Spanish producers call for withdrawal of up to 20% of olive oil from market amid falling prices

Spain expects a significant increase in olive oil production in the MY 2026/27, potentially adding pressure on domestic and global prices. According to the government’s forecast, production could reach 1.6 mln tons, up 23% from the previous season. Amid expectations of rising supplies, local agricultural organizations are calling for the temporary withdrawal of up to 20% of olive oil production from the market to prevent further price declines.

According to Spanish agricultural associations ASAJA, COAG, UPA and Cooperativas Agro-alimentarias, total available olive oil supplies in the country, including stocks, could reach around 2.2 mln tons. The organizations have asked the Ministry of Agriculture to introduce a mechanism for temporarily restricting sales. The proposal would not involve destroying olive oil but rather storing part of the production to reduce volumes entering the market.

Rising production is already being accompanied by declining olive oil prices. According to local media reports, the average retail price of supermarket own-brand olive oil stood at around €7.99 per bottle in September, but prices have since fallen by approximately €3 in some cases. Meanwhile, farmers say producer prices are declining much faster than retail prices, leaving some growers struggling to cover production costs.

Agricultural organizations argue that temporarily withholding part of the olive oil supply would help balance supply and demand and support producer profitability. However, Spain’s competition authority has warned of potential negative consequences for competition and consumers. Restricting available supplies could limit further reductions in retail prices.

Spain accounts for nearly half of global olive oil production, making developments in its domestic market important for international trade. The expected increase in output could expand export availability while also intensifying competition and downward pressure on prices. For now, the proposed temporary withdrawal of olive oil from the market remains an initiative of agricultural organizations and requires a final decision from the government.

Tags: Spain, olive oil