The Government has activated for the first time the temporary withdrawal of a part of olive oil production to prevent an abundant harvest from causing a collapse in the prices received by producers. The decision, published this Friday in the Official State Gazette (BOE), will force olive mills to keep 12% of the affected oil stored, about 188,000 tons according to estimates from the Ministry of Agriculture.
The measure responds to a request from agricultural organizations concerned about the fall in prices at origin and the increase in their costs. But it also raises a question for households that have been enduring the rising cost of living for years. By temporarily reducing the amount of oil available, the measure may curb part of the price drop, although it is not yet possible to know how much it will affect the bottle in the supermarket.
The National Commission for Markets and Competition (CNMC) already warned in October that this restriction could make the product more expensive and reduce the variety and quality of the offer. The body asked the Government to evaluate its effects, especially on lower-income consumers. FACUA has also rejected the decision and believes that it may hinder price reductions at origin from reaching store shelves.
FACUA considera escandaloso que el Gobierno 📉 frene las bajadas de precios del 🫒 aceite de oliva tras su inacción cuando estaba disparado https://t.co/oC6f2zJAD7
— FACUA (@FACUA) November 6, 2026
Why the oil is being withdrawn and until when
The obligation falls on the oil mills, the facilities where oil is extracted from olives. Each one must keep stored a quantity equivalent to 12% of its accumulated production declared from November onwards. The oil produced in October is excluded from the measure.
The product will remain off the market until September 30, 2027, in its own or third-party tanks. The oil mills will be able to choose which category of oil to immobilize and will have to declare the stored quantities. The Ministry plans to review the situation from December 31 and may reduce the percentage if the evolution of the campaign justifies it.
Agriculture estimates that Spain will produce 1,602,596 tons in the 2026-2027 campaign, 23% more than in the previous one. To this forecast are added 357,040 tons of initial stocks. The combination of both figures has exceeded the threshold established to activate the withdrawal, linked to the average of the previous six campaigns.
The Minister of Agriculture, Luis Planas, maintains that the measure will allow to give stability to the market and guarantee adequate remuneration to olive growers. Agricultural organizations had demanded it due to the fall in the price at origin and the increase in production costs. Agriculture defends that avoiding large oscillations also benefits consumers.
What can happen to the price of the bottle
The price at origin is what is paid for the oil before it reaches the consumer. The final price also includes packaging, transport, distribution and commercial margins. Therefore, a variation in the oil mill does not necessarily translate immediately or in the same proportion to the supermarket.
Without the withdrawal, a greater quantity of available oil could exert more downward pressure on prices at origin. If that drop reached the stores, families could buy cheaper oil, including extra virgin. The amount of savings would depend, among other factors, on the final harvest, demand and the decisions of the chain operators.
The approved measure precisely seeks to moderate that pressure on the prices received by producers. For households with adjusted incomes, this raises the risk that a good harvest translates into a smaller reduction than they could have found without the restriction. The CNMC asked to quantify that impact before applying the rule.
FACUA has described the decision as "scandalous" and reproaches the Government for not addressing its requests to limit prices when some extra virgin olive oil brands exceeded 15 euros per liter in 2023. The association now demands measures that facilitate access to basic foodstuffs at affordable prices.
The Ministry will monitor production and market evolution during the coming months. As of December 31, it may adjust downwards the quantity that olive mills must keep stored, based on new estimates and the observed effect on demand and price.
