Spain to withhold 188 thsd tons of olive oil from market to support prices

Spain has decided to temporarily restrict olive oil supplies on the domestic market amid expectations of a significant increase in production. From November 6, 2026, producers are required to hold back 12% of their 2026/27 season output in storage until September 30, 2027. According to Spain’s Ministry of Agriculture, the measure will temporarily withdraw around 188 thsd tons of olive oil from the market and is intended to stabilize prices and prevent a sharp decline caused by excess supply.

Spain’s olive oil production in the 2026/27 season is forecast at 1.6 mln tons, up 23% from the previous season. If the forecast materializes, the country will record its fourth-largest harvest on record. Production has benefited from mild temperatures and abundant spring rainfall, which created favorable conditions for olive tree development and fruit formation.

The increase in supply follows several years of unstable production. In the 2022/23 and 2023/24 seasons, Spain experienced severe drought and heatwaves that sharply reduced olive harvests. The resulting shortage of raw materials pushed olive oil prices to record highs, prompting some European consumers to switch increasingly to cheaper sunflower oil. The recovery in production is gradually changing the market’s supply-demand balance.

According to Spain’s Ministry of Agriculture, temporarily restricting sales will help regulate the flow of olive oil onto the market and support price stability. Without such intervention, a significant increase in production could intensify downward pressure on prices and producers’ incomes. However, the measure does not involve reducing production or destroying stocks, but rather the mandatory storage of olive oil for a specified period.

Tags: Spain, olive oil