Determination of the factors affecting the formation of olive and olive oil market price: Case of Muğla

The agricultural products market has a complex structure due to the general characteristics of the sector, and the prices of agricultural products are generally uncertain before production and production is planned in line with the prices of the previous year. Many factors, especially the increase and decrease in production, directly and indirectly affect the price formation of agricultural products. Olive is one of the agricultural products most affected by the increase and decrease in production. The fruits obtained from olive production are processed and reach the consumer as table olives and olive oil. With the processing of olive fruits, products with high added value are obtained and the development and sustainability of agriculture-industry integration is ensured. Today, the increasing importance of Mediterranean cuisine in terms of gastronomy and health causes an increase in the interest and demand for olive oil. Changes in the amount of production are reflected in the price of olives due to both its own characteristics and natural structure. The price formation of olive and olive oil, which is an important product in Turkey, takes place in the channels of producers, processors, and cooperatives. Therefore, the main purpose of this study is the aim is to determine the factors affecting the price formation according to the stakeholders in the olive and olive oil market. In the study, data obtained through face-to-face surveys with 150 producers, 30 olive oil processing plants and cooperatives purchasing olive oil from the region in Milas district of Muğla province, which has an important place in olive oil production in Turkey, were used. According to the results obtained from the study, 3 factors were found to be effective in olive price formation, 4 factors in olive oil price formation, and 4 factors in olive and olive oil price formation.