Economy in Turkey: Olive oil prices which are on the rise may reach 600 liras per liter

The purchase price of olive oil has increased from 74 liras to 295 liras in one year and is now on the shelves at 315 liras. Leading figures in the industry suggest that the price could exceed 500 liras.

According to a report by Ekonomim, olive oil experienced a golden season last year in terms of both price and yield. This season, a significant decrease in yield is expected. The main reasons for this are low production and a high inflationary environment.

According to industry representatives, there will be a ‘significant increase’ in olive oil prices. Around this time last year, the price of 1 liter of olive oil was approximately 115 liras. The current price has exceeded 300 liras. It is estimated that it could reach 600 liras.

ONLY SOLUTION IS FOR THE GOVERNMENT TO SUBSIDIZE

After announcing the purchase price of olive oil as 295 liras, the Aegean Olive and Olive Oil Producers Federation stated that they could make a new price regulation if necessary.

The President of the Edremit Gulf Olive and Olive Oil Producers Federation, said that the price announced by Tariş corresponded to 300% of last year, and continued: “As stated by the National Olive Oil Council (UZZK), there is about 60-65% less product in Turkey compared to the previous year. Moreover, the quality is much lower than in previous years. There is both a shortage of good oil and low production. If prices continue to rise, we will lose our consumers. The retail price is currently around 400 TL, if this scarcity continues, it will be around 500-600 TL. This will alienate us producers from our consumers. Turkey’s per capita olive oil consumption, which has reached 1.8 kilograms, will decrease significantly. This poses a danger to the sector in the coming years. Olive oil producers have sold their products below their value for years. The only solution is for the government to subsidize. This is the only way to stop the decline in consumption.”