Olive producers in Montenegro’s Bar region are forecasting a substantial decline in the harvest of the dominant žutica variety, with estimates suggesting a drop of up to 50% this year. This situation raises concerns about potential shortages and the subsequent increase in prices for premium olive oil.
The Bar Olive Growers Association indicated that the reduction in production could lead to prices for high-quality domestic olive oil climbing towards €25 per litre. Historically, the price for premium locally produced oil has started at around €20 per litre, indicating that a poor harvest may exacerbate the price disparity between domestic and imported oils.
This estimate primarily pertains to the Bar region and has yet to be validated as a national harvest outcome. However, Bar remains one of Montenegro’s key traditional olive-growing areas, making this anticipated decline significant for local producers.
A decrease in output is likely to result in lower sales volumes; however, it could also enable farmers who manage to produce premium-quality oil to command higher prices. Conversely, this supply constraint may lead to increased demand for imported olive products.
Local producers have expressed concerns regarding the authenticity of imported olives and olive products, which can sometimes be misrepresented as domestic goods. This issue is particularly pertinent if demand for Montenegrin-origin products rises due to higher price premiums.
While the olive sector is relatively small compared to Montenegro’s tourism or energy sectors, it is becoming increasingly important in high-value food production and rural tourism. Premium olive oil, along with traditional groves and farm visits, are integral components of Montenegro’s growing gastronomic tourism sector.
A poor harvest not only impacts agricultural revenue but also affects the availability of locally branded products that are utilized by restaurants, hotels, and other tourism-related businesses. For producers, the immediate challenge lies in navigating reduced volumes while capitalizing on stronger prices and ensuring the integrity of domestic-origin labels.
