Europes Olive Oil Crisis and its Effects on Turkiye.
According to the International Olive Council, the price of a liter of extra virgin olive oil in Spain is 7.97 Euros, an increase of 80.2 percent compared to the same period last season. In Italy, the price increased by 63.8 percent to 8.7 Euros, in Greece with an increase of 123.2 percent to 7.7 Euros, and in Tunisia the price of extra virgin olive oil reached 8.2 Euros.
From Turkiye's perspective, cost increase stands out among these factors. In terms of production, 2022 was a year of record production. In 2023, there is an average production even though it is a "no year". One of the important factors in the price increase is the increase in foreign demand. The demand for olive oil in Turkey increased due to the production crisis in the world's largest olive oil producer, Spain, and the second-ranked Italy. Additionally, when oil prices increased in these countries, they also increased in Turkey.
Olive oil production decreased by 767 thousand tons in Europe in 1 year.
Looking at the last five-year period, the total olive oil production of the European Union is over 2 million tons on average.
Olive oil production decreased to 1 million 504 thousand tons in the 2022-2023 season, which went down in history as the driest year in the last 500 years. Production decreased by 767 thousand tons in just one year. This decline and the rate of decrease in production continue in the 2023-2024 season, although it is not clear.
World olive oil production has fallen below 3 million tons for the first time in recent years.
When we look at the countries that import the most olive oil in the world, the United States, Brazil, Canada and Japan are in the top four places. America's annual import varies between 350 - 399 thousand tons. While 399 thousand tons were imported in the 2021-2022 season, imports decreased to 360 thousand tons in 2022-2023. Brazil's annual import is around 100 thousand tons. Brazil, which imported 100 thousand tons in the 2021-2022 season, imported 85 thousand tons in the 2022-2023 season. While Canada's average import was 55 thousand tons, it decreased to 50 thousand tons in the same period. Japan's olive oil import, which imports an average of 65 thousand tons annually, reached 57 thousand tons in the 2022-2023 season.
