Spain Withdraws Olive Oil from Market Amid Record Harvest

November 6, 2026 · Bloomberg HT

Spain is activating its product storage mechanism to prevent a record 2026/27 olive oil harvest and rising stocks from driving down prices.

Record Harvest and Stocks

Mild and rainy spring weather in Spain's main olive-producing regions strongly supported flowering and fruit set on trees. According to regional harvest estimates, the country's olive oil production is expected to rise by 23% to 1,602,596 tons in the 2026/27 season compared to the previous season. If realized, this would be the fourth-highest season yield on record. These production leaps are compounded by carry-over stocks. Data from the Spanish Ministry of Agriculture, Fisheries, and Food shows the country is entering the new season with 357,040 tons in reserves, 23.3% higher than the start of the previous season.

Conditions for the Withdrawal Mechanism

To prevent oversupply from driving down producer prices, the Spanish Ministry of Agriculture, Fisheries, and Food published a decision in the Official State Gazette on October 30th, aiming for price stability. The regulation, which covers all olive oil processing facilities nationwide, intends to keep a portion of the harvest off the market until the end of the season. The system's activation is based on two main indicators: the season's opening stock and estimated total production must reach 120% of the average calculated for the same period over the previous six seasons.

New Calendar for Price Stability

The quantity of olive oil to be withdrawn from the market will be calculated monthly based on the total volume produced from the start of the season up to that date. Producers will have the discretion to decide which quality category of olive oil will fulfill this storage obligation. The Spanish Ministry of Agriculture, Fisheries, and Food will finalize the exact percentage of olive oil to be kept off the market until the end of the 2026/27 season before November 15th. This percentage may be adjusted based on the progress of the storage process and market dynamics. The Madrid administration plans to prevent income loss for producers through this intervention.

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