Olive oil: Turkey export restrictions lifted
Turkey has lifted restrictions on olive oil exports ahead of schedule, initially imposed in August 2023, due to a projected global increase in olive oil production. With Turkey expecting a substantial yield, market prices have already dropped, and further declines are anticipated. Turkish producers aim to boost exports, targeting new markets like the USA, Australia, and Japan.
IZMIR. The Turkish olive oil sector can breathe a sigh of relief. With the prospect of a global increase in production, the restrictions on Turkish olive oil exports have been lifted ahead of schedule.
Plan did not work out
The Turkish olive oil sector had to fight for a long time before the current export restrictions were lifted. Last month, the ban on olive oil exports, which had been in place since 1 August 2023, was eased and replaced by a 50,000 mt quota. The export licence, which was originally due to expire on 1 October 2024, has now been cancelled ahead of schedule and with it the restrictions in place since last summer, including a reduction in subsidies of 20 cents/kg.
The government’s plan to supply more olive oil overseas in small outer packaging did not work out; instead, significantly lower sales were generated due to the minimised export of olive oil in bulk and in barrels. Producers were stuck with their goods and feared high financial losses due to the loss of quality caused by the long storage period.
Global production set to almost double
According to Davut Er, President of the Aegean Olive and Olive Oil Exporters’ Association, olive oil production worldwide is set to almost double this year. A massive increase in yields is expected in Turkey and market players in Spain, one of the most important players in the international olive oil market, are also expecting a significantly better crop after the drought-stricken year. This is putting enormous pressure on the Turkish market and another year of missed opportunities must be ruled out. A noticeable decline in prices has already been observed and further downward corrections are expected to follow. Average consumer prices in Turkey have already fallen from EUR 9/litre to EUR 7/litre, and an overall decline to EUR 5/litre is expected.
“It would not be wrong to say that the sector has experienced a global image and customer loss”, Er said. Turkey’s focus is now on opening up new markets and strengthening its own position – possible markets include the USA, Australia and Japan.
0.5 million mt of olive oil in Turkey
Worldwide, 3.2-3.4 million mt of olives are expected to be harvested this year, while Turkey is expected to produce 1.2-1.4 million mt. Market players expect an olive oil production of 400,000 mt in Turkey, plus 100,000 mt of carry-over stocks from last year, meaning that around half a million mt of olive oil would be available on the Turkish market for the 2024/2025 season. Domestic demand is around 120,000 mt and experts hope that the export volume will increase to 300,000 mt.
Source Link : https://www.mundus-agri.eu/news/olive-oil-export-restrictions-lifted.n33590.html
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