IOC May Market Newsletter

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MARK KET NEWSL LETTER No 50 – Ma ay 2011

TURKEY: OLLIVE GROWIN NG IN EXPAN NSION After rejoinin ng the memb bership of the Internation nal Olive Cou uncil just ove er a year ago, Turkey will be hosting g the 17th extra aordinary se ession of the Council, to be b held in Isttanbul betwe een 27 June and 1 July 2011. For thiss reason, we have h chosen n Turkey as the focus for this month’s s newsletter. The olive trree has bee en cultivated d in Turkeyy since time e immemoria al. Its signifficance in th he country’ss agriculture iss apparent frrom the aid granted g to th he sector by the Turkish agriculture m ministry, whic ch has led to o a 35% increase in the nu umber of olivve trees with hin the space e of the last six s years. Tu urkey’s goal is i to become e the world’s second s bigge est producerr, after Spain n. Olives are grown on 791 000 ha of land, of which w 10 500 0 ha are dediccated to orga anic farming and a further 7 300 ha are a awaiting organic o certiffication. Orch hards are forr oil productio on in 72% of o the crop area, versuss 28% for ta able olive production, p a although this s percentage e breakdown tends t to varyy from one se eason to the next. The av verage breakkdown for the e last five cro op years hass been 73% and a 27%, resspectively. In n the last five e years, the area a under olives o has exxpanded by +129 000 ha a (+19.5%) an nd industry fo orecasts are for it to swell to 1 000 00 00 ha by 2015. The modern nisation of the olive oil processing industry is also eviden nt from the changes in the figures. According to o the statisticcs available in 2005, Turkkey had 1 03 30 olive oil mills, m 430 of w which were equipped with h modern conttinuous-proccess systemss. By 2010 th here were 1 250 mills, off which 1 10 00 were mod dern two and d three-phase facilities, 50 0 operated presses p and super-presse es and 100 were w traditio onal mills. Th here are 400 0 olive oil refin neries and nine olive-pom mace oil extra action plantss. Olive oil pro oduction in Turkey T has ju umped up and down due to the phe enomenon o of alternate crop c bearing. However, in n the last thrree seasonss, it has reco orded a constant increase (see graph below). In 2009/10 itt produced 14 47 000 t of olive o oil, equa ating with 5% % of world prroduction and ranking it sixth behind Spain, Italy, Greece, Syrria and Tunissia in that ord der. For 2010/11, it expe ects to produ uce 160 000 t, showing a season-on-season increase of +9% %. According g to official estimates, Turkey T expe ects its outp put of olive oil o to rise to o 300 000 t ovver the nextt five years. Turkish table olive prod duction has climbed c by 3 39% in the last five crop p years, rising g from 280 000 t in 2005 5/06 to 390 000 0 t in 2009 9/10. This la ast tonnage rrepresents 16% 1 of world d production, placing Turkkey in third place p behind d Spain and Egypt. Fore ecasts signall a level of production p off 650 000 t byy 2015. Tu urkey – Olive oil (1990/91-2010 0/11) (1 000 t)

Tu urkey – Table olives (1990/91-2 2010/11) (1 000t)

According to o industry sources, s desspite the exxcellent outlo ook for olive e oil producction in Turk key, olive oil accounts forr only 9% off the 1.3 million t of vege etable oils co onsumed in the country.. This low level is due to o poor consum mer awarene ess of the he ealth-promotting attributes of olive oil. However, when the Tu urkish health h authorities started s to advvise Turks to o include olivve oil in their diet, consu umption bega an to rise, go oing up from m 50 000 t in 2005/06 2 to 110 1 000 t in 2009/10. Pe er capita con nsumption wa as 1.4 kg in 2010 but is expected to o reach 5 kg by b 2015. In 2009/10, 260 000 t of table olives were consumed in Turke ey, showing an increase of +8% from m the season n before. In pe er capita term ms, consump ption works out o at 3.5 kg, and is foreccast to climb to 6 kg by 20 015. In 2009 and d 2010, combined exporrts of olive oil o and table olives accou unted for resspective 1.8% and 1.5% % shares of total t Turkish h agricultura al exports. This T dip in exports ha as been offsset by high her domesticc consumption n. In 2009/10 0, Turkey exxported 29 50 00 t of olive oil, chiefly to o the EU/27,, USA, Saud di Arabia and d Japan by de escending ord der of volume. In the sam me season it exported 65 5 543 t of table olives. Source: Interna ational Olive Cou uncil

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