Contrary to Popular Belief, the Challenges of the Excellent 2025-2026 Olive Oil Season are Not Exclusive to Tunisia
The Spanish producers, world leaders in the sector, are facing similar difficulties, creating a paradoxical situation where the abundance of the harvest generates its own constraints on an international scale. The Spanish Ministry of Agriculture has just approved a new mechanism allowing for the temporary withdrawal of olive oil from the market during the 2025-2026 campaign, in order to avoid a price collapse in the event of a surplus. This rule provides producers with an official tool to manage periods of decline in one of the most cyclical agricultural markets. When supply exceeds demand, a portion of the volumes can be temporarily set aside to alleviate pressure on prices and preserve the income of farmers. By publishing the regulation before the start of the campaign, the world's leading producer is bringing clarity to the various stakeholders in planning their production, storage, and commercial strategies. This measure could curb speculative activities, by specifying how and when the product can be temporarily withdrawn from circulation, which would reduce price fluctuations and improve market predictability. For Tunisia, this short-term stability is good news. It ensures the start of the season in more serene conditions. For the local consumer, this confirms price expectations around 12 TND per liter, above expectations from a few weeks ago, which suggested a single-digit price.
