Spain boosts olive oil storage to curb price drop

Spain's Ministry of Agriculture, Fisheries and Food has decreed mandatory storage of 12% of the monthly olive oil production declared by mills, aiming to remove 188,000 tonnes from the market until September 30, 2027, and prevent oversupply from crashing prices.

The Ministry published an order in the Official State Gazette (BOE) requiring mills to retain **12%** of their declared monthly olive oil production. The measure, which began applying to November's declared production, will keep these volumes off the market until **September 30, 2027**. In total, the temporary withdrawal affects **188,000 tonnes** of oil.

## A harvest 23% larger than the previous one

Data estimated by autonomous communities point to an olive oil production of **1,602,596 tonnes** for the 2026/2027 campaign. This is **23%** more than the previous campaign and would make this the fourth-largest harvest on record. Spring weather conditions in major olive-growing areas, with mild temperatures and abundant rainfall, allowed for good flowering and fruit set.

This rising production is added to initial campaign stocks of **357,040 tonnes**, **23.3%** higher than the previous campaign, according to the Olive Oil Markets Information System (SIMO), which collects operator data and was published by the Ministry on **October 28**.

## Why oil is withdrawn during a good harvest

The logic behind the measure is contrary to what consumers usually expect. With more oil on the market, prices tend to fall, harming olive growers who have not yet sold their production. The Ministry justifies the mandatory withdrawal as necessary to prevent market distortions and ensure stability, according to the statement released with the order.

The mechanism does not destroy the oil: it sets it aside. Mills must store it in their own or third-party facilities, and it cannot return to the commercial circuit until September 2027. It is a public intervention on supply that shifts the cost of sustaining prices to taxpayers and the sector.

## What it means for oil prices

The withdrawal of **188,000 tonnes** represents a significant portion of the sector's monthly production, although the final impact on prices will depend on how demand evolves and whether the harvest confirms estimates. The order comes after several campaigns of high prices and a pogre recovery in production, and the sector now looks at the market with its eyes on September 2027, when those withdrawn volumes will become available again.