Significant Olive Oil Stockpiles Pose Spoilage Risk

Türkiye currently holds a substantial amount of olive oil stock, estimated at around 200,000 tons, which is at risk of spoilage due to export restrictions and expectations of price increases. The ban on bulk and barrel olive oil exports is estimated to result in a loss of $300-400 million for the country.

Repeated Export Bans Impact the Industry

Over the past three years, Türkiye has implemented export bans on bulk and barrel olive oil four times, with an additional imposition of a 20-cent levy per kilogram. Despite these measures aimed at lowering domestic prices, the bans have not succeeded in reducing prices but instead led to increased costs and spoilage risks.

Factors Driving Market Dynamics

Spain, the world's largest olive and olive oil producer, has experienced consecutive seasons of drought, significantly reducing production. Similar challenges have affected other major producers like Italy and Greece, leading to increased demand for Turkish olive oil and subsequent price hikes both domestically and internationally.

Export Restrictions and Their Economic Impact

The export restrictions have not only failed to lower domestic prices but have also resulted in significant economic losses for the country, estimated at $300-400 million. Despite achieving record-breaking exports in recent seasons, the Turkish olive oil sector is facing unprecedented challenges due to these restrictions.

Calls for Policy Reform

Industry leaders, including the Ege Olive and Olive Oil Exporters Association, have called for the lifting of export restrictions to mitigate economic losses and prevent further spoilage of stored olive oil. They emphasize the need for policy reforms to support the growth of the olive oil sector and ensure its competitiveness in global markets.

Planning for the Future

Türkiye's olive oil production potential is estimated to reach 650,000 tons, necessitating strategic planning to capitalize on this capacity. Industry stakeholders stress the importance of developing long-term plans to effectively utilize the country's olive oil resources and maintain its position in the global market.

As Türkiye grapples with the challenges posed by export restrictions and changing market dynamics, addressing the concerns of industry stakeholders and implementing strategic reforms will be crucial for sustaining the growth of the olive oil sector and maximizing its economic potential.