The ultimate objective of the EU Olivero project was to improve the quality of life of the rural population and to assure the sustainable use of the natural resources of land and water in the sloping and mountainous olive production systems (SMOPS) areas in Southern Europe. One specific objective was to develop, with end-users, alternative future scenarios for olive orchards in the five Olivero target areas. This paper discusses the development of these scenarios, and their socio-economic and environmental effects. After presenting the different production systems (SMOPS) and their strengths, weaknesses, opportunities and threats, a general overview is given of the medium- and long-term prospects. These have been validated by experts from the olive sector and foresee changes towards abandonment, intensification and organic production. On balance, the changes could lead to lower production of some target areas in future. An analysis of major external factors affecting the future development of SMOPS indicates there will be labour shortages and increased wage rates, reduced subsidies and constant or rising olive oil prices. On the basis of these assumptions, four future scenarios are developed for the five target areas, with the help of a Linear Programming simulation model. The results are presented for two target areas. For the Trás-os-Montes target area in Portugal, three of the four tested scenarios point to a high level of abandonment, while in the most positive scenario the areas under semi-intensive low input and organic SMOPS increase. In the Granada and Jaen target area in Spain, all scenarios hint at intensification, and only the orchards on the steepest slopes are likely to be abandoned. The direction and extent of environmental effects (erosion, fire risk, pollution, water use and biodiversity) differ per scenario, as do the extent of cross-compliance and agri-environmental measures.