Spain holds back 12% of new olive oil

Spain's Agriculture Ministry published its first use of a mandatory olive oil storage rule on Friday 6 November. Each mill must hold 12% of the output it declares from November.

The plan will keep about 188,000 tonnes off sale until 30 September 2027. Oil declared for October 2026 or earlier is not covered.

Why the rule was triggered

The ministry says the harvest and stocks are large enough to unsettle the market. Opening stocks for the 2026/2027 season were 357,040 tonnes. That was 23.3% more than a year earlier.

The official crop forecast is 1,602,596 tonnes. Added to the opening stock, it took supply above the level set in the rule. That level is 120% of the average for the past six seasons.

The ministry says the aim is to steady supply and help the market work better. It will not pay mills for the cost of storage. The amount held back can be changed from 31 December if actual output is different.

How storage will work

Each mill must meet the 12% rate on its total declared output from November onwards. It may choose which type of oil to keep back. Storage can be at its own site or in another firm's tanks.

The oil must be easy to identify and track. Mills must keep records on the amount and the place where it is stored. They must also allow checks on site.

Regional authorities will carry out those checks under a plan led by the ministry. A technical group will watch how the rule works.

Support and opposition

Farm groups had sought such a tool for years. UPA Andalucía's Jesús Cózar called the move historic. He said oil was selling for about €3 a kilo, while most farms need €4.50 to make a profit.

That pressure comes as costs have risen. The Spanish Association of Olive Municipalities puts the rise in average output costs at close to 57% in six years.

Packers oppose the rule. Anierac says it will take the measure to court, though it has not named the body that will hear its case. The group says it accounts for 65% of packed olive oil in Spain.

Spain's competition watchdog, the CNMC, warned that less supply could hurt buyers and competition. It cited risks to prices, choice and quality. Consumer group Facua also criticised the move. It said the state did not step in during the price surge of 2023, when some extra virgin brands cost more than €15 a litre.

Sources: BOE, ABC, El Mundo and infoLibre.