Turkey Targets 300,000 Tons of Olive Oil Exports

Export quota regime and per-kilogram fund deduction of 20 cents in olive oil have been terminated under new regulations.

With the new harvest olive oil, a volume of 500,000 tons is expected to be created in the sector, while Köklü Zeytincilik Board Chairman Mustafa Kürlek stated that Turkey needs to export approximately 300,000 tons of olive oil and indicated that olive oil prices could fall to the EUR 3.5 band with Spain and Mediterranean Basin olive-producing countries producing 1.5 million tons of olive oil.

The Presidential Decree on Amendment to the Decision on the Support and Price Stability Fund was published in the Official Gazette and entered into force. As of 1 August 2023, restrictions were imposed on bulk olive oil exports, and a per-kilogram deduction of 20 cents was applied to all types of bulk and barreled olive oil exports.

Due to drought in Europe, global olive oil production fell by 20 percent, particularly in Spain and Italy, while Turkey's production increased by 62 percent in the 2022/2023 season. Following the restriction on bulk and barreled olive oil exports, a quota system was implemented, opening 10,000 tons per month for certain exporting companies and a total of 50,000 tons for the next five months.

Köklü Zeytincilik Board Chairman Mustafa Kürlek, making statements on the lifting of the export ban and the 20-cent per-kilogram fund deduction, said: "This decision, taken to establish price balance in the domestic market, continued for approximately 10 months.

Subsequently, due to the absence of bulk olive oil sales abroad from our country, a significant stock of olive oil accumulated. In the new harvest season, olive oil yield expectations in our country are at the 400,000 ton level, and therefore the ban on bulk olive oil exports and the USD 200 per-ton tax applied were also lifted with this decision.

It is expected that approximately 100,000 tons of olive oil will be carried forward to the new harvest season. Together with the 400,000 tons of newly produced olive oil, a total volume of 500,000 tons will be created. If we assume domestic consumption of 120,000 tons, Turkey needs to export approximately 300,000 tons of olive oil abroad.

However, Turkey's maximum olive oil export volume to date is 150,000 tons. Much larger quantities of olive oil need to be exported abroad this year," he said. Emphasizing the need to diversify overseas markets, Mustafa Kürlek stated: "We need to focus on markets such as the USA and Japan. Another determining factor in our exports will be the amount of olive oil that olive-producing countries in Spain and the Mediterranean Basin will produce this year. If Spain produces olive oil in the 1.5 million ton range, prices in our country could fall to the EUR 3.5 band. Additionally, a large portion of the produced olive oils could remain in our hands."