Spain has ordered its olive oil mills to store 12% of their production from November 2026, to stop producer prices from falling further, Euronews reports. It is the first time the world’s largest olive oil producer has used the measure, which is expected to keep about 188,000 tonnes off the market until the end of September 2027.
How the measure works
The measure was published on Friday in Spain’s Official State Gazette (BOE). It applies to the output each mill reports producing each month.
Mills can store the oil either at their own facilities or at a third-party site.
According to the Directorate-General for Agricultural Production and Markets, output reported for October and earlier months is excluded. The stored oil must stay off the market until 30 September 2027, the end of the season.
Strong harvest and high stocks
The decision comes as Spain expects a strong harvest and already holds high stocks. According to the resolution:
- Opening stocks: 357,040 tonnes
- Forecast production: 1,602,596 tonnes
Falling producer prices
The expected supply could push producer prices down further. According to El País, Spanish producers were receiving about €3 a kilo for extra virgin olive oil in early November, down from around €4 a kilo a year earlier.
When the government can act
The government can take oil off the market when opening stocks and forecast output together are at least 20% above the average of the previous six seasons. This season’s figures met that condition.
The Spanish agriculture ministry expects about 188,000 tonnes to be taken off the market.
Spain’s weight in the market
According to its agriculture ministry, Spain is the world’s largest olive oil producer and exporter. The ministry estimates that Spain accounts for about 45% of global production and 70% of EU production, although these shares vary from harvest to harvest.
Olive oil prices rose sharply in recent years after drought and heatwaves hit harvests, then fell as production recovered.
With information from Euronews
