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Major agricultural organisations in Spain are calling for urgent government intervention to remove up to one-fifth of the country's olive oil production from the market. The move is intended to prevent a total price collapse as forecasts of a bumper harvest continue to drive market values downward. Spain produces nearly half of the world's olive oil, and the current surge in production is threatening the financial viability of its farming sector.
The organisations ASAJA, COAG, and UPA, together with Cooperativas Agro-alimentarias, have formally requested the Ministry of Agriculture to activate a mechanism for the temporary storage of 20 per cent of available oil. This measure is not designed to destroy the surplus but to withhold it from the market until supply levels normalise and prices stabilise.
This plea comes as Spain prepares for a massive 2026/27 season, with government estimates predicting a harvest of 1.6 million tonnes—a 23 per cent increase compared to the previous year. Industry bodies believe the total volume of oil available could reach as high as 2.2 million tonnes. While this is positive news for retail consumers, who have seen supermarket prices drop from an average of €7.99 to around €5.00 in some regions, producers are facing a different reality.
Farmers warn that farm-gate prices are plunging significantly faster than retail prices. Many producers report that the current rates no longer cover basic operational overheads, including rising fuel costs. The agricultural unions argue that temporary storage is the only way to provide 'breathing room' for the industry.
However, the proposal faces opposition from Spain's competition authority, which cautioned that restricting supply could harm consumers and limit further price reductions. The situation underscores the ongoing friction in the Spanish olive oil sector: balancing the consumer's need for affordable prices after years of inflation against the farmer's need for sustainable earnings.
المصدر: Olive Press News Spain
Source: Olive Press News Spain