The Ministry of Commerce announced that exports were halted until 1 November due to the increasing foreign demand for olive oil and the negative impact of world prices on domestic consumer prices.
In the statement made by the Ministry of Trade, it was stated that according to the data of the International Olive Council (UZK), olive oil production in the world, especially in Spain and Italy, decreased by 20% in the 2022/2023 season, and the production in Turkiye increased by 62% due to the drought in Europe.
In the statement, it was noted that the rapid increase in exports of olive oil in bulk and barrels was reflected in domestic prices, and the increase in olive oil retail prices in the domestic market was well above the general price increase in the last year.
Due to the high customs duties of the European Union (EU), Turkiye’s value-added and packaged olive oil exports to EU member countries are very low, it was pointed out that especially Italy and Spain process and market olive oil in bulk and barrels imported from Turkiye to third countries.
In the statement, it was reminded that the decision regulating the deduction of 20 kurus per kilogram in all kinds of bulk and barreled olive oil exports in order to contribute to the export of value-added products by directing the exports of olive oil in bulk and barrels, which increased due to foreign demand, to packaged olive oil, entered into force after being published in the Official Gazette on 19 July.
Additional measures come into effect until 1 November
In the statement, the ministry stated that the current developments in Turkiye and the world regarding foreign trade, domestic supply, supply, foreign and domestic prices regarding the olive oil sector are closely followed by the sector stakeholders in close contact with them, and the following statements were included:
In this context, it has been noted that the negative impact of olive oil exports in bulk and barrels, which have increased significantly due to the increasing foreign demand and world prices caused by the decreasing olive oil yield in the world, on domestic consumer prices continues. Our Ministry has made a re-evaluation under these conditions, and additional measures have been put into effect for the export of olive oil in bulk or in barrels until November 1, 2023, which is the beginning of the next olive oil harvest period.”
In the letter sent by the Ministry of Commerce to the sector representatives regarding the additional measures in question, it was learned that olive oil exports were stopped until 1 November.
Source: Trthaber / Prepared by Irem Yildiz