Spain mandates olive oil storage to boost prices

The Spanish government orders oil mills to store 12% of production to stabilise the market following a significant drop in origin prices.

The has issued an order in the requiring oil mills to store 12% of their olive oil production from November 2026. This marks the first time has used this -authorised mechanism.

Current production is estimated at 1.6 million tons, reaching 120% of the six-year average. While the opposes the intervention, mills can choose which oil categories to withdraw to build reserves. Non-compliance fines may reach 10,000 euros per breach.

The measure aims to stabilise a market where prices at origin have dropped to 3.23 euros per kilo, below the 5 euro threshold farmers need to avoid losses. The government will re-evaluate these mandatory storage levels in 2027 based on demand and price shifts.