Europe faces an olive oil crisis, record expected in Türkiye

In Türkiye, the number of olive trees increases every year. In the last 20 years, the number of olive trees in the country has grown from 99 million to 189 million. This increase in olive tree population has also resulted in higher production. According to data from the Ministry of Agriculture and Forestry, olive production in Türkiye was approximately 1.739 million tons in 2021, but last year it reached 2.977 million tons, showing a 71% increase.

Table olive production increased from approximately 556,000 tons in 2021 to 736,000 tons in 2022, representing a 32% increase. Olive oil production also saw significant growth during the same period, rising from 236,000 tons to 422,000 tons, indicating a 79% increase.

With these figures, Türkiye became the world leader in table olive production and ranked second after Spain in olive oil production. In recent times, climate change and extreme temperatures have caused serious declines in olive and olive oil production in Europe, especially in Spain. As a result, the market's attention has shifted to Türkiye, which has recently achieved record-breaking production.

Unlike the situation in Europe, the sector representatives in Türkiye are focusing on achieving new records in production and exports. Thanks to the measures taken by the Ministry of Trade regarding olive oil exports, it is anticipated that the season will be smooth, and value-added production will be increased.

Mustafa Tan, the President of the National Olive and Olive Oil Council, stated that Türkiye had produced 422 thousand tons of olive oil last year, and the new season would start in October.

Tan also mentioned that more than 30 thousand tons of olive oil stock was carried over from the 2021 season. He said:

"With the carryover, our total olive oil stock reached 450 thousand tons. Last year, 135 thousand tons were exported, leaving 315 thousand tons of olive oil for domestic consumption. Türkiye's annual average domestic consumption does not exceed 2 kilograms per person. This means we will have about 155 thousand tons of stock left. When the oil coming from Afrin is added, we are expected to carry over around 180 thousand tons to the next year. Last year, our country produced 422 thousand tons of olive oil, and even if we produce only 40% of that amount this year, with the carryover from the previous season, a stock of 380 thousand tons will be formed. We will have enough record production to meet both domestic and international demand in the upcoming season."

Mustafa Tan also commented on the additional measures taken by the government regarding bulk olive oil exports, stating that the decision would increase the export of packaged and branded olive oil in the future.

Emphasizing their support for high value-added exports from the beginning, Tan used the following statements:

"If you have a facility that produces 60 thousand tons per year and can only sell 20 thousand tons in packaged form, you are forced to sell the remaining 40 thousand tons in bulk. Spain, Italy, and Greece also sell their surplus olive oil in bulk when they have excess stock. Of course, Türkiye should focus on packaged and branded sales, but when necessary, bulk sales should also be possible. Exports bring foreign currency to our country. Currently, for the first time in our history, we are approaching 1 billion dollars in olive oil exports. Spain and Italy are running out of olive oil, and it is evident that prices will rise. In free-market conditions, prices are increasing. There is also a market for this, and prices are determined on the market. However, in the future, we expect such measures to be determined in a meeting with sector representatives, when the balances are revealed at the beginning of the season."

Güngör Şarman, the General Manager of the Agricultural Sales Cooperatives Unions (TARİŞ), also stated that Türkiye had reached a very good level of production this year and added the following:

"Next year, it is expected that the production will be slightly lower than this year, but not in an amount that will cause trouble in olive production in our country. Considering the stocks that will be carried over from this year, we will comfortably pass the season."