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Olive and Olive Oil Processing

A developing sector in Osmaniye offering opportunities for entrepreneurs.

Olive and olive oil production in Osmaniye is a newly developing area with strong indicators that this growth trend will continue. Meetings with representatives from DOĞAKA, KOSGEB, and the Provincial Directorate of Food, Agriculture and Livestock, as well as statistics and breeding studies in the region, support this observation.

As of the end of 2014, Osmaniye ranked 6th in olive production in Turkey. Based on 2015 data, Osmaniye is the 13th largest province in terms of land area and number of olive trees. Another factor making olive cultivation important for Osmaniye is production efficiency. In 2015, the average yield per tree (~19 kg/tree) in Osmaniye was significantly higher than the national average (7.9 kg/tree) and the TR63 region (13.5 kg/tree).

A study by İş Bank in 2012 ranked Osmaniye 57th in Turkey in terms of socio-economic development, while a previous report by the Ministry of Development ranked it 53rd. When this is considered alongside Osmaniye’s 6th place in olive production, it’s clear that the region has a comparative advantage.

All this data points to sustainable growth expected to continue in the coming years. The need is to transform olive and olive oil products (including alternative products like cosmetics) into higher-value products or to add new products to the value chain.

According to 2014 data from the Ministry of Food, Agriculture and Livestock, Osmaniye has 12 olive oil producers, 6 fermented and pickled olive producers, and 5 companies that produce both.

Of the olive oil companies, 3 are in the Central District, 3 in Düziçi, 3 in Toprakkale, 2 in Kadirli, and 1 in Hasanbeyli. All of the fermented and pickled olive producers are located in the Central District. Of those producing both olive oil and fermented/pickled olives, 3 are in the Central District, and 2 are in Kadirli and Düziçi.

One of the key drivers of demand for olive and olive oil in Osmaniye is the ongoing war in Syria. Interviews revealed that the demand once met by imports from Syria is now being met by Osmaniye.

Fieldwork also revealed that some of Osmaniye’s olive oil is purchased by companies based in Bursa and marketed under that region’s brands.

Due to waste disposal issues, large-scale olive oil production is not seen as suitable for İŞGEM’s industrial conditions. However, value-added products made from olives and olive oil (e.g., cosmetics) can be produced at İŞGEM.

Therefore, a value chain analysis has been proposed to explore the full potential of Osmaniye’s rapidly developing olive and olive oil sector and to identify potential opportunities both for İŞGEM and the region as a whole.