The Spanish government has brought a mandatory market measure for olive oil into force. Under the order published in the Boletín Oficial del Estado mills must, from the production declared for the month of November 2026 store 12% of their respective declared quantities. These stocks must be kept off the market until 30 September 2027 The requirement does not apply to production declared up to October 2026.
The measure is justified by high opening stocks for the current campaign and current harvest estimates, which point to exceptionally high availability in the 2026/27 marketing year. The Ministerio de Agricultura, Pesca y Alimentación puts expected output for the campaign at around 1.6 million tonnes of olive oil. The oil may be stored in the producers’ own facilities or in external storage.
The order is based legally on Orden APA/1145/2026, Real Decreto 861/2018 and relevant provisions of the Common Market Organisation. Implementation is the responsibility of the Dirección General de Producciones y Mercados Agrarios. The situation is due to be reviewed on 31 December 2026; the quota may be adjusted if production and stock trends make this necessary.
The quota would temporarily remove around 188,000 tonnes from the market nationwide. The government is responding to tensions arising from the contrast between two poor campaigns in 2022/23 and 2023/24 and the high volumes now expected. At the time, poor harvests drove producer and retail prices to record levels. For 2026/27, producers fear a sharp fall in prices at origin, while processors and retailers point to adequate security of supply and stable selling prices.
The competition authority, the CNMC had previously warned of possible negative effects from restricting supply through state intervention. The ministry, by contrast, points to the measure’s limited duration and the planned review as ways to limit distortions. The impact of storage on producer prices, wholesale markets, export flows and consumer prices will depend on the actual harvest, domestic and overseas demand, and any decisions by European institutions. Following the first review at the end of December, the government may keep, reduce or lift the quota if the market situation warrants it.
Editor: Daniel Mayer (Article created with AI assistance).