Italy considers ISMEA financing as olive oil producers face price and liquidity pressure
Italy is considering ISMEA financing and possible AGEA measures to support olive growers, mills and other operators affected by weak prices, unsold inventories and limited liquidity. The government also plans talks with large retailers and hospitality buyers while the Senate considers €300 million for the National Olive Plan.
Government and southern regions assess market pressure
Italy’s Agriculture Ministry is examining financial and commercial measures for an olive oil sector under pressure from prices, unsold inventories and growing liquidity needs before the new production campaign. Agriculture Minister Francesco Lollobrigida and Undersecretary Patrizio La Pietra discussed the situation with agriculture officials from Puglia, Calabria, Campania and Basilicata, the principal producing regions in southern Italy.
Teatro Naturale reported that the four regions account for a large majority of Italian olive production. Il Dispaccio described them as the areas where almost all national olive oil production is concentrated. The meeting focused on price trends, volumes of oil still in storage and operators’ ability to finance harvesting and processing during the approaching campaign.
Stored oil ties up working capital at a sensitive point in the production cycle. Farms, mills and commercial operators need funds for new crop operations, but inventory that has not yet been sold limits their financial room. The severity of the problem differs among producing areas, according to the reports.
ISMEA and AGEA measures under consideration
Officials discussed financial instruments that could be activated through ISMEA, including support linked to the value of oil held in storage. They also considered possible measures through AGEA. No funding amount, eligibility rules or implementation timetable for these short-term options was disclosed.
The immediate objective is to provide liquidity while helping operators release existing stocks onto the market. That creates a difficult balance: faster sales could ease cash constraints, but additional supply could intensify pressure on farmgate prices and reduce returns for growers and processors.
The ministry will also open discussions with large-scale retail groups and the Ho.Re.Ca. channel, covering hotels, restaurants and catering businesses. These buyers are expected to be central to efforts to increase sales and consumption of Italian-origin oil. Consumer promotion campaigns are already under way, while the ministry has launched an extraordinary inspection plan intended to ensure compliance throughout the supply chain.
Long-term plan targets production and Xylella
Lollobrigida said market volatility and unfair practices were preventing adequate recognition and remuneration of Italian oil, alongside the loss of production capacity caused by Xylella. Italy has more than 500 olive cultivars, and the government is presenting biodiversity, quality and origin as core competitive strengths.
For longer-term intervention, the Coltivaitalia measure under consideration in the Senate provides €300 million for implementation of the National Olive Plan. It also предусматривает the appointment of a special commissioner to address the Xylella emergency. The government has called for close coordination with regional authorities as the measure proceeds.
The policy discussion therefore has two distinct horizons. ISMEA financing, possible AGEA action and buyer engagement are intended to prevent inventories from disrupting the next campaign. The National Olive Plan, Xylella response and stronger promotion of Italian origin are aimed at production capacity and profitability over a longer period. The sources did not report final decisions on the proposed short-term support.
