12% Production Retention: What Olive Oil Mills Must Do in 2026/2027

Key data

Spanish olive oil mills have a new immediate operational obligation for the 2026/2027 campaign: retain 12% of their monthly olive oil production without being able to market it. The measure, published in the BOE on November 6, 2026 through the Resolution of the General Directorate of Agricultural Production and Markets, is activated in response to a market with excess supply and enters into force on the same day of its publication.

The mechanism is provided for in article 5 of the Order APA/1145/2026 and is based on Royal Decree 84/2021, which develops article 167 bis of Regulation (EU) No. 1308/2013 of the European Parliament and of the Council. It is not a new measure in the sector, but its specific activation for this campaign requires immediate action.

What does this regulation establish?

The resolution determines the mandatory withdrawal percentage provided for in Order APA/1145/2026. The mechanism works as follows: when estimated production plus initial stocks exceed 120% of the historical average, the obligation to retain part of the production is activated to reduce pressure on the market.

The key elements established by the regulation are as follows:

• Retention percentage: 12% of the monthly production declared by each mill.
• Time scope: from November 2026 to September 30, 2027. Production declared in October 2026 or earlier months is excluded.
• Storage location: own or third-party facilities, at the operator's choice, as long as it can be proven.
• Continuous accreditation: operators must be able to demonstrate compliance at any time to the competent authority, providing documentation on quantities withdrawn and facilities used.
• Monitoring: a technical monitoring group is created with participation from the autonomous communities to monitor the implementation of the measure.
• Percentage review: the 12% can be modified during the campaign according to market developments.

Economic and operational impact

The 12% retention means that, for every 100 liters produced per month, 12 liters cannot be sold while the measure is in effect. This has direct consequences for the cash flow and logistics of each mill:

• Capital immobilization: retained oil does not generate income during the storage period, which can strain liquidity, especially in cooperatives and small mills with tight margins.
• Storage costs: if the mill does not have sufficient own capacity, it will have to contract external storage, with the additional cost that entails.
• Document management: the obligation to prove at all times the quantities withdrawn and the facilities used requires an updated and accessible registration system for inspection.
• Uncertainty about the percentage: the 12% is the initial value, but the regulation provides that it may be modified. Mills must be prepared to adjust their planning if the percentage changes during the campaign.

At the sector level, with estimated production of 1.6 million tonnes, the measure implies retaining potentially up to 192,000 tonnes of oil off the market during the campaign.

Who does it affect?

• Olive oil mills (cooperatives, agricultural processing societies and private companies) that produce olive oil in Spain during the 2026/2027 campaign.
• Operators in the olive oil sector that declare monthly production from November 2026 onwards.
• Warehouse operators that provide storage services to mills to comply with mandatory retention.
• Autonomous communities with control and monitoring responsibilities, which participate in the technical group created by the regulation.

Production declared in October 2026 or in months prior to the start of the application period is not affected.

Practical example

A mill that in December 2026 declares a production of 500 tonnes of olive oil must retain 12% of that amount, that is, 60 tonnes, which it will not be able to market that month.

If that same mill produces 500 tonnes each month during the 11 months of the period (November 2026 to September 2027), the accumulated retention would amount to 660 tonnes immobilized throughout the campaign. If the average price of extra virgin olive oil is around €4/kg, the value of retained oil in that scenario would exceed €2.6 million in immobilized capital.

The mill must document month by month the quantities retained, the storage location (own or contracted) and have that information available for any inspection by the competent regional authority.

What should companies do now?

1. Verify if you are obligated: if your mill declares monthly production from November 2026 onwards, the 12% retention applies to you from now on. Production from October 2026 or earlier is excluded.
2. Calculate the volume to retain: on each monthly production declaration, apply the 12% to know exactly how many tonnes you must keep stored that month.
3. Ensure storage capacity: check if you have sufficient own space. If not, contract external storage and document the contract and location of the facilities.
4. Implement a document registration system: create or update your registration system to reflect month by month the quantities withdrawn, the facilities used and the supporting documents available for inspection.
5. Monitor possible changes in the percentage: the regulation allows modification of the 12% during the campaign. Subscribe to regulatory alerts to detect any changes and adjust your planning immediately.
6. Coordinate with your autonomous community: the technical monitoring group includes the autonomous communities. They are the ones who will control compliance. Contact your competent regional body to learn about the specific accreditation procedure in your territory.

Official source

Consult complete regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-23330