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Turkish Olive Oil: How Can its Global Competitiveness Be increased?

   Kadakoğlu, Bektaş; Karlı, Bahri

This study aims to examine the development of olive oil production and trade, analyze the competitiveness, and develop recommendations to increase competition. Although world olive oil production has followed a fluctuating course in the last two decades, it has been determined to be in an increasing trend. Approximately 3.3 million tons of olive oil are produced in the world every year. Türkiye ranks fifth in world olive oil production with a share of 7.12%. Although Türkiye's olive oil production has been increasing over the years, there are approximately 200-250 thousand tons of products every year. In 2021, world olive oil exports amounted to 8.58 billion dollars and imports to 8.75 billion dollars. Türkiye ranks sixth in the world regarding the amount and value of olive oil exports. Türkiye's olive oil export market is concentrated in the United States of America (USA) and European Union (EU) countries. In 2021, Türkiye's olive oil exports were 27.98% to the USA and 20.63% to EU countries. In the study, the competitiveness analysis of olive oil was calculated for the years 2010-2021, and Balassa's Revealed Comparative Advantage Index (RCA), Vollrath's Relative Export Advantage Index (RXA), and Laursen's Revealed Symmetric Comparative Advantage Index (RSCA) were used in the analysis. The average index values obtained for Türkiye are calculated as 2.06 for RCA, 2.09 for RXA, and 0.278 for RSCA. It was determined that although Türkiye's competitiveness in olive oil exports is at a low level, it has the potential to compete with rival countries. In the study, some suggestions were developed for Türkiye to increase its competitiveness. The main recommendations are to improve the quality of olive oil production by differentiating it through tools such as geographical indication registration and to liberalize trade by removing practices that restrict foreign trade (such as quotas and taxes) through agreements between countries.

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