The Ministry of Commerce announced that the developments in the olive yield will be followed in order to avoid supply-side problems in terms of consumer welfare and prices in the domestic market, and the measures regarding the export of bulk and barreled olive oil will continue for a while.
In the statement made by the Ministry, information was given regarding the extension of the measure applied to bulk and barreled olive oil exports.
In the statement, it was reminded that there was a low yield in the world’s leading olive producing countries in the 2022-2023 season, and on the other hand, it was pointed out that the foreign demand for the country’s olives and olive oil increased due to the increase in yield in Turkiye.
In the statement, “Some measures have been taken for the export of bulk and barreled olive oil in order to prevent the upward pressure on our country’s domestic olive oil prices due to the increase in world olive oil prices caused by the decline in world olive and olive oil production, due to the foreign demand. Thus, it is also aimed to contribute to value-added product exports by directing our olive oil exports to packaged olive oil. In this context, the Presidential Decree on the Amendment to the Decision on the Support and Price Stabilization Fund, which regulates the deduction of 20 cents per kilogram in all kinds of bulk and barreled olive oil exports in the first place, entered into force by being published in the Official Gazette dated July 19, 2023.”
In the statement, it was stated that a re-evaluation was made due to the continuing negative impact of bulk and barreled olive oil exports on domestic consumer prices, which seem to continue to rise, and it was reminded that additional measures for bulk or barreled olive oil exports were put into effect until November 1, 2023, to be implemented as of August 1, 2023.
Production losses occurred due to climate conditions
In the statement, it was emphasized that the olive yield is expected to increase this season after the dry year in Europe, and it was observed that the increase in world olive oil prices, which are currently high, continues, as olive oil production is expected to remain well below the previous season’s averages.
In the statement, it was pointed out that production in the country decreased this season due to the “off year” and that there were production losses in many regions due to the adverse climatic conditions during the flowering period of olives, and the following was noted:
“Considering that there will be no decline in the increasing olive oil prices in the world and the increasing foreign demand will continue, in order to avoid supply-side problems in terms of consumer welfare and prices in the domestic market, there was a need to continue the measures implemented for the export of bulk and barreled olive oil by monitoring the developments in the product yield for a while longer. All of the aforementioned evaluations were made in full coordination with our Ministry of Agriculture and Forestry and decisions were taken based on this. On the other hand, it would be beneficial to share with the public that there are no measures implemented for the export of packaged and boxed olive oil.”
Source: Trthaber / Prepared by Irem Yildiz