Target of Olive and Olive Oil Exports is 1,5 Billion Dollars

Billion Dollars Target in Olive and Olive Oil Exports
Billion Dollars Target in Olive and Olive Oil Exports

📩 27/01/2021 12:31

Turkey in 41 provinces, 500 thousand families doing olives. While an average of 450 thousand tons of table olives are produced annually, 200 thousand tons of olive oil is produced. 500 thousand families earn their living from olives. In the harvesting, pruning of olives, and the transformation process into table olives and olive oil, an important employment emerges in factories.

The export statistics in the olive and olive oil sector; It is useful to evaluate on a seasonal basis. We left the 31/2019 olive oil season, which ended on October 20, behind with 45 thousand tons of export. Last season, we exported 52 thousand tons of olive oil. There is a 13 percent decrease in olive oil exports. A total of US $ 110 million in foreign currency input was obtained.

Our table olive exports, which ended on September 30, decreased by 7% on amount basis to 84 thousand tons compared to the previous season, while we increased 3% on amount basis and earned US $ 145 million in foreign currency income. This export figure was recorded as the new export record for our industry.

Despite the decrease in quantity, the most important factor underlying the increase in our foreign exchange income was the increase in our unit price for table olives from 1,55 dollars to 1,73 dollars.

We successfully entered the 2020/21 export season. Two months behind in the new season, olive oil exports increased by 20 percent compared to the same period of the previous season, rising from $ 23,1 million to $ 27,8 million.

When the olive oil exports are analyzed on a quantity basis; With an increase of 13 percent, it rose from 9 thousand 734 tons to 10 thousand 951 tons. Turkish olive oil exporters succeeded in exporting the health elixir for 2020 percent more in dollar terms in the 21/7 season.

In the United States caught the biggest increase in Turkey's exports of olive oil. Health elixir exports to the USA increased by 112 percent from $ 5,9 million to $ 12,6 million. The share of the USA in olive oil exports increased from 25 percent to 45 percent.

Table olive exports, which started on October 1, 2020, followed a horizontal course. Table olive exports maintained the $ 2019 million export level in the first quarter of the 20/40 season.

While the export of black olives in table olive exports was 31 million 753 thousand dollars, the export of green olives was recorded as 8 million 241 thousand dollars. Turkey, 1 October - 31 thousand 2020 tons of dates between December 23, 208 has exported table olives.

The total exports of the olive industry in the remaining part of the 2020/21 season increased by 6 percent from $ 65 million to $ 69 million.

While the countries where our olive oil exports are the most in the 2019/20 season are the USA, Saudi Arabia, Spain, Japan and Italy, our target markets can be listed as USA, Germany, United Kingdom, China, India, Iraq, Iran, Japan, Russia and Saudi Arabia. The number of countries and free zones to which we export olive oil has been recorded as 131.

While the countries with the highest exports for table olives are Germany, Iraq, Romania, the USA and Bulgaria, our major target markets are the USA, Germany, UAE, United Kingdom, Bulgaria, Iraq, Iran, Romania, Russia and Saudi Arabia. The number of countries where we export table olives is 119.

Our goal in olive oil and table olives exports is to increase the exports of packaged products and to reach a position to bring 2025 billion dollars to our country in 1.5.

We exported 2019 thousand tons of packaged olive oil during the 20/21 season, which corresponds to approximately 57% of our total olive oil exports.

In table olives, we do 95% of our total olive exports in packaged form. In Turkey the olive and olive oil sector in the world needs to be continuity in production and productivity in order to be a player who dominated.

Spain dominates the olive and olive oil sector in the world. The most important reason for this is that it alone provides more than 3,2 percent of the 50 million tons of olive oil production worldwide.

In order to exist in export markets, you need to ensure the continuity of your product supply. There is a year, it is not possible to maintain continuity when you disappear for a year.

The way to ensure continuity is to increase production. Turkey reached 180 million by olive trees produces an average of 200 thousand tons of olive oil, followed by Spain with 330 million average olive trees can produce 1,6 million tons of oil.

We should increase the 15 kurus for table olive producers, 80 kurus for the olive oil producer to 70 kurus for table olives and 3.5 TL for the olive oil. In this way, the producer will look at the tree better and increase in production will be provided.

The Ministry of Agriculture and Forestry had set a target of 2023 thousand tons of olive oil and 650 million 1 thousand tons of table olive harvest for 200. We underline the need to increase the support of the olive producer in order to achieve this goal.

According to the latest report published by the International Olive Council, in the 2020/21 season, world olive oil production is expected to be 3,5 million 3 thousand tons with an increase of 320%. In Spain, which had a very bad season last season, olive oil yield is expected to be 41 million 1 thousand tons with an increase of 596%. Another important producer country is 21 thousand tons of olive oil with a decrease of 290% in Italy and 65 thousand tons of olive oil with a 120% decrease in Tunisia.

