Turkey's Olive Oil Prices Rise 16% in Dollar Terms

Turkish olive oil's average export price increased during the pandemic period. The average export price of Turkish olive oil rose by 16% on a dollar basis in the first half of the 2020/21 season, from USD 2,397 to USD 2,786. Turkish olive oil was exported at USD 390 added value per tonne. In the first half of the 2020/21 olive oil export season, which began on 1 November 2020, the sector known as the golden liquid has completed its first phase. Between 1 November 2020 and 30 April 2021, Turkey exported 22,719 tonnes of olive oil, generating USD 63.286 million in foreign currency for the country.

Table olive exports for the seven-month period totalled 55,050 tonnes, worth USD 95.817 million. Of the table olive exports, USD 74 million came from black olive shipments, while USD 21.8 million in foreign currency was generated from green olive exports.

US demand for Turkish olive oil increasing

Davut Er, Chairman of the Board of Ege Zeytin ve Zeytinyağı İhracatçıları Birliği, reported that the United States' share in olive oil exports is growing daily. In the first half of the 2019/20 season, Turkish olive oil exports to the United States were 8,370 tonnes; in the 6-month period of the 2020/21 season, this increased 9% to 9,103 tonnes. Er stated: "The foreign currency we earned from olive oil exports to the United States increased 26%, from USD 18.388 million to USD 23.098 million. Our olive oil exports to the United States showed a 26% increase on a dollar basis. The United States alone captured 36.5% of Turkey's olive oil exports." Ege Zeytin ve Zeytinyağı İhracatçıları Birliği Chairman Er, emphasizing that as a Turkish olive growing sector they view the United States as a target market for both olive oil and table olives, continued as follows: "With the support of our Ministry of Commerce, we have been implementing the TURQUALITY Project for the past 2 years with 6 food unions under Ege Exporters Associations, aimed at increasing the recognition of Turkish food products in the US market and boosting our exports. Within the scope of the TURQUALITY Project, we arranged for Turkish cuisine to be taught as a course in the curriculum of the William F. Harrah School of Hospitality at the University of Nevada, Las Vegas, where the Horeca sector is very strong. Chefs graduating from this school will graduate with knowledge of Turkish cuisine and will emphasize Turkish olive oil dishes on their menus. Within the scope of the TURQUALITY Project, in November 2020 we organized a Turkish olive oil tasting event for chefs and purchasing managers of five-star hotels and major restaurants in the United States. We are harvesting the fruits of our work in the US market."

We should increase domestic consumption by reducing VAT to 1%

Davut Er, Chairman of Ege Zeytin ve Zeytinyağı İhracatçıları Birliği, stressed that Turkey has made substantial investments in the olive sector since 2002, increasing its olive tree stock from 90 million to 180 million. "The Ministry of Agriculture and Forestry projects that Turkey's olive oil yield will reach 650,000 tonnes and table olive yield will reach 1.2 million tonnes. To convert this yield into added value, we must also increase domestic consumption. For this reason, we are calling for VAT on olive and olive oil, which are healthy foods, to be reduced from 8% to 1%," he concluded.