The European Commission adopted a new measure Monday to provide aid to EU producers for the storage of olive oil. The measure was introduced in response to an imbalance in the EU olive oil market with regard to supply and demand, and a fall in price as a result.
Prices have fallen recently in Spain, Greece and Portugal due to an excess in supply following the 2018/19 harvest. In mid-October, the price of extra virgin olive oil in Spain was 33 percent below the five-year average, while in Greece the price was 13.5 percent lower.
Olive oil stocks in the EU are estimated to be currently at 859,000 tons, with Spain holding 88 percent. This is expected to increase once the 2019/20 harvest is complete. In order to relieve pressure on the EU olive oil market, it is hoped that the private storage scheme will help to stabilize it.