Mandatory olive oil withdrawal in 2026/2027: what olive mills must do

Key data

Spanish olive mills face an unprecedented obligation in the 2026/2027 campaign: if the harvest turns out to be exceptionally high, the Ministry of Agriculture may require them to withdraw up to 20% of their estimated production from the market. The measure, regulated by the Order APA/1145/2026, published on 30 October 2026, applies Article 167 bis of the Regulation (EU) No. 1308/2013 and aims to prevent price collapse in the event of massive overproduction.

The mechanism is not automatic: it is activated only if initial stocks plus estimated production exceed 120% of the average of the six previous campaigns. If that threshold is reached, the Ministry will publish before 15 November 2026 the specific withdrawal percentage, which in no case can exceed 20% of estimated production.

What does this regulation establish?

Order APA/1145/2026 creates a mandatory olive oil withdrawal mechanism for the 2026/2027 campaign, in application of Royal Decree 84/2021, which establishes the basic national rules for applying Article 167 bis of the European single OCM Regulation.

The mechanism works as follows:

• Activation condition: initial stocks of the campaign plus estimated production must exceed 120% of the average of the six previous campaigns.
• Withdrawal percentage: the Ministry sets and publishes it before 15 November 2026; it cannot exceed 20% of each mill's estimated production.
• Storage obligation: withdrawn oil must be kept in storage until the following campaign, in own facilities or contracted to third parties.
• Monthly declaration: each mill must declare the withdrawn and stored oil in the SIMO system on a monthly basis.
• Control and coordination: autonomous communities are responsible for controls, with coordination from the Ministry of Agriculture.
• Measure review: from 31 December 2026 onwards, impact monitoring begins, and the measure can be reviewed as the market evolves.

Economic and operational impact

For olive mills, this regulation has direct consequences for cash flow, logistics and commercial planning:

• Product immobilization: up to 20% of estimated production is removed from the market for months, reducing available revenue in the campaign.
• Storage costs: if the mill does not have sufficient own capacity, it will have to contract external storage, with the financial and logistical cost that this entails.
• Administrative burden: the mandatory monthly declaration in SIMO requires having internal processes for recording and monitoring withdrawn oil.
• Uncertainty until 15 November: mills will not know the exact withdrawal percentage until that date, making it difficult to plan sales and contracts for the campaign.
• Possible downward revision: if the market improves before the campaign ends, the Ministry can review the measure, adding a component of regulatory uncertainty.

Who does it affect?

• Olive oil producing mills throughout Spain during the 2026/2027 campaign.
• Olive oil cooperatives that carry out milling and oil production activities.
• Companies with storage facilities that can be contracted by mills to store withdrawn oil.
• Financial managers and executives of companies in the olive oil sector who must plan cash flow and sales contracts for the campaign.
• Agricultural advisors and consultants who provide support to farms and mills in regulatory compliance.

Practical example

Suppose an Andalusian olive mill with an estimated production for the 2026/2027 campaign of 1,000 tonnes of olive oil. If the Ministry confirms that the 120% threshold has been exceeded and sets the withdrawal percentage at the maximum allowed of 20%, this mill will have to withdraw from the market 200 tonnes and keep them in storage until the following campaign.

Those 200 tonnes cannot be sold during the 2026/2027 campaign. The mill will have to:

• Determine whether it has its own storage capacity for those 200 tonnes or whether it needs to contract external facilities.
• Declare monthly in the SIMO system the volume stored.
• Monitor the possible revision of the measure from 31 December 2026 onwards, which could allow releasing part of the withdrawn oil before the campaign ends.

If the set percentage were lower, for example 10%, the mandatory withdrawal would be 100 tonnes, reducing by half the impact on cash flow and the storage capacity needed.

What should companies do now?

1. Verify if the threshold is activated: calculate whether initial stocks plus estimated production of the 2026/2027 campaign exceed 120% of the average of the six previous campaigns. If not exceeded, the regulation does not require any withdrawal.
2. Watch for 15 November 2026: the Ministry will publish before that date the exact withdrawal percentage. From that moment on, the obligation is firm.
3. Audit storage capacity: determine whether own facilities are sufficient to absorb the potential withdrawal volume (up to 20% of estimated production) or whether external storage needs to be contracted.
4. Prepare the SIMO declaration process: ensure that the internal recording system allows generating the required monthly declarations with data on withdrawn and stored oil.
5. Review sales contracts and cash flow planning: adjust campaign revenue forecasts taking into account that part of production could be immobilized until the following campaign.
6. Coordinate with the corresponding autonomous community: controls are the responsibility of the autonomous communities; it is advisable to know the verification procedure planned in each territory.
7. Monitor possible revisions: from 31 December 2026 the Ministry can modify the measure. Maintain active monitoring of regulatory updates.

Official source

Consult complete regulation in official source

Notice: 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-2026-22717