Spain orders first-ever mandatory withdrawal of 12% of olive oil production

Spain’s Ministry of Agriculture, Fisheries and Food has ordered the first mandatory withdrawal of olive oil from the market in its history. The measure, published in the Official State Gazette on Friday 6 November, requires all olive mills to temporarily immobilise 12% of their monthly production during the 2026/2027 campaign.

The withdrawal covers approximately 188,000 tonnes, equivalent to 12% of each mill’s monthly output. The government says the step is needed because an exceptionally abundant harvest risks pushing farm-gate prices down. Mills may store the oil in their own facilities or in third-party warehouses.

“guarantee the profitability of farmers and also protect the interests of the olive oil buyer”

Each mill can decide which quality category to withdraw, choosing between extra virgin, virgin or lampante oil. In practice, this freedom allows mills to set aside lower-value grades while keeping more profitable batches on sale.

The resolution was signed by the Directorate-General for Agricultural Productions and Markets. It sets the withdrawal at 12%, below the 20% ceiling allowed under Spanish and European rules, and leaves open the possibility of adjusting the percentage from 31 December 2026 depending on how production evolves.

Official forecasts put the 2026/2027 harvest at 1,602,596 tonnes, 23% higher than the previous campaign and the fourth-largest on record. Mild spring temperatures and abundant rains supported flowering and fruit set.

Initial stocks add another 357,040 tonnes, 23.3% above last year’s level according to the Olive Oil Market Information System. Together, the harvest and stocks reach 120% of the average production of the previous six campaigns, the technical threshold that triggers compulsory withdrawal under marketing rules.

The withdrawn oil must remain in storage until 30 September 2027 unless the ministry changes the date based on storage results and market stabilisation. The ministry said the objective is to guarantee farmers’ profitability and protect olive oil buyers’ interests.