Olive oil: export restrictions prompt supply glut
March 20, 2024 at 9:48 AM ,
Der AUDITOR
Hardly possible to meet EU standards
Last summer Turkey's government introduced an export ban for bulk and barreled olive oil to make sure that domestic demand could be met. Things, however, turned out differently than expected as a supply squeeze did not emerge. The market is now instead confronted with excess supplies that could not be sold in the domestic market. Fear is that last year's carry-over supplies coupled with this year's production may prompt losses as suppliers are completely overwhelmed. Calls are being vioced for the government to rethink the export restrictions to protect producers and traders from dire consquences. Trouble is also that olive oil cannot be stored as long as other agricultural products and the longer it is stored the more difficult it is to meet EU standards.
Aim was also to boost exports of value-added packaged olive oil. This, however, failed as packaged olive oil exports only rose by 5%. Total exports, in fact, slumped by 75% (31,000 mt) to 8,000 mt in November-December 2023 as opposed to the same period in 2022. With last year's carry-over stock amounting to 150,000 mt total olive oil supplies range as high as 360,000-380,000 mt in the current season. As around 160,000-180,000 mt are needed for domestic consumption export supplies amount to 200,000 mt. Harvesting is about to start and the export restrictions will adversely impact the market and force growers to sell at low prices in a highly competitive environment.
Decline in table olive exports
Table olive exports dipped by 20% to 28,324 mt in the first four months of the season (Oct-Jan). As prices have risen sharply the export value, by contrast however, surged by 21% to USD 73.6 million. Black olive exports thereby amounted to 22,540 mt worth USD 58.8 million and green olive exports to 5,784 mt worth USD 14.8 million. Shipments to Germany, Turkey's leading export destination, generated USD 20.6 million, followed by Iraq with USD 11.6 million and Romania with USD 8.0 million. Next in line are the USA with USD 4.5 million and Bulgaria with USD 3.5 million.
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Table olive exports, Turkey |
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Type |
Volume in mt 2022/2023 |
Value in USD 2022/2023 |
Volume in mt 2023/2024 |
Value in USD 2023/2024 |
Diff. mt |
Diff. USD |
|
Black olives |
26,565 |
45,395,632 |
22,540 |
58,845,283 |
-15% |
30% |
|
Green olives |
8,943 |
15,517,762 |
5,784 |
14,803,755 |
-35% |
-5% |
|
Total |
35,509 |
60,913,395 |
28,324 |
73,649,038 |
-20% |
21% |
|
Aegean Olive and Olive Oil Exporters Association, 01/10-31/01 |
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