Spain Orders Farmers to Hold Back 12% of Olive Oil Output

Spain’s agriculture ministry has ordered farmers to hold back 12% of their olive oil production as a larger harvest approaches, seeking to stabilize the market in the world’s top-producing country.

Output is projected to rise 23% this season to about 1.6 million tons. That would make it Spain’s fourth-largest olive oil harvest on record. Favorable spring weather followed years of drought and heat that kept production low.

The ministry said the measure is intended to support farmers’ profitability and protect buyers’ interests. It said a more stable market would benefit producers and consumers.

The olive oil industry has objected to the measure, arguing that Spain’s order applies only to domestic producers while olive oil is traded globally.

The ministry aims to keep about 188,000 tons off the market. Farmers may store the oil on their farms or at third-party facilities until the end of September 2027.