Turkish Extra Virgin Olive Oil: A $150 Challenge

Turkish extra virgin olive oil is well-known worldwide for its high quality and positive health results. In this case study, I will explain the sourcing process for 2 tons of cold-pressed Turkish extra virgin olive oil with a low acidity (from 0.2% to 0.5% at the moment of export). The client purchased our “Price Quotes from Turkish Manufacturers for 1 Product-Premium Package.”

Client’s Order Details for Turkish Extra Virgin Olive Oil

A France-based client applied to us to source cold-pressed extra virgin olive oil with a very low acidity (from 0.2% to 0.5% at the moment of export) from Turkey. The client’s requests for 2 tons of Turkish extra virgin olive oil were:

• No packing request in the first shipment, but private label production later.
• Preferably fresh olive oil from the manufacturer’s own olive fields, nearby the squeezing plant
• Cold-press
• Stable acidity for a long period of time, for a high-quality olive oil for up to 2 years
• Certification and a sample chemical analysis report are to be submitted before each shipment, free of charge.
• The ex-works (EXW) quotation is acceptable.
• Price offers will have validity for a minimum of 15 days.

Olive Oil Market in Turkey

Based on my previous personal consulting experience and official reports on Turkish olive oils, I can summarize the current olive oil market in Turkey as follows (source: SGB, Turkiye Directorate of Agricultural Economics and Policy Development Institute, Olive Oil Report, 2021):

• Olive oils with 0.2–0.5% acidity levels are called extra virgin olive oils. Any olive oil up to 0.8% acidity level is called high-quality natural virgin olive oil based on the international olive oil classification.
• Turkey manufactures approximately 220,000 tons of olive oils.
• 80,000–100,000 tons are produced as natural virgin olive oil (up to 0.8% acidity).
• 120,000–140,000 tons are used as refined olive oils.
• Of the refined 140,000 tons, approximately 50,000 tons are used for making riviera olive oils.
• Extra virgin natural olive oils with the desired 0.2-0.5% acidity account for approximately 3% of the total olive oil production, which is around 6,000–7,000 tons a year.

Therefore, the request for 2 tons of extra virgin olive oil can be regarded as a large order for Turkey.

The client wanted a long-term Turkish extra virgin olive oil supplier, so this was not a one-time job. We completed the task in 16 days and charged $150 for it. In this case study, I will show you how we did it and what the client decided after our detailed report.

More on Olive Oil Quality

Olive oil is one of the most popular and healthy edible oils in the world. Olive oil quality determines the use areas of olive oils. It is the greatest cooking oil, in my opinion. It can even be used to care for babies and treat a variety of medical conditions. Olive oil is divided into categories based on its quality, purity, and acidity.

The finest grade of olive oil is extra virgin olive oil, which is made from the initial cold pressing of fresh olives without any chemical or heat treatment. Therefore, extra virgin olive oil is the best in terms of oil quality.

Why Turkish Extra Virgin Olive Oil?

Turkish extra virgin olive oil has a low acidity level, usually below 0.8%, and a high content of antioxidants, vitamins, and polyphenols. Due to the favorable natural climate of Turkey, Turkish extra virgin olive oil has a superior taste, aroma, and color, and it offers many health benefits.

The highest quality of Turkish extra virgin olive oil is produced in the Aegean and Mediterranean regions of Turkey. With a long history in olive oil production, Turkey has a wide range of olive oil types, such as extra virgin, virgin, refined, and pomace. Turkey also offers many advantages for sourcing olive oil, such as low production costs, high quality standards, and easy access to markets.

The Challenges of Sourcing Private Label Turkish Extra Virgin Olive Oil

Sourcing Turkish extra virgin olive oil is not an easy task, as it involves some challenges and risks. In the production of extra virgin olive oil, the farmer should bring their olives to the pressing company within 4 hours at most following harvest. The squeezing should be done below 27 degrees Celsius. Lastly, the olive production process is really hard, and the olives should be green (not mature), causing less oil output.

Olive Oil Private Label Issue

The most important challenge was the private label issue. In Turkey, the leading olive oil manufacturers are Komili, Taris, Yudum, Kristal, and Torku. These companies collect almost all of the highest-quality olive oils, and they do not work with private labels. Therefore, we had to contact smaller-scale olive oil manufacturers. I also found out that private label production was not a common or popular practice among Turkish extra virgin olive oil manufacturers.

Olive Oil Acidity of 0.2%

The olive oil acidity of 0.2% was hard to find. Only one supplier could guarantee this low acidity in their olive oil. Turkish extra virgin olive oil was more expensive, scarce, and variable than other types of olive oil. Not all olive oil manufacturers had extra virgin olive oil, and not all extra virgin olive oil had the same quality and acidity level.

Free Certification Before Each Shipment Issue

The client was too careful about certification. These certifications were already requested by Turkish customs during the export, and finding certificated products was not an issue at all. However, most of the companies did not want the certificates to be costless before each shipment.

