Packaged ones are more useful! | Turkish Economy News

Packaged ones are more useful!  |  Turkish Economy News


Turkey, one of the world’s leading olive producers, is criticized for its high potential but low value-added product exports. Turkey, which has struggled for years with the European Union’s low quota and high customs duties, stopped its bulk and barreled olive oil exports between 1 August and 1 November 2023 as a reaction. The practice, which only allows the sale of packaged products in the three-month period between these dates, brought benefits to Turkey.

UNIT PRICE INCREASED TO 3.4 DOLLARS

The bulk olive oil sales ban policy that Turkey has implemented for the last two years has paved the way for Turkey’s export of packaged olive oil with high added value. Turkey exported 58 thousand tons of olive oil to more than 120 countries in the 2021-2022 season, generating an income of 201.6 million dollars. During this period, our olive oil exports increased by 32% on quantity and 50% on value basis. The average unit export price of olive oil increased from 3 dollars to 3.4 dollars in the last year.

79 PERCENT INCREASE IN EXPORTS

Our packaged olive oil exports constitute 53 percent of total olive oil exports.

Turkey’s 3-month restriction on bulk olive oil exports this year has increased our packaged sales to Europe and the income generated. Our total olive oil exports, which were 201.6 million dollars in the 2021-2022 season, increased by 79 percent to 360.7 million dollars in the 2022-2023 season.

PRICES ARE OUT IN EUROPE

Italy and Spain took advantage of the obstacles in the export of value-added and packaged olive oil to the end consumer to EU member countries; It processes bulk and barreled olive oil imported from Turkey and sells it to third countries. When the drought in Spain was added to Turkey’s three-month export restriction, olive oil prices in Europe increased. According to Infa Oliva data, where prices in the sector are monitored; Olive oil shelf prices increased by around 130% in European countries. The shelf prices of a liter of olive oil, which was sold for an average of 7 euros last year, increased to 16 euros.

Kyle Holland, oilseeds and vegetable oils analyst at Mintec, a UK-based food and agriculture sector commodity analysis company, stated that Turkey’s suspension of bulk olive oil exports had a more negative impact on the already limited volume.

Türkiye does not shy away from competition

Turkey, which is the second largest country in olive and olive oil production after Spain, does not hesitate to compete in export markets. Turkey’s customers in bulk olive oil exports, European Union member countries, apply high quotas to packaged purchases. Although Turkey objects to this policy, which aims to buy products from Turkish manufacturers at cheap prices, Europe is not willing to increase the quota in our packaged product sales. If the quota increases, Turkish companies can become more competitive in the European market and compete with countries such as Spain and Italy.

Our olive oil production is more than the need

Minister of Agriculture and Forestry İbrahim Yumaklı said that they started to inspect olive oil production and sales centers. Answering the questions of journalists at the Turkey Agriculture Summit held in Istanbul, Yumaklı said, “There was a record olive harvest in our country and 422 thousand tons of olive oil was produced from this. Our country’s olive oil need is between 160 thousand and 180 thousand tons annually. The amount of olive oil obtained from this year’s harvest, which is said to be low, will be 180 thousand tons. “So even if we assume that we do not have any product from last year, the product that will be produced this year is sufficient for our consumption,” he said.

Despite this, Yumaklı pointed out that there is speculation on the price of olive oil and stated that Turkey does not have any problem in the supply of olive oil and that there is enough olive oil and even surplus in the market. Stating that there is a strange situation here, Yumaklı said, “I would like to state that such things will not be allowed. When the issue of olives and olive oil became so popular, other ill-intentioned people also had their day. As of the beginning of the week, we started to inspect olive oil production and sales centers with 7,500 of our friends, apart from our routine inspections. “Our inspections regarding this will continue,” he said.



Source link