Olive Oil: 100 Lira on the Tree, 500 Lira on the Shelf
· GıdaTarım
Olive oil purchase prices in the Aegean Region have fallen to 100 lira per liter, while escalating harvest costs put producers at risk of cutting down their trees.
Trader Prices and the Market Chasm
As the harvest season approaches in Muğla, a significant olive-producing region in the Aegean and Turkey, producers are facing a severe price crisis. In the region known for its high-quality Memecik olives, trader purchase prices have dropped to as low as 100 lira per liter, with prices falling even further depending on the acidity level. The low prices offered to producers are drawing criticism, especially when olive oil on supermarket shelves exceeds the 500 lira per liter mark. Member of Parliament Cumhur Uzun highlighted the market imbalance, stating:
"While the liter price of olive oil reaches 500 lira in markets, the farmer sells olive oil to the trader for 100 lira, a maximum of 150 lira. The farmer is left to the mercy of the trader. However, we are among the countries that can export olive oil. We have abundant produce. Yet, at times, restrictions or bans can be imposed on olive oil exports. The farmer is left in the hands of the trader."
Rising Labor and Harvest Costs
The escalating labor costs involved in harvesting the olives waiting on the trees have completely disrupted the farmer's production balance. Daily wages for pickers during the harvest season have surpassed 4,000 lira, with technical labor costs being even higher. Member of Parliament Cumhur Uzun detailed the on-site expenses:
"Wages for pickers and daily laborers have exceeded 4,000 lira. The fees for those tasked with shaking olives from trees using poles and machines can go up to 7-8 thousand lira. Under these conditions, it is almost impossible to harvest olives from the trees, make money from it, and make a living."
When annual maintenance and fertilizer costs are added, the producer's cost burden reaches an unbearable level.
Producer's Income Loss and Dilemma
Due to high harvest costs and low purchase prices, the traditional 'sharecropping' model in the region has completely stalled. Selling the produced olive oil to traders in the 100-150 lira range is not even enough to cover the labor of those working under the sharecropping system. Summarizing the situation, Member of Parliament Cumhur Uzun said:
"People have now abandoned even 'sharecropping' because they can produce olive oil and sell it for 100-150 lira. This doesn't even cover their daily labor."
Reminding that a similar situation was previously observed with citrus fruits and melons, Member of Parliament Cumhur Uzun urged for producer incentives and for the product to be purchased at its true value, warning:
"The product remains on the branch because it's not worth harvesting. Producers are forced to cut down their trees."