Costs of certificates for Turkish extra virgin olive oil as of February 2023:

• Pesticide residue analysis costs €50.
• The Tarex application fee is 1165 TL.
• The health certificate is 450 TL.
• Customs costs are around EUR 180.
• Specialist transportation is 1500 TL, for a total fee of approximately 5000 TL (around EUR 200).

Determining the reliable oil manufacturers was the easiest part because I, myself, have worked in this area before and have a sound knowledge of the olive oil market in Turkey, the locations of the highest-quality olive oils, and the capacity of olive oil manufacturers based on their regions. Besides, certification makes it easier to spot unreliable suppliers.

Our Methods to Find Turkish Extra Virgin Olive Oil Manufacturers

We, as a team, used various sources and tools, such as Google search and my previous reports to compile a list of potential Turkish extra virgin olive oil manufacturers. I also used official reports and olive oil associations’ websites to find and learn more about olive oil production and market in Turkey.

We filtered and sorted the list of potential Turkish extra virgin olive oil manufacturers according to the product specifications and the criteria that the client provided us.

Finalizing the List of Turkish Extra Virgin Olive Oil Manufacturers

Turkish extra virgin oil manufacturers that I contacted by mail or phone were:

• Olive oil manufacturers that have olive lands and manufacture their own olive oil
• Olive oil contractors that have some olive fields but also cooperate with other olive oil manufacturers

After I had a shortlist of potential olive oil manufacturers, I contacted them by phone or email to ask for more information about their products, prices, and private label services. I received various responses from the manufacturers, some of them positive and some of them negative. I reported all these conversations and the shortlist of 23 manufacturers and 2 contractors. After contacting these companies, I listed the 10 Turkish extra virgin olive oil manufacturers, and I could hardly collect six price offers that included all details.

Results

We submitted 6 price offers for 2 tons of Turkish extra virgin olive oil. Here are some details of the best two offers. I am not including the prices because they can change based on the exchange rate (It was between €5/kg and €5.4/kg, though). However, it will give you an idea before collecting price offers from Turkish extra virgin olive oil manufacturers.

Turkish Extra Virgin Olive Oil Price Quotes from Izmir

The first olive oil manufacturer was located in the Aegean region, which is known for its high quality and variety of olives and olive oil. They had their own olive fields in Urla and squeezing plant, and they produced fresh and cold press extra virgin olive oil with an acidity level of 0.6% at the moment of export. Here are their offer:

• Low Acidity (max 0.6% free fatty oleic acid)
• Cold-press
• Low peroxide (less than 20 mg/kg) as a guarantee of the freshness of the product
• Certification and sample chemical analysis report to be submitted before each shipment – free of charge
• Turkish extra virgin olive oil annual production capacity: 100 tons
• 22-ton partials (20” fit container)
• The price includes packing, delivery to the Izmir Port, Turkish customs fees, and analyses.
• Validity of the offer: 15 days.
• 60% of the payment is required with the order. The balance payment will be required for the shipment.
• Processing time: 20 days (filling and packing process)
• No minimum order quantity.

They were already exporting to France and submitted a detailed shipment plan to the client. This company offered to coordinate collecting 2 tons from Turkish extra virgin olive oil manufacturers in Izmir and Manisa.

Turkish Extra Virgin Olive Oil Price Quotes from Edremit

The second olive oil manufacturer was located in the Edremit town of Balikesir. This region is also known for its high quality Turkish extra virgin olive oils like Izmir and Manisa. The company had their own olive fields and squeezing plant, and they produced fresh and cold press extra virgin olive oil with an acidity level of 0.8% at the moment of export.

• Low Acidity (0.6 – 0.8% free fatty oleic acid)
• Cold-press
• Certification and sample chemical analysis report to be submitted before each shipment – around €200
• Customs costs for each shipment – around €180
• Turkish extra virgin olive oil annual production capacity: 1,200 tons
• Ex works (factory exit) pricing
• Validity of the offer: 15 days.
• 60% of the payment is required with the order. The balance payment will be required for the shipment.
• Processing time: 16 days (filling and packing process)
• Minimum order quantity (MOQ): 1 ton

The company was also experienced in exporting. This company offered to coordinate collecting 2 tons from the Turkish extra virgin olive oil manufacturers in Balikesir province.

The Decision of the Client

We eventually found two trustworthy Turkish extra virgin olive oil producers. The remaining four offers were not as thorough as these, and the client preferred to concentrate on only these two Turkish extra virgin olive oil producers.

We learned a lot about olive oil and its production and market in Turkey as a team after having difficulty sourcing olive oil with such low acidity and availability for private label manufacture.

I submitted a summary report to the client. The client was very pleased with our work. The client chose the Turkish extra virgin olive oil company in Urla because the owner spoke fluent French and they interacted well.

Related Posts

This is the first post on the Turkish agricultural sector. Therefore, there is no related post as of today. However, you can check out our other case studies to learn more about us. Also, reading the post, “Comprehensive Guide to Private Label Services in Turkey,” will give you an idea of how we work.