Why Spain Is Taking 188,000 Tonnes of Olive Oil Off the Market
Mills must hold back 12% of declared output as the government tries to curb oversupply and steady olive oil prices.
- The Spanish government ordered mills nationwide to store 12% of newly declared olive oil production from November onwards, keeping supply off the market until September 2027 to stabilize price volatility.
- Concerns raised by the CNMC regarding farmers selling below production costs drove this intervention to prevent a large harvest from destabilizing the market. Falling prices created pressure despite high retail costs.
- According to the Official State Gazette, mills must store 12% of declared output from November onwards, though October's production is excluded and producers retain flexibility to choose storage categories and facilities.
- Euro Weekly News recently reported that at-source olive oil prices have fallen while supermarket bottles still cost more than £4 per litre, though the government order does not set retail prices.
- Nearly 30,000 tonnes of Spanish virgin olive oil were imported in 2025, representing about 62 per cent of total imports in that category, signaling potential ripple effects across international supply chains.
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The unprecedented decision, which is valid until the end of September 2027, has caused reactions - Analyst warns that long-term storage can degrade the quality of extra virgin olive oil, to the point where it no longer meets the specifications of its category
Why Spain is taking 188,000 tonnes of olive oil off the market
The world’s biggest olive oil producer is holding back 12% of its output from November to stop producer prices falling further. It’s the first time Spain has used the measure, which is expected to keep about 188,000 tonnes off the market until the end of September 2027.
The mills will have to store 12% of the olive oil they produce from November until 30 September 2027. This is the measure decreed by the Ministry of Agriculture, Fisheries and Food against the bulging level of initial stocks of the 2026/2027 campaign and high production estimates. The objective of the intervention, which was made public this Friday in the BOE, is to “regulate the supply to improve and stabilize the functioning of the sector”, ac…
We will have a great harvest, but the executive forces the mills to keep 12% of their production until September 2027.
The Ministry of Agriculture activates for the first time the withdrawal of part of the oil production to prevent the price from collapsing. Specifically, the department headed by Luis Planas has formalized this Friday the withdrawal of part of the olive oil production due to an excess of supply and thus try to stabilize prices. The mechanism drawn up by the central executive involves withdrawing 188,000 tons of olive oil from the market (12% of …
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