Spain intervenes and removes olive oil from the market to prevent price drop

Spain is the largest olive oil producer globally, with this season's harvest expected to exceed last year's. This increase in supply, combined with existing stocks, is driving prices down. Currently, Spanish olive farmers receive just over 3 euros per kilogram for extra virgin olive oil, down from around 4 euros last year. To manage the surplus, the Spanish Ministry of Agriculture announced that producers must store about 188,000 tons of olive oil until September next year. This measure aims to stabilize prices, but the Spanish competition authority warns it could reduce competition and potentially raise consumer prices. The impact on supermarket prices remains uncertain, as they depend on various factors.