Davut Er, the president of Aegean Olive and Olive Oil Exporters Association stated that there is a constant increase in the demand towards olive oil, especially in Far East and America.
Er emphasized that 3.2 million tons of olive oil are produced annually in the world and that Turkey is the 3rd in annual olive production with 450 thousand tons of olives while being the 4th in annual olive oil production with 200 thousand tons of oil.
Er stated that Turkey has been investing greatly on olive cultivation industry since 2002 and has increased the number of olive trees to 177 million, he said:
‘’According to the data of Ministry of Agriculture and Forestry, our olive harvest will reach 1 million 200 thousand tons and our olive oil harvest will reach 650 thousand tons with our newly planted trees becoming fertile. If we reach those harvest numbers, Turkey will be the number one in olive cultivation industry, 2nd in olive oil production and also a price maker in exports. We expect our $400 million olive and olive oil exports to be $1.5 billion.’’
The 2020 performance of olive cultivation industry
Er stated that Turkish olive cultivation industry made $141 million export in the first 6 months of 2020, he said:
‘’ Although our exports in the first half of the year decreased by 10 percent compared to the same period of 2019, we demonstrated a more successful performance in June; we achieved $19 million 60 thousand of foreign exchange inflow with a 21 percent increase in June exports. Although the export figures of our sector seem small compared to many industrial sectors; I leave the high added value of our exports, almost all of which are made with domestic inputs, to your discretion.’’
Er, drew attention to the fact that continuity and efficiency in production can be supported by grafting the olive trees and irrigation.
Export restitution support
Er emphasized that as the Aegean Olive and Olive Oil Exporters Association, their primary goal is to increase the export shares of high value-added packaged olives and olive oil. He said:
‘’ I would like to underline that increasing the export restitution support in agricultural products is of great importance in order to increase the export share. The biggest reason why our country has difficulty in competing with rival countries such as Spain, Italy and Greece in both olive and olive oil exports is the cost difference that is against our country. The export restitution support for Turkish exporters is very low. If the export restitution support for olive and olive oil exporters is increased by 100 percent we will be able to compete with other producer countries. Currently, export restitution for per ton of packaged olive oil is up to 1600 TL and up to 630 TL for olive.
Olive oil is very healthy. If value added tax is reduced from 8 percent to 1 percent domestic consumption will increase and thus, health expenditures for the treatment of medium and long term cardiovascular, cancer diseases will also decrease.’’
source: AA / translated by Bazaar Team