Again, according to the same report, an increase of 2,6% is expected in table olives worldwide. One of the biggest producers, Egypt is expected to produce 6,7 thousand tons with an increase of 800%, 28 thousand tons with an increase of 590% in Spain, and 3,6 thousand tons with an increase of 230% in Greece. In Algeria, another important table olive producer, a production of 4,2 thousand tons is projected with a decrease of 310%. Likewise, Morocco and Tunisia are among the countries where a decrease is expected in table olive production next season.

Turkey, although it depends on the production of table olives in the world with an average annual production of 450 thousand tons're getting a second or third place.

Turkey, the average production of 200 thousand tons of olive oil production with world ranking is going to have the fourth or fifth row.

Although this year's yield has not been officially announced yet, our information and observations from producer regions indicate that the yield will be slightly below our last year's yield.

If we are to look at Turkey's consumption of table olives and olive oil; Turkey, with an annual consumption of 400 thousand tons of table olives throughout the world are among the countries that consume the most table olives.

Consumption of healthy products is a rising trend worldwide. In this process, there is an increase in the demand for olives and olive oil.

As the importance of healthy nutrition is better understood during the pandemic process, there is an increase in household olive and olive oil consumption in developed economies such as Europe and the USA. During the pandemic period, people stayed at home for a long time and started having breakfast again. This process enabled the consumption of table olives to increase.

However, due to the contraction in the tourism & hospitality sector, which are the sectors most adversely affected by the pandemic, the consumption in hotel cafes and restaurants inevitably decreased.

Turkey, at least in the position of olive oil consuming countries per capita in olive oil producing countries. Olive oil consumption per capita in our country is below 2 kg.

Among the producer countries, Greece, Italy and Spain consume more than 15 kg per person. Our goal is to remove oil consumption in the short term level of 5 kg in Turkey. In order to achieve this goal, we demand that the VAT rate of 8% in olive oil, which is a health potion and healing source, be reduced to 1%. The reduction of VAT will increase consumption and thus, health expenditures for cardiovascular and cancer diseases will decrease in the medium and long term and will contribute to the pharmaceutical expenditure budget of our Ministry of Health.

We can summarize the problems of the olive and olive oil sector as follows.

I had previously expressed our expectation to support the manufacturer. We expect the export support given in exports to the olive and olive oil sector to be increased. Currently, 1 TL per ton for packaged olive oil exports of up to 1600kg, and 630 TL for table olives are provided.

This amount decreases as the packaging grows. 1 TL for olive oil in 2-820 kg packages, 425 TL for table olives, 2 TL for olive oil for packages of 5-430 kg, 280 TL for table olives. Since we export our products in gallon type packages to Far Eastern countries, we think that revising the package size parameters between 0-1 kg, 1-3 kg, 3-5 kg ​​will be a great benefit for our industry.

One of the problems of the olive oil sector is the expectation of reducing the 8 percent VAT to 1 percent.

Our export quota of 100 tons in olive oil exports to the European Union should be increased to the level of other producer countries. In the first stage, a quota of 15 thousand tons of quota should be given.

We expect Turkish olive oil to be included in the Free Trade Agreement we made with the UK, which left the European Union.

In order to achieve our goals in olive and olive oil production, we want to support the loss of income that will occur due to the shaving (rejuvenation) of old olive trees under the leadership of our Ministry of Agriculture and Forestry during the years when the farmer experiences product loss.

Planting from varieties (such as Akhisar-Uslu, Aydın-Memecik, Bursa-Gemlik) that are compatible with the weather and soil conditions of the production regions of olive cultivation, which is important for our country's economy, and have completed their adaptation to the regions should be supported. We say that the planting and production of the needed products, especially coarse-grained olive varieties such as Tekir (Donkey), Domat, Memecik, should be encouraged.

Olives are the fruit of poor soils, and most of the olive trees that grow in arid lands in our country lack irrigation infrastructure. In this regard, urgent support of the Ministries is needed for drip irrigation systems, deep well drilling and electricity consumption. In addition, it is of great importance to increase the diesel and fertilizer support provided to our farmers.

We have no doubt that 1 unit of support provided by our Ministry will return to the national economy within 10 years as plus 10 units of income.

When we look at the domestic market in our industry, the most important problem is imitation and adulteration in olive oil. In order to prevent imitation and adultery, criminal sanctions should be increased and those who trade adulterated olive oil should be punished within the scope of qualified crimes. In case the adulteration becomes continuous, those concerned should be prohibited from trading.

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