Europe Allows Cooperatives in Spain to Regulate Supply

After years of lobbying Brussels, Spanish cooperatives will now be able to voluntarily withdraw surplus olive oil from the market.
Spanish Ministry of Agriculture, Food and Fisheries
Nov. 10, 2020
Daniel Dawson

Recent News

Spanish olive oil coop­er­a­tives have been given the green light to vol­un­tar­ily self-reg­u­late by the European Commission.

The move will allow mem­bers of Spain’s main agri­cul­tural coop­er­a­tive, Cooperativas Agro-ali­men­ta­rias, to with­draw sur­plus olive oil from the mar­ket dur­ing years in which pro­duc­tion out­strips demand and exports.

See Also:Olive Oil Consumption Set to Outpace Production For a Change

The announce­ment came after a meet­ing of European Union agri­cul­tural min­is­ters and will be for­mally cod­i­fied into the Common Market Organization (CMO) reg­u­la­tion of the E.U.’s pend­ing Common Agricultural Policy.

Spain’s Cooperativas Agro-ali­men­ta­rias has obtained the approval of its pro­posal for vol­un­tary self-reg­u­la­tion in the olive oil sec­tor by the European Commission,” the coop­er­a­tive wrote in a state­ment on its web­site, adding that the deci­sion would allow its mem­ber coop­er­a­tives to reach agree­ments for a prod­uct with­drawal from the mar­ket, pro­vided that the spe­cific cir­cum­stances of each cam­paign make it nec­es­sary.”

However, offi­cials from Cooperativas Agro-ali­men­ta­rias, which rep­re­sents 3,600 dif­fer­ent coop­er­a­tives and boasts more than one mil­lion mem­bers, hinted that the new rul­ing would not be a tool of first resort for coop­er­a­tives seek­ing to increase per­sis­tently low olive oil prices.


The approved mech­a­nism could be acti­vated in those sur­plus cam­paigns, in which the prod­uct avail­abil­ity far exceeds the vol­ume of olive oil that is capa­ble of being absorbed, always attend­ing to the spe­cific mar­ket sit­u­a­tion at all times,” the coop­er­a­tive said.

Self-reg­u­la­tion was just one of sev­eral mea­sures intro­duced by Luis Planas, the Spanish min­is­ter of agri­cul­ture, at the meet­ing that are meant to sup­port olive oil pro­duc­ers.

The oth­ers included pro­mot­ing early har­vest­ing, increas­ing the amount of organic olive groves in the coun­try and improv­ing label­ing for tra­di­tion­ally-pro­duced oils.

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