Turkish olive oil producers are set to increase exports to the USA, Japan and Australia following the lifting of the country’s ban on bulk olive oil exports, Olive Oil Times wrote.
Against a backdrop of low stocks in Europe, the move comes at a time when Turkish stocks are high and the country expects another bumper crop, according to the 31 October report.
Olive oil producers in Turkey aimed to compete with European producers on quality and price while making significant gains in other key markets, including Saudi Arabia, the United Arab Emirates (UAE), China and Japan, where demand was increasing, the report said.
By 2025, Turkey planned to increase its presence in those regions via targeted marketing and trade partnerships, Olive Oil Times wrote.
The ban was lifted 13 months after the Turkish government suspended bulk olive oil exports in a bid to stabilise domestic prices and encourage exports of individually packaged olive oil, which are sold at a premium to bulk olive oil.
“The restriction on olive oil exports in Turkey was done to prevent prices from rising in the domestic market,” Mustafa Tan, president of the National Olive and Olive Oil Council, was quoted as saying.
“However, since prices in the domestic market are related to world prices, this effect was not seen much.”
In June, following intense lobbying by producers and exporters, the government eased the ban, allowing 50,000 tonnes to be exported until November.
“With the lifting of export restrictions on olive oil, sector representatives started to see the way ahead. The lifting of export restrictions on olive oil will move the sector higher,” Tan said.
After several years of robust harvests and some difficulties exporting individually packaged olive oil, Turkey’s stock levels are high, according to the report.
“Turkey’s olive oil exports are predominantly confined to bulk sales,” export specialist Serkan Yasser was quoted as saying.
“Before the ban, there was concern regarding a potential supply shortage for the domestic market. However, our current challenge is the accumulation of excessive olive oil stocks.”
According to Mehmet Emre Uygun, chairman of the Aegean Olive and Olive Oil Exporters’ Association (EZZIB), Turkey had about 150,000 tonnes of olive oil stocks heading into the start of the crop year.
Sources expect Turkey to produce about 350,000 tonnes of olive oil in the 2024/25 crop year. With domestic consumption of around 120,000 tonnes/year, Uygun and other Turkish producers and officials were concerned that some oil not scheduled for export would lose quality.
Some supply chain experts expected Turkish producers could fill the void left by two years of below-average harvests in much of the Mediterranean, the report said.
Spain and Italy will have low olive oil stocks until the harvest peaks in November and December, according to the report.
“Spain is currently facing production challenges attributed to drought and climate change, resulting in significant supply gaps within the global olive oil market,” Sean Zacot, president and chief executive of supply chain advisory Boss Global Strategy, was quoted as saying.
“This development has led to heightened demand for Turkish olive oil in key markets, particularly within the European Union, where Spain has historically held a dominant position.”
Turkey’s olive oil exports increased by over 80% during the 2022/23 crop year, Zacot said.
“The establishment of new olive groves, coupled with investments in advanced processing facilities, positions Turkey for further enhancement of its production capacity,” he added. “By 2025, Turkey aspires to achieve annual olive oil exports exceeding 130,000 tonnes.”
Turkish producers were also targeting the North American market where demand is steadily rising, according to Zacot.
“It is anticipated that by 2025, Turkey will enhance its exports to North America by emphasising premium products and organic olive oil.”
However, the EU remains a crucial market for Turkish olive oil, representing a substantial share of its exports, according to the report.
