In a move seen as an opportunity for the Turkish firm to circumvent the European Union’s import quota on Turkish olive oil, Marmarabirlik, is preparing to open storage and processing facilities in Cologne, Germany.
Turkey’s leading olive oil producer, Marmarabirlik, is preparing to open storage and processing facilities in Cologne, Germany.
The move is widely seen as an opportunity for the Turkish firm to circumvent the European Union’s import quota on Turkish olive oil.
We expect that Marmarabirlik will become the export champion of the olive olive oil sector on behalf of our active 30,000 producers and eight cooperatives.- Hidamet Asa, chairman of Marmarabirlik
“We have been carrying out transit trade since 2015 to overcome the EU’s export quota on Turkey’s olive oil,” Hidamet Asa, chairman of Marmarabirlik, told a Turkish state run news agency. “Our new storage facility in Cologne will be an important logistic center for transit trade. We will sell olive oil from Cologne to Europe via the Marmarabirlik brand.”
By basing their EU distribution center in Germany, Marmarabirlik can press olives into olive oil and more affordably re-export it to other EU member states.
Marmarabirlik would also be able to use the facility for processing olive oil and re-exporting it outside of the EU without paying any tariffs.
“The ‘inward processing regime’ allows EU operators to process imported oil and re-export it outside the EU without paying duties on oil imported for processing,” Kinga Malinowska, a European Commission trade spokeswoman, said.
According to the International Olive Council, olive oil production in Turkey increased 18 percent in the 2016/17 season and is expected to further increase by 62 percent next year.
© Olive Oil Times | Data source: International Olive Council
Marmarabirlik, which is a cooperative association composed of producers and vendors, is the world’s largest table olive producer and has seen its income quadruple in the past seven years.
Asa said that the cooperative had sold about 16,000 tons of products in the first six months of the 2016/17 business year.
“We expect that Marmarabirlik will become the export champion of the olive and olive oil sector on behalf of our active 30,000 producers and eight cooperatives,” Asa said. “Our aim is to increase our production and augment our income by increasing our exports by $30 million in the coming years.”
The storage facility is expected to cost €2 million with the German Development Agency providing grant funds to spread the cost.
“A high-capacity storage facility is planned to be built on 3,000 square meters of land which will be provided on a very favorable conditions from the municipality of Cologne,” Asa said. “Thanks to the new investment… Marmarabirlik’s foreign sales will increase incrementally.”
European countries are just one of the markets that the Turkish firm is targeting with its olive oil. Asa said that Marmarabirlik also aims to increase exports to other Middle Eastern and Asian countries.
“The availability and diversity of our products in European markets will increase the sales of Marmarabirlik abroad,” Asa said. “We have set up the Middle East, Arabian Peninsula and Far East markets as the targets and started to work on these regions in order to increase our sales.”
More articles on: European Union, import/export, tariffs
Aug. 7, 2023
Italy Becomes Largest Market for Tunisia’s Organic Olive Oil Exports
Tunisia's organic production is increasingly favored by large Italian bottlers.
Jun. 26, 2024
Rising Olive Oil Imports Contribute to Spain’s Trade Deficit with Argentina
While Spain’s agricultural trade deficit fell by 33 percent between 2022 and 2023, olive oil imports increased by nearly 230 percent due to a poor harvest and rising prices.
Feb. 20, 2024
New Research Rekindles Debate on Nutri-Score’s Effectiveness
The OECD found Nutri-Score could save money on healthcare. Dutch researchers questioned the integrity of studies supporting the labeling system.
Sep. 14, 2023
Syria Restricts Olive Oil Exports as Harvest Outlook Worsens
Olive oil production in Syria is expected to fall by 50 percent in the 2023/24 crop year. Authorities have banned exports to prevent price rises.
Oct. 31, 2023
Global Olive Oil Production Set for Second Straight Year of Decline
The world’s seven largest olive oil-producing countries are expected to yield 1.97 million tons in the 2023/24 crop year, 23 percent below the average of the previous four campaigns.
Jun. 12, 2024
Turkey Eases Export Ban Following Intense Lobbying
Turkish producers will be able to export 50,000 tons of bulk olive oil until November. With forecasts of bumper harvest, the sector wants the ban lifted completely.
Apr. 11, 2024
Turkish Producers Pray Export Ban Ends with Ramadan
While the prohibition on bulk exports has helped control domestic prices, producers worry it has hurt their credibility with international partners.
Aug. 2, 2023
Leading Tunisian Bulk Olive Oil Exporter Pivots to Adding Value
The exporter seeks to expand shipments across Asia, while investing in sustainable farming to promote soil water retention capabilities at home.