Spain orders olive oil mills to store 12% of output, taking about 188,000 tonnes off the market
Serguey Asael Shinder1 min readSpain has ordered olive oil mills to store 12% of the oil they produce from November 2026 and keep it off the market until 30 September 2027, the end of the season, Euronews reports. The measure was published on 6 November in the Official State Gazette and is the first time Spain has used it. The agriculture ministry expects it to remove about 188,000 tonnes from the market.
The obligation applies to each mill's reported monthly output, excluding October and earlier months, and the oil can be stored at the mill or at a third-party site. The government can use the tool when opening stocks and forecast production together exceed the average of the previous six seasons by at least 20%. This season qualifies: according to the resolution, opening stocks stood at 357,040 tonnes and production is forecast at 1,602,596 tonnes.
The aim is to stop producer prices falling further. Citing El País, Euronews reports that Spanish producers were getting about 3 euros a kilo for extra virgin olive oil in early November, against around 4 euros a year earlier. Prices rose sharply after droughts and heatwaves cut recent harvests, then fell as production recovered. Spain accounts for about 45% of world output and 70% of EU output, by the ministry's estimate. In the same week, Dcoop and Acesur agreed to buy Deoleo Holding in a deal valuing it at 520 million euros including debt; Deoleo's shares closed 21.1% lower after the announcement.
What it means
Taking supply off the market is a price floor by other means, and its cost falls on consumers who had only just seen olive oil prices come down. Whether the stored oil returns quietly in autumn 2027 depends on the next harvest.