Spain tells olive mills to hold back 12% of oil

Spain’s Agriculture Ministry has told olive mills to store 12% of their declared November output. The order appeared in the BOE on Friday 6 November.

This is the first use of Spain’s olive oil withdrawal rule. The oil must stay off the market until 30 September 2027.

The duty starts with output declared for November. Early oils made in October are not covered. Mills may choose which grade of oil they store.

A large crop and high stocks

Regional forecasts put output for the 2026/2027 season at 1,602,596 tonnes. That would be 23% more than in the last season. The ministry says it would rank as the fourth largest crop on record.

Mild weather and good rain in spring helped flowers and fruit grow in key olive areas. Stocks at the start of the season were also high. They stood at 357,040 tonnes, up 23.3% from a year earlier.

Those stocks and the crop forecast add up to 1,959,636 tonnes. The sum reaches 120% of average output over the prior six seasons. That met the level needed to use the rule.

The ministry puts the amount to be stored at 188,000 tonnes. The sector gives a rounded estimate of about 190,000 tonnes.

Falling prices split the sector

Extra virgin oil at source has fallen to just over €3 per kilo. That is a drop of 9% in a little over one month. Reports say this price does not cover farm costs.

Growers and producers support the step as a way to protect prices and income. Mill groups and private industry oppose it. They say storage will add costs and may put some firms at risk.

Checks and scope

Mills can use their own tanks or space run by another firm. They must tell the authority how much oil they hold and where it is kept. They must also provide records and allow site checks when asked.

A technical group led by the ministry will agree a control plan. Regional governments will carry out the checks. The order can change from 31 December 2026 if the crop develops differently.

Source: elDiario.es and El Español