Why Croatian olive oil is most expensive in Europe
- by croatiaweek
- in Food & Wine
Croatian extra virgin olive oil is among the most expensive in Europe, with recent data from the European Commission showing prices significantly higher than the EU average.
In December, the average price of a litre of extra virgin olive oil in Croatia was €14.13—136% more expensive than the EU average and 218% higher than the cheapest Portuguese oil.
By January, the price had dropped to €11.46 per litre, but it remained 79% above the EU average and 162% higher than the cheapest Spanish olive oil.
So why is Croatian olive oil so expensive? Expert Tomislav Filipović explained for Dobra hrana the reasons behind the high prices.
Filipović points out that olive oil prices have risen significantly over the past few years, mainly due to climate change and frequent droughts.
Despite these challenges, demand for high-quality olive oil remains strong in gastronomy.
Higher Production Costs in Croatia
Unlike major producers like Spain and Italy, Croatia faces much higher production costs.
“The key reason lies in the production process and scale. Our oils are of high quality, but the increase in prices is mostly due to rising domestic production costs rather than a significant improvement in quality,” Filipović explains.
Spain, for example, produced 1.3 million tonnes of olive oil last year, accounting for 48% of global production.
In contrast, Croatia produced just 6,000 tonnes. Additionally, Croatian producers lack access to the same subsidies and incentives available in larger olive oil-producing nations, making it even harder to compete on price.
Limited Supply and Dependence on Imports
Although production levels have stabilised, Croatian prices are not dropping as they are in other countries.
One of the main reasons is the limited production volume, which is insufficient to create strong market competition.
Early estimates suggest that Croatia’s self-sufficiency in olive oil was only around 40% in 2023, meaning the country had to import at least 60% of its annual needs.
With such a small market share, Croatia struggles to influence prices and remains dependent on imports.
While Croatian olive oil remains a premium product, its high price is mainly driven by rising costs, limited production, and market constraints rather than just quality alone.
