Spain Orders Farmers to Withdraw 12 per Cent of Olive Oil After Bumper Harvest
The ministry said the step will remove about 188,000 tonnes from the market as Spain expects a 23% rise in production.
- 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.
128 Articles
128 Articles
To Beat Soaring Prices, Spain Makes Move on Its 'Liquid Gold'
Spain is trying a new way to put a floor under plunging olive oil prices: Keep some of its oil off the market. The nation's Agriculture Ministry on Friday ordered thousands to stay 12% of this season's production after a bumper crop and large leftover stocks drone prices for the...
In response to the abundance of the harvest, the Spanish authorities requested the storage of 12% of olive oil production until the autumn of 2027, or 188 000 tonnes. A measure announced by decree, which aims to prevent price collapse.
leprogres.fr
The production of olive oil in Spain is rising sharply, driven by heavy rains in the spring and mild temperatures. The government has imposed the storage of part of this production, in order to avoid too large price variations.
Spain intends to temporarily store 188,000 tonnes of olive oil, which is intended to prevent further price slippage.
From November 2026, oil mills will have to remove 12 percent of their monthly production to storage.
The Spanish government has decided to limit its exports of olive oil because of the influence of global warming on olive production in the country.
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