Olive oil producers focusing on US, Australia, Japan

With restrictions on exports eased and output expected to surge this year, Türkiye's olive oil producers are focusing on large markets, such as the U.S., Australia, and Japan.

Türkiye ranks fifth in olive oil production and third in olive production globally.

The government last week canceled a previous regulation that cut the Turkish lira equivalent to 20 cents per kilogram for all kinds of olive oil exports.

The Trade Ministry in 2023 also imposed the ban on bulk and barrel olive oil in the face of the steep price increase in the local market. But later, this ban was also eased earlier this year.

"This was a long due but still a welcome move," said Davut Er, president of the Aegean Olive and Olive Oil Producers' Association, of the government's latest decision to remove the cut on export.

The local industry had lost customers in the world markets due to export restrictions, Er added.

Global olive oil production is surging this year which has already led prices to fall from 9 euros per kilogram to 7 euros, he said.

Er acknowledged that the competition will be stiff in the global market, adding that prices will largely depend on what price Spain, a major player, will set for olive oil.

"We are now focusing on new markets such as the U.S. Australia and Japan," Er said.

Hasan İstikbal, owner of the Asiltane brand, agrees that the removal of bans will give a boost to olive oil exports.

He recalled that his company lost a potential client in Japan when the restrictions were imposed, and the Japanese company turned to Greece and Spain to buy olive oil.

"We contacted them again when the ban was removed. We wanted to reestablish commercial ties with them," İstikbal said.