Olive oil: price surge exceeds 250%
November 15, 2023 at 10:11 AM ,
Der AUDITOR
Tariş announces purchase price
While the prices for extra virgin olive oil ranged at TRY 81/kg last season, Tariş is now prepared to pay TRY 295/kg meaning that prices have risen by 264%. Intention is to support producers and value their hard work. Prices may also change depending on market developments this season.
Consequently, the free market prices for olives and olive oil have also risen. Green and black olives, which were sold for TRY 40-70/kg last season, are now trading at TRY 80-120/kg depending on size. While the prices for real extra virgin olive oil ranged at TRY 500-725 per 5 kg last season, they are currently expected to rise to TRY 390/kg and to TRY 1,500-,950 for 5 kg.
Record exports in Turkey
There are 171 million fruit bearing olive trees and 31 million non fruit bearing olive trees in the country. Turkey's National Olive and Olive Oil Council estimates that this year's olive oil production declined to 179,300 mt and table olive production to 442,000 mt. Issue is that last year's production reached 421,000 mt for olive oil and 735,000 for table olives and the trees always bear less fruit after a productive year. Yields have declined by 55.7% to 7.9 kg per tree this year and table olive production by 39.8% as compared with last year. For olive oil the decline is even more marked.
Total oil and table olive production reached 1.342 million mt this year. As last season's carry-over supplies as are estimated at 180,000 mt Turkey holds a total supply of around 360,000 mt of olive oil, which is more than enough to cover domestic consumption and export demand. Even if exports retain last year's record level of 150,000 mt and consumption hits a maximum of 160,000 mt, this will leave a carry-over supply of 50,000 mt in 2023/2024.
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