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Turkish olive oil producers are facing a critical harvest season as rising operational costs and stagnant market prices threaten to leave crops unpicked in the fields. Despite forecasts of a bountiful season, the industry is grappling with a severe economic imbalance: the price of olive oil has stabilized at approximately 200 TL per liter, while daily labor wages have surged to 2,000 TL.
Ahmet Çetin, Chairman of the Edremit Chamber of Commerce, warned that the combination of high inflation, soaring labor expenses, and declining Euro-denominated global olive oil prices could halt harvesting activities. He explained that most Turkish olive groves are situated on rugged terrain unsuitable for mechanical harvesting, making manual labor the primary and most expensive production factor.
Çetin highlighted a significant price disparity over the last three years. Three years ago, olive oil was priced at 300 TL per liter while daily labor costs were around 500 TL. Today, the oil price has dropped to 200 TL as labor costs quadrupled. This shift means producers may incur losses even if they harvest the crop themselves, leading some regions, such as Akhisar, to suspend harvesting operations entirely.
To mitigate the crisis, Çetin called for a government subsidy of 50 TL per liter, noting that the European Union provides support of approximately one Euro per liter. He suggested that implementing a subsidy system based on invoiced products would help formalize the economy and increase tax revenues, benefiting producers, consumers, and the state alike.
While the Edremit Chamber of Commerce expects a production volume of 500,000 tons of olives this season, concerns remain over an annual surplus of 200,000 tons of oil. Çetin urged the industry to target alternative markets in East Asia, the United Kingdom, and the Turkic Republics to bypass high tariffs and export quotas in the US and EU. He also emphasized the need for cash incentives for exporters to maintain global competitiveness and long-term policies to protect the sector.
Source: Turkey Ajel