A shopper picks up a bottle of olive oil as Spain intervenes in the market. Credit: Gleb Usovich / Shutterstock
Hoping for cheaper olive oil in Spain? The government has intervened in the market, ordering olive mills to keep 12% of new production off sale until September 2027. That could slow further price falls, although the effect on supermarket bills is not yet clear.
What does the order mean?
The rule applies to olive mills across Spain. Each mill must store 12 per cent of its declared production from November onwards. Mills can choose which category of olive oil to store and can use their own facilities or hire storage elsewhere. October’s production is not included.
The oil must remain off the market until the end of the current commercial campaign. The official order published in Spain’s Official State Gazette says the government can review the measure as production figures develop.
Could this affect the price you pay?
The order does not set supermarket prices. Its purpose is to limit supply and stabilise the olive oil market. That may help support prices for farmers, but it could also make it harder for lower prices at source to reach shoppers.
That concern was raised by Spain’s competition authority, the CNMC. In its assessment of the plan, it warned that removing oil from the market could push prices up and reduce the variety and quality available to consumers.
Euro Weekly News recently reported that olive oil prices at source had fallen while supermarket bottles were still costing more than €4 a litre. The latest decision adds a new complication for shoppers hoping to see cheaper bottles on the shelves.
What could Spain’s decision mean for UK olive oil prices?
British shoppers could have a stake in Spain’s decision too. The UK imported nearly 30,000 tonnes of Spanish virgin olive oil in 2025, about 62 per cent of its imports in that category. Holding back some of this season’s production may tighten supply for British buyers, but it is too soon to say whether supermarket prices will rise.
Why is the oil being stored?
The government says the measure is designed to prevent a large harvest from creating excess supply and destabilising the market. Farmers have also been concerned that falling prices could leave them selling below the cost of production.
The effect on supermarket prices is not yet known. The government will monitor the market and can adjust the amount held in storage as new production figures become available. For shoppers, the key question is whether lower prices at source will still reach the till while a share of this season’s oil remains off the market.
