A Spanish olive oil cooperative has stopped buying oil from local producers following the government’s latest intervention in the market. The decision has raised concerns among smaller growers, while regional authorities are challenging the restrictions over fears they could damage local businesses.
Why has a Spanish olive oil cooperative stopped buying?
The decision comes from the Sant Bartomeu agricultural cooperative in Sóller, Mallorca, which has suspended purchases while it waits for the outcome of a challenge to the new rules. The cooperative has not closed and will continue processing olives and storing oil, but its president, Miquel Gual, fears that buying more could expose the business to significant financial losses.
The problem is not simply the cost of storage. Gual is concerned that olive oil held back until September 2027 could lose some of its quality and commercial value before it can be sold. If oil originally purchased as extra virgin has to be sold at a lower grade, the cooperative could find itself receiving considerably less than it paid.
Read the rest at Euro Weekly News
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