Why does the Government intervene in the olive oil market when prices are low?

The Spanish government has intervened in the olive oil market for the first time, ordering the withdrawal of 188,000 tons to stabilize prices amid a surplus. This decision comes after a record harvest, with production expected to reach 1.6 million tons, a 22.7% increase from the previous year. While low prices benefit consumers, they threaten the profitability of small and medium producers, prompting the intervention. The measure, supported by agricultural organizations, allows mills to choose which category of olive oil to withdraw. The withdrawal will last until September 30, 2027, as part of EU regulations.