UZZK Council President Mustafa Tan said, “Turkish olive oil prices are parallel to the world prices. In fact, they were even low last year. I think the prices will reach a reasonable level next year. Our consumers are intimidated by the rhetoric.”
Tan told the AA correspondent that Turkiye is a country that experiences “yes” and “no” years in olive production, like its examples in the world.
Tan stated that the average olive oil production was 164 thousand tons when looking at the “non-existent years” of the last 10 years, and stated that this year, although it is a “non-existent year”, a yield of 180 thousand tons is expected.
Stating that other countries also had losses last year, Tan said, “There are approximately 180 thousand tons of stock, and this year we will have 180 thousand tons of products in total, 360 thousand tons. 160 thousand tons of this will go to domestic consumption. At the same time, last year’s record export, which reached $1 billion, was 150 thousand tons. If we add that to it, it becomes 310 thousand tons. We may even have 40-50 thousand tons of olive oil available before next year.”
Emphasizing that one should be careful against fake and adulterated olive oils, Tan said, “The prices of olive oil in Turkiye are parallel to the world prices. In fact, they were even low last year. I think prices will reach a reasonable level next year. Our consumers are intimidated with statements such as ‘the prices will come at these prices’, as if scaring children. The price of everything increases in proportion to its costs.”
Tan continued as follows, warning against speculative discourses about olive oil prices:
“Prices are formed in the market, it is speculative to say ‘it will be like this, it will be like that’. This is wrong. As a matter of fact, many of our organizations have started to announce their prices. They are also doing business. According to the rules of trade, by looking at the costs, producer organizations declare prices by defending the rights of the producers and at the same time acting as a prudent trader. When we look at the prices, they are similar to the world markets. The amount of quality oils is very small this year. For example, there is a price of ₺295, this price is the price of the highest quality group. Normally, 1-1.5 acids are around ₺200-₺250.”
Explaining that they carried out the yield determination studies in September this year and that they expect a yield of 180 thousand tons of olive oil and 442 thousand tons of table olives, Tan emphasized that reasonable domestic market prices are important for increasing consumption.
“We should not talk about prices”
Stating that olive oil has a worldwide stock market, Tan continued his words as follows:
“I see speculative conversations on prices. What we see concretely here are the prices announced by a few companies. Because trade is taking place. There are purchasing prices from the producers. There are statements from Marmarabirlik and Taris in both the table and olive oil sections. I am someone who knows the structure of those unions well. They always look at world prices. They look at the producer cost and increase it at a reasonable rate, taking into account the producer’s standard of living, and give their prices on a scale basis. It is also important what quality oils are included in these prices. These days, the highest prices announced by these companies are pronounced. This is wrong. On average, which oil do we consume and how much? It may come to the point of decreasing the already increasing interest in olive oil by saying, ‘This is how the price will increase so much’ etc. This issue needs to be handled with care. We should not talk about prices.”
“Prices are going in proportion to world prices”
Stating that the government has implemented measures to prevent prices from rising, Tan said, “No matter what is done, prices go in proportion to world prices. So why are they rising? There is poverty in the world, and world prices are rising because of it. There is concern that there may be shortages in the coming years. Because Spain, Italy and Tunisia experienced the highest and driest years in 500 years. In this case, there is that concern. They cannot increase consumption too much because this is one of the reasons for the price increase. In our country, our production costs are high. 75-80% of the olive growing areas in our country are in mountainous areas, and since olives are scarce here, the harvest cost per kilogram, which would normally cost ₺10, can go up to ₺30.”
TARIS Olive and Olive Oil Association President Surek: Consumers who cannot afford to buy extra virgin will be able to consume riviera or refined olive oil
In his written statement, Surek reminded that the Union started purchasing on November 8 at the prices announced for its producer partners in the 2023-2024 season.
Underlining that not every olive oil is traded in the market, Surek said, “The purchase price of 5 acid refining olive oil traded in the market is ₺165 per kilogram and the price of 16 acid refining olive oil is ₺75 per kilogram. The price of ₺295 per kilogram, which has recently been highlighted, is the gross price valid for 0.3 North Aegean natural extra virgin oil, and there is no purchase of 0.3 acid, so it is not traded in the market.”
Surek pointed out that the purchase prices are determined by taking into account the market prices from 30 cooperatives, the product yield, the yield commitment amounts of the producer partners, the quality status of the product, the amount of stock, sales targets, foreign market information and yields, and the payment term of the product price, and said:
“Before the season starts, quality research is carried out by taking oil samples from other olive growing regions, especially the cooperative regions. As a result of both the relevant research results and the examinations carried out in the field, it has been determined that the amount of extra virgin olive oil will be low. Consumers will be able to eat olive oil depending on their economic situation. There is no single olive oil for the consumer. Currently, various grades of olive oil are available at affordable prices. Consumers who cannot afford to buy extra virgin will be able to consume Riviera or refined olive oil.”
Source: AA / Prepared by Irem Yildiz