The olive oil industry in Spain is about to undergo a significant change. On November 6, 2026, the Spanish government mandated the storage of 12% of the monthly declared olive oil production for the 2026/2027 campaign, starting from that month. This move is aimed at preventing market distortions and ensuring stability. The decision comes as the industry prepares for a 23% increase in production, driven by favorable weather conditions, according to the Ministry of Agriculture, Fisheries and Food.
The olive oil sector in Spain has been experiencing a boom. According to the data from the autonomous communities, the forecasted production for the 2026/2027 campaign stands at 1,602,596 tons, a 23% increase from the previous campaign. This surge is largely attributed to the favorable weather conditions of the previous spring, which saw mild temperatures and abundant precipitation, promoting a successful flowering and fruiting cycle. The Ministry of Agriculture, Fisheries and Food has highlighted that these conditions have contributed to making this the fourth largest olive oil production campaign in history.
The storage mandate, detailed in a resolution published in the Official State Gazette (BOE), is a preventive measure designed to manage the supply and demand dynamics of olive oil. The government aims to ensure that the market remains stable, protecting the interests of farmers and consumers alike. The measure will affect 188,000 tons of olive oil, which will be removed from the market until September 30, 2027.
For producers, the mandate provides a safety net, ensuring that they can continue to invest in their operations without the fear of a market crash.
The storage mandate will be implemented in a structured manner. According to the resolution, the mandatory withdrawal will begin to be applied to the production declared in this month of November. This means that from November 2026, olive oil producers will be required to set aside 12% of their monthly production. The storage will last until September 30, 2027, ensuring that the market remains stable during the entire campaign.
For consumers, the storage mandate is expected to have a stabilizing effect on prices. By removing a significant portion of the olive oil from the market, the government aims to prevent a price collapse that could have occurred due to the expected surplus. For producers, the mandate provides a safety net, ensuring that they can continue to invest in their operations without the fear of a market crash. The Ministry of Agriculture, Fisheries and Food has emphasized that this measure is necessary to protect the interests of all stakeholders in the olive oil industry.
As the 2026/2027 campaign begins, the olive oil industry in Spain is poised for a period of significant change. The storage mandate is just one of the measures the government is taking to ensure the industry's stability and sustainability. With the production forecasted to be the fourth largest in history, the industry faces both opportunities and challenges. The storage mandate is a proactive step to address the market dynamics and protect the interests of all stakeholders.