So much 'liquid gold' could hit the market that the world’s top producer is withholding output

Spain has ordered olive oil mills to store 12% of their production from November 2026 to regulate supply by temporarily taking some oil off the market. Euronews.com reported that the measure was published in Spain's Official State Gazette (BOE) and applies to the output each mill reports producing each month. Mills can store the oil at their own facilities or at a third-party site. According to the Directorate-General for Agricultural Production and Markets, the measure excludes output reported for October and earlier months. The stored oil must stay off the market until September 30, 2027, the end of the season.

Fortune reported that Spain's agriculture ministry stated the measure aims to ensure farmers' profitability and protect buyers' interests, bringing greater stability to the market. Spain expects a strong harvest and already has high stocks. The resolution noted that opening stocks stood at 357,040 tonnes, while production is forecast to reach 1,602,596 tonnes. Fortune noted production is projected to jump 23% to 1.6 million tons, marking the fourth-largest harvest ever. The government can take oil off the market when opening stocks and forecast output together are at least 20% above the average for the previous six seasons, a condition met this season. The agriculture ministry expects about 188,000 tonnes to be taken off the market.

Spain is the world's largest olive oil producer and exporter, accounting for about 45% of global production and 70% of EU production, according to its agriculture ministry. Olive oil prices rose sharply after drought and heatwaves hit harvests in recent years, then fell as production recovered. El País reported Spanish producers were getting about €3 a kilo for extra virgin olive oil in early November, down from around €4 a kilo a year earlier. Fortune reported prices at mills in Andalusia averaged 2.93 euros per kilogram last weekend, down about 15% in about two months. Kyle Holland, senior analyst at Expana, told the Financial Times that olive oil degrades over time and quickly loses extra virgin status in storage, adding that top buyers already have hefty supplies so the storage order would have little immediate impact on prices. Meanwhile, Spanish companies Dcoop and Acesur agreed to acquire Deoleo Holding in a deal valuing Deoleo Holding at €520 million including debt, though Deoleo shares closed 21.1% lower on Thursday after the announcement.