Turkish exporters in despair over accumulated stocks of olive oil from the export ban

The export ban imposed by the Turkish government – Breaking news: Turkey imposed an export ban on its olive oils (1/8/2023) may have been a good measure for the grassroots as it stopped the skyrocketing prices on the domestic market, but at the same time it was also very bad news for traders and exporters, especially in a season (i.e. 2022/23) when increased international demand (from Spain and Italy) coincided with high prices and a record Turkish production, estimated at 350,000, which is the same as the Greek production last year.

Since then, the export ban has been in and out of the news. Turkey is extending the ban on olive oil exports while stocks are piling up and traders-exporters are in despair. Even though this year’s production has the same drop as Greece’s – not even 150,000 tons – it still adds tonnage to the tanks.

In bulk and standard

The ban applies only to bulk olive oil while standardised oil is free. However, it is a small proportion anyway, nor is it easy to reach agreements in a few weeks and months with the major retail networks in the countries of Europe, the USA and everywhere else. An attempt to ‘circumvent’ the ban by exporting quintals has had very little impact.

The prices

According to Olimerca, the price of virgin olive oil had fallen at the end of the year to around 8.65 euros per litre, and then rose to above 14.4 euros, even reaching 20.18 euros, while in February prices fell to between 11.53 and 14.41 euros. One of the reasons given is that companies offer their products at lower prices in order to reduce their stocks and to avoid a deterioration in quality. It should be noted that Turkish olive oil has a strong presence on the international market, mainly in the quality category of industrial (lampante) and refined olive oil.

The prospects

If the estimates that there may be more than 120,000 tons of stocks in Turkey are correct, then their supply to the European market would be a “manna from heaven” for the Italian and Spanish industries, reversing the current situation. Many link this possibility to the upcoming Turkish municipal elections on 31/3 and a favourable result for the ruling party to turn the current red light of the ban green.

Source: https://www.olivenews.gr/el/agora-times/oi-toyrkoi-exagogeis-se-apognosi-ta-syssoreymena-apothemata-elaioladoy-tin-apagoreysi-exagogon/

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