Spain orders olive oil producers to store 12%

Spain has ordered olive oil producers to withdraw 12 percent of their production from the market and store it until September 2027 to prevent a large harvest from pushing prices down.

The agriculture ministry said Friday the order would remove about 188,000 tonnes of olive oil from the market. It said the aim was to regulate supply and stabilise the sector.

Spain expects its fourth-largest olive oil harvest on record after mild temperatures and abundant spring rainfall. The ministry forecasts production of 1.6 million tonnes in the 2026-2027 season, up 23 percent from the previous season.

The storage requirement will apply to each mill's cumulative monthly production, regardless of oil category. Producers may choose which type to store and whether to use their own or external facilities.

The government said the measure could be modified from December 31 depending on how production develops.

The market has recovered from low output caused by drought and heatwaves in the 2022-2023 and 2023-2024 seasons, when olive oil prices rose to record levels and many Spanish households switched to cheaper alternatives such as sunflower oil.