Spain olive oil storage mandate to support prices, Digi Mart USA News (Spain): Spain’s Ministry of Agriculture has ordered that 12% of olive oil production be placed in storage, a decision that will remove about 188,000 tonnes of olive oil from the market, the ministry said in a statement.
The ministry said the measure aims to regulate supply in order to improve and stabilize the functioning of the market and the sector. The storage obligation will apply to the cumulative monthly production of each olive mill, regardless of the oil category.
Spain is the world’s leading olive oil producer, accounting for roughly 40% of global production, according to the International Olive Council. Favorable spring weather, with mild temperatures and abundant rain, has created conditions for what is expected to be the fourth-largest harvest in Spain’s history.
The ministry forecasts production of 1.6 million tonnes of olive oil for the 2026-2027 season, a 23% increase over the previous season. Producers will remain free to choose which type of oil to store and to use their own facilities or outside warehouses.
The government said the measure could be modified from December 31, depending on how production develops.
During a visit on Friday to an olive oil cooperative in Andalusia, Spain’s main olive oil producing region, Agriculture Minister Luis Planas described the traditional olive grove as vital to the region and to the country as a whole. “It involves high production costs and, if prices fall below a certain threshold, profitability problems can indeed arise,” Planas told journalists.
The minister said the storage measure had never been applied before.
Spain’s olive oil market has recovered from a period of low production caused by drought and heat waves during the 2022-2023 and 2023-2024 seasons, when prices reached record levels. That sharp price increase led many Spanish households to switch to cheaper alternatives such as sunflower oil.
