Turkey’s olive growers mine liquid gold

November 21, 2024, 5:33 PM

Olives being harvested in the Eceabat region of northwestern Turkey

Bumper crop after poor 2023
Turkey second only to Spain
Rise in smaller producers

Turkey is likely to set a new record for olive oil output this year, as millions of new trees planted in a drive to expand supply reach maturity.

The crop should consolidate the country’s position as the one of the world’s largest olive oil producers.

This year, Turkey is on course to produce around 475,000 tonnes of olive oil, according to Dr Mustafa Tan, head of the National Olive and Olive Oil Council (UZZK), the peak industry body, more than double last year’s 200,000 tonnes.

While much of the difference a result of 2023 being a down year in the olive production cycle — the crop typically experiences biannual peaks and troughs — at least some of the higher output for 2024 is a result of concerted efforts to boost production through new plantings, he told AGBI.

“This is in line with the work of our sector and the Agriculture Ministry to make Turkey the number two olive producer in the world, after Spain. We are not there yet but we are heading that way.”

olive oil production in turkey — Olive oil production. Many Turkish producers were forced to sit out last year

Turkey has more than 200 million olive trees planted, double the number from a few decades ago, according to UZZK data. Of these, 172 million are mature and fruiting, with another 32 million newer plantings.

One factor driving new plantings is the increase in smaller producers bringing out their own branded oils, rather than the route taken by most traditional growers of selling their harvest to industrial scale processing companies.

Olives offer a range of product options, including table olives, oil and inputs for soap, according to Dilara Güngör, a partner in Beyada Olive Oil, a boutique organic producer based in the northwestern Eceabat district, which mainly targets the domestic market.

There is also the long-term earnings potential, an incentive that is helping to drive the move away from other crops, she said.

“Olive oil has better returns compared to other agricultural products,” Güngör said. “Our olive trees are only five years old but we are already getting returns. And, compared to fruit orchards where trees have a short lifespan, olive trees live forever.”

This season’s record high production levels come as Turkey returns to the international oil market from which exporters were largely excluded last year.

The lower harvest from the 2023 season – along with soaring food prices in the domestic market which fed into consumer inflation topping 60 percent in the third quarter that year – prompted the Turkish government to impose a ban on bulk exports last August to ensure local demand was met and costs curbed.

While the ban flattened domestic oil prices, it also meant Turkish producers were unable to take advantage of a global shortage of oil, restricting earnings and seeing other producing countries move into established export markets.

The ban – which was lifted earlier than planned in September rather than October as scheduled – also meant Turkey built up a significant reservoir of excess oil.

Some estimates put the lake at 100,000 tonnes, not far short of the average annual domestic consumption of 120,000 tonnes.

Though this will leave Turkish producers with most of this season’s pressing available for export, many other olive oil producing nations have also had a strong growing year.

Output from market leaders Spain and Italy may fall, in the former due to devastating flooding in late October and in the latter, because of widespread drought.

Increased global production has caused prices to fall recently, dropping from highs of €9 a kilo to €7.4, though this remains higher than the long-term average of €5.0, a positive incentive for Turkish producers as they return to the international markets.