Spain orders olive oil mills to store 12% of output to curb market supply

Spain's government has ordered olive oil mills to store 12% of their production starting in November 2026, temporarily removing part of the oil from the market. The measure was published on Friday in the country's Official State Gazette (BOE). It applies to the output that each mill reports producing each month.

Mills may keep the oil at their own facilities or at a third-party site. The Directorate-General for Agricultural Production and Markets said the requirement excludes output reported for October and earlier months. The stored oil must stay off the market until 30 September 2027, when the season ends.

Why the decision was taken

Spain expects a strong harvest and already holds high stocks. According to the resolution, opening stocks were 357,040 tonnes, while production is forecast at 1,602,596 tonnes. That supply could push producer prices down further. According to El País, producers were getting about €3 a kilo for extra virgin olive oil in early November, compared with around €4 a year earlier.

The government may withdraw oil from the market when opening stocks and forecast output together are at least 20% above the average of the previous six seasons. This season's figures meet that condition. The agriculture ministry expects about 188,000 tonnes to be taken off the market.

The ministry says Spain is the world's largest olive oil producer and exporter, accounting for about 45% of global output and 70% of EU output, although these shares vary by harvest. Prices rose sharply after drought and heatwaves hit harvests in recent years, then fell as production recovered.

A major deal in the sector

At the same time, Spanish companies Dcoop and Acesur have agreed to acquire Deoleo Holding, a subsidiary of the listed olive oil group Deoleo. Deoleo describes itself as the world's largest branded olive oil company, with brands including Carbonell and Hojiblanca. The deal values all of Deoleo Holding at €520mn, including debt.

The agreement covers a 91.99% stake, including Deoleo's entire 50.99% holding. If the remaining shareholders join the sale as expected, the buyers could acquire 100%. Acesur said the two buyers plan to take equal stakes. The deal needs regulatory approvals and a vote by Deoleo's shareholders. Deoleo shares closed 21.1% lower on Thursday after the announcement. The deal followed months of negotiations and a rival bid from Spain's Migasa and Italy's Coricelli.