Spain olive oil marketing restriction 188,000 tonnes, Digi Mart USA News (Spain): Spanish olive oil producers have received an order from the Ministry of Agriculture not to market part of their production, according to information from the Financial Times, as reported by BFM Business. In a decree published on Friday, authorities ordered growers not to sell “12% of their annual production” until the end of September 2027, with no financial compensation.
According to the British newspaper, the purpose is to “guarantee the profitability of farmers and protect the interests of olive oil buyers.” The goal is to contain falling prices as this year’s harvest is expected to be “exceptional.” The world’s leading producer forecasts a 23% increase this season, with 1.6 million tonnes harvested.
Olive oil prices have been declining for several weeks. “According to the regional government, prices at mills in Andalusia averaged 2.93 euros per kilogram in the week ending November 1, a drop of about 15% since early September,” the Financial Times reported.
The government intervention was described as “risky” by the Spanish competition authority, and the olive oil sector has expressed concern that the solution is “too simplistic.”
The Ministry of Agriculture estimates the volume of unsold olive oil at 188,000 tonnes. Farmers are permitted to store this unsold production on their farms or in storage facilities.
