of the national olive growing sector, which continues to assert itself through quality, despite climate variability [1].

New olive groves compensate for crop failure

An important factor that prevented an even sharper decline was the "entry into production of new olive groves," reveals Gonçalo Moreira.

This investment in new plantations—many of them in Trás-os-Montes, with native varieties and organic farming practices—shows that the sector is preparing for the future, even in climatically adverse years.

And the prices?

Casa do Azeite had predicted in December a moderate campaign with no significant price changes during 2026.

It remains to be seen whether the now-confirmed 10% drop will cause fluctuations for the consumer. However, it is important to remember that between November 2024 and October 2025, the price of a liter of virgin olive oil in Portugal fell from €7.98 to €5.07 (a drop of more than 36%), according to the Agri-food Sector Price Observatory.

Worrying Iberian context

While Portugal faces a 10% drop, Spain — the world's largest producer — has suffered far more severe impacts due to bad weather [3]

Given that Spain accounts for more than 65% of European production, any significant variation in Spanish production directly affects international prices.

What does this mean for Trás-os-Montes

For an olive-growing region like Trás-os-Montes, this harvest was undoubtedly challenging. The summer fires, extreme temperatures, and then the intense rain and snow left their mark.

But the message is clear: quality was not compromised.

The centuries-old olive groves, the endemic varieties (Cobrançosa, Madural, Verdeal Transmontana), the traditional harvesting and cold extraction methods—all of this remained. Trás-os-Montes olive oil continues to be an excellent extra virgin olive oil, recognized internationally.

And that, in times of climate uncertainty, is worth more than any quantity.