Spain is introducing an unprecedented intervention in its olive oil market, withdrawing approximately 188,000 tonnes, or 12% of this year’s bumper harvest, from circulation. Supported by the European Union, the measure will store surplus production for release during future years when harvests are weaker. The goal, according to The Olive Press, is to prevent prices from collapsing, as farmers currently receive around €3 per kilogram for extra virgin olive oil while production costs can reach €5.
Farmers’ organizations have welcomed the move, arguing that it could stabilize prices and protect growers from operating at a loss. However, some groups believe the withdrawal should have reached 20% of production to provide sufficient relief, particularly for traditional olive farms facing rising fuel and fertilizer costs.
The intervention has faced opposition from olive oil bottlers and exporters, who warn that restricting supply could hurt competitiveness and increase prices for consumers. Spain’s competition watchdog has also raised concerns that the measure could distort the market, weaken competition, and discourage improvements in product quality.