Spain Olive Oil Prices Hit 5-Year Low in 2026

Olive oil prices in Spain have fallen to about €3.10 per kilogram at the mill gate, the lowest level in five years, as a larger 2026 harvest and soft demand push wholesale prices well below what shoppers still pay at the till.

The price, equivalent to roughly €2.85 a litre, is down from €4.50 per kilogram at the start of the 2025 harvest year and has fallen 8.7% in the past month alone, according to market data reported by Spanish outlets on 22 October 2026. Spain’s farm-gate extra virgin olive oil price averaged €3.30 per kilogram on 8 October — a level farming unions say is below the real cost of production.

Why Prices Are Falling Faster Than Farmers Can Absorb

Spain’s 2026-2027 harvest is forecast at 1.6 million tonnes, about 23% above last year, with rain-fed groves bearing the brunt of the glut. Farm groups including ASAJA, COAG, UPA and the Cooperativas Agro-alimentarias say production costs have risen 57% since 2021, driven by fuel, labor and fertilizer. Rafael Sánchez de Puerta, head of the cooperatives’ olive oil sector, says the gap between farm-gate and retail prices has widened sharply: large retailers such as Mercadona and Carrefour are still selling extra virgin olive oil at roughly €4.34-4.35 a litre, even though Carrefour and Dia had trimmed their own-label prices by 15 to 24 cents a litre by early September.

A Possible Storage Mandate Could Change the Picture by November

Farm unions are pressing Spain’s Ministry of Agriculture to activate an emergency marketing norm that would require mills to hold back a set share of their oil rather than sell it all immediately, in an effort to tighten supply and support prices. Agriculture Minister Luis Planas has called the measure “extraordinary” and said it has never been used before; he wants final harvest figures before deciding. A decision is expected in the first half of November 2026.

For buyers who source olive oil from Tunisia, the Spanish price crash matters directly: Spain and Tunisia compete for many of the same export markets, including the United States, where Tunisian oil overtook Spain as the top supplier earlier this year. A sustained drop in Spanish benchmark prices could pressure Tunisian export prices lower in the short term, but if Spain’s storage mandate goes ahead in November, global supply could tighten again just as quickly — a reason for buyers to watch the decision closely before locking in long-term contracts.

FAQ

Why has the price of Spanish olive oil dropped so much in 2026? A harvest forecast about 23% larger than last year, combined with soft demand, has pushed the farm-gate price of Spanish extra virgin olive oil down to roughly €3.10 per kilogram, the lowest level in five years.

Will Spain limit olive oil sales to raise prices? Farm unions have asked Spain’s Ministry of Agriculture to require mills to hold back part of their stock instead of selling it all at once; Agriculture Minister Luis Planas says a decision is expected in the first half of November 2026.

Source: Euro Weekly News