Spain to hold back 188,000 tonnes of olive oil to stem fall in producer prices

The order, published in Spain’s Official State Gazette (BOE) on Friday, comes after weeks of warnings from farming organisations that prices no longer cover costs for many growers. The downturn marks a reversal from the 2022-23 and 2023-24 seasons, when drought and heatwaves cut harvests, drove olive oil prices to record highs and prompted many Spanish households to switch to cheaper alternatives such as sunflower oil.

‘The aim is to regulate supply in order to improve and stabilise the functioning of the market and the sector,’ the agriculture ministry said.

Bumper harvest and high stocks put pressure on growers

Regional authorities forecast that Spain will produce 1,602,596 tonnes of olive oil in the 2026-27 season, up 23% on the previous campaign. Mild temperatures and abundant spring rain helped olive trees flower. Spain also began the season with 357,040 tonnes in stock, up 23.3% on a year earlier, bringing projected domestic supply to nearly 1.96 million tonnes. 

Under the season’s marketing rules, the government can require mills to hold oil back when forecast production and opening stocks together reach at least 120% of the average combined total for the previous six seasons. This year’s figures met that threshold. Spain is the world’s largest producer and exporter of olive oil. Its agriculture ministry puts its share at around 45% of world output and 70% of EU production, although the proportions vary by harvest.

Spanish producers were receiving about €3 a kilo for extra virgin olive oil in early November, down from around €4 a kilo a year earlier, according to El País. Farming organisations ASAJA, COAG and UPA had warned that growers were operating at a loss. COAG puts production costs at €4.70 a kilo in traditional groves and €5.30 in mountain groves, and says costs have risen 57% since 2020 as diesel and fertiliser have become more expensive. 

Growers’ representatives also argued that imports were adding to the pressure on prices and storage capacity. They pointed to about 95,000 tonnes of oil brought in from outside the EU under duty-free quotas, including 70,000 tonnes from Tunisia and 19,000 from Morocco. The dispute led to a tractor protest in Madrid on 28 October. Cooperatives pressed the government to act sooner, while Agriculture Minister Luis Planas defended waiting for official figures.

Visiting an olive oil cooperative in Andalusia on Friday, Planas described traditional olive groves as ‘vital’ to Spain and said the measure had never been used before. ‘It has high production costs, and if prices fall below a certain threshold, there can indeed be problems with profitability,’ he told reporters.

How the storage requirement will work

Each mill must keep 12% of its cumulative declared production in storage, starting with oil produced in November. Output declared for October or earlier is exempt. Mills can choose which grades to set aside, including extra virgin, virgin or lampante oil, and can use their own tanks or a third-party facility.

Mills will report monthly output and closing stocks through Spain’s Olive Oil Market Information System (SIMO). A ministry-led technical group will agree on a monitoring plan, with regional authorities responsible for carrying out checks. Operators must keep records of the quantities withdrawn and where they are stored, and make them available for inspections. The ministry can revise the measure from 31 December 2026 in light of actual production and price trends.

Dcoop and Acesur agree €520m Deoleo Holding deal

Separately, Spanish olive oil groups Dcoop and Acesur have agreed to buy a controlling stake in Deoleo Holding, a subsidiary of listed group Deoleo, whose brands include Carbonell and Hojiblanca. The agreement values the whole subsidiary at €520 million, including debt. It covers 91.99% of the company, including listed Deoleo’s entire 50.99% stake.

Dcoop and Acesur plan to take equal stakes and could acquire full ownership if the remaining shareholders join the sale. The transaction requires regulatory clearance and approval from listed Deoleo’s shareholders. Deoleo shares fell 21.1% on Thursday following the announcement, which came after months of talks and a competing bid from Spain’s Migasa and Italy’s Coricelli.