CNMC questions the design of the planned olive oil withdrawal for 2026/27

The National Commission on Markets and Competition (CNMC) considers that the draft regulation on the marketing of olive oil for the 2026/27 season poses risks to competition and consumers. The text provides for oil to be withdrawn from the market if a threshold linked to stocks and production is exceeded, with the aim of responding to a possible oversupply. The measure is still part of a draft: the effects identified by the CNMC are potential risks, not consequences that have already been observed.

How the withdrawal would be triggered

According to the draft under review, the measure would be activated when opening stocks, added to estimated production, reached at least 120% of the average of the two highest marketing levels recorded over the last six seasons. The quantity withdrawn could not exceed 20% of estimated production.

The CNMC does not question the possibility of providing a response to overproduction, but it calls for evidence that the situation is exceptional and that withdrawing product constitutes a necessary and proportionate intervention. In its view, limiting available supply could affect prices, product variety and quality, as well as alter competition between operators in the supply chain.

The authority also calls for the possible effects on consumption and producer profitability, as well as on other market participants, to be quantified. Among the aspects it considers relevant is the potential impact on lower-income consumers, who are particularly exposed to price changes in a basic food product.

Six aspects the CNMC wants clarified

In its report on the draft, the Commission sets out six areas for improvement to define the measure and facilitate its oversight:

1. Substantiate the oversupply with demand and trade-flow data that support the intervention.
2. Explain how the withdrawal is calculated, so that the 20% maximum does not replace the determination of the minimum volume necessary.
3. Define the affected categories and justify the freedom of choice each olive mill would have, taking into account the different segments and consumers.
4. Specify who would be required to comply, including objective, non-discriminatory criteria to clarify the planned exemption for small-scale olive mills.
5. Define controls before activating the measure and prevent the mechanism from encouraging exchanges of commercially sensitive information between operators.
6. Establish monitoring, phases and deadlines for reviewing, adjusting or revoking the withdrawal if market conditions change.

Defining which parties would be required to comply is one of the specific points the authority wants clarified. Without objective criteria defining the scope of the exemption for small olive mills, it notes, differences in treatment between operators could arise.

A consultative report, not a decision on the outcome

The CNMC issued the report as part of its competition advocacy functions. Its opinion is consultative and non-binding: it does not amount to a prohibition of the measure, nor does it determine the final content of the regulation. The assessment concerns the draft ministerial order of the Ministry of Agriculture, Fisheries and Food for the 2026/27 season.

For companies in the sector, the regulatory question is not limited to the threshold and maximum percentage. The draft will also need to specify which categories the withdrawal would apply to, how obligations would be distributed, which controls would be activated and what indicators would be used to review the measure. The CNMC maintains that these elements should be based on a comprehensive assessment of the market before the intervention comes into effect. (Sources: CNMC; Servimedia; Mercacei; Merca2.es.)