Turkey Lifts Ban on Bulk Olive Oil Exports

Turkey’s olive oil producers are preparing to ramp up exports to the United States, Japan and Australia following the complete lifting of bulk olive oil export restrictions, reports the Olive Oil Times on October 31.  Olive oil producers aim to compete with European producers on quality and price while making significant gains in other key markets, including Saudi Arabia, the United Arab Emirates, China and Japan, where demand is increasing, the report said. 
The ban was lifted 13 months after the Turkish government suspended bulk olive oil exports to stabilize domestic prices and encourage the export of individually packaged olive oil, which commands higher prices than bulk olive oil.  “The restriction on olive oil exports in Turkey was done to prevent prices from rising in the domestic market,” said Mustafa Tan, president of the National Olive and Olive Oil Council.  However, he said the effect was not seen much as prices in the domestic market are related to world prices.
In June, after intense lobbying by producers and exporters, Turkish olive oil producers faced excessive inventory levels after several years of robust harvests and some difficulties exporting individually packaged olive oil.  Thus the government eased the ban, allowing 50,000 metric tons to be exported until November.  Some supply chain experts expect that Turkish producers could immediately fill the void left by two years of below-average harvests in much of the Mediterranean. Spain and Italy will have virtually no olive oil stocks until the harvest peaks in November and December.