Olive oil is looming in the kitchens of more tables and more worldwide. Oil is expensive by chefs, enjoyed on salads, and healthy for the heart. Over the past two decades, this combination of factors has led to increased consumption far beyond the Mediterranean, the traditional home of the olive and its oil. There was a time that almost all olive oil has been produced and consumption around the Mediterranean and the Middle East. Production was sufficient to locally (Mediterranean) application. As demand rises around the world will be planted olive trees and olive oil produced outside the country that have historically been the main producers. It is a big trend that will need capital and those who have the foresight may well benefit from investing in growing, refining, export, distribution or sale of olive oil in regions as diverse as the United Kingdom, India, Japan, China or the United States.
Olives and making oil
People have been making olive oil as long as 5000 years according to archaeological evidence in Greece. Today, the olives are grown and processed into oil in Spain, Italy and Greece are major producers at 36%, 25% and 18% of production in the world according to recent figures. As demand for more and more olive oil climbs these countries will probably not be able to answer the call. Greece, for example, spends 60% of its arable land to olive groves already.
After the three major producers of olive oil, come Tunisia (8%), Turkey (5%), Syria (4%), Morocco (3%) and Portugal (1%) within the recent series 2005 figures. These countries, from Spain to Portugal at the top, produces 90% of world supply in 2005. All other countries produced less than 1% of world production. Much of this is that the olives are from the Mediterranean and grow best there. It is not just a question of the plant to survive, but it produces high quality olive oil for refining exportable.
As the figures show a handful of producers are currently in olive oil. Now the question is who will step in to do more than demand multiplies around the world? What kind of olives that will work best in what locations and who will invest the capital to do all this work?
Go where people are planting olive trees?
The olives are grown all over the world, but they work best in the Mediterranean. The space, climate and soil conducive to the growth of export-quality olive oils are on the other side of the Mediterranean Sea to the current major producers, Spain, Italy and Greece. Tunisia (8%) and Morocco (3%) are already in the seven largest producers. Now, Algeria, the second largest country in Africa is planning a planting millions of hectares of olive trees. Algeria is situated in eastern Morocco immediate on the Mediterranean Sea. Its climate is Mediterranean. The olives are grown for food and oil already in Algeria, but the infrastructure has not been present on a scale large enough to refine the oil fast enough to produce enough oil to as the export. An important factor here is to have adequate treatment facilities dedicated to a set of orchards and infrastructure needed to take and process timely. Another factor was that relations with foreign countries for export, marketing and sales.
It turns out that people will plant one million hectares of olive trees in Algeria. That, for those of the United States, 2.5 million acres. If planted in a single block, it would be 100 km or 62.5 miles on one side. Foreign investors bring their expertise and capital to this project. In addition foreign companies are setting up projects to attract foreign capital needed for planting orchards, maintain orchards, picking olives, olive oil process, and send oil processed through a supply chain supermarkets as far away as North America, India and Japan.
The supply chain of olive oil is as follows:
Producer-Farmer
Oil mill or cooperation
Petroleum refining
Export
Wholesaler
Distributor
Consumer
What is foreign expertise to bring the composition will be expertise in choosing olive varieties, the construction of a sufficient number of oil mills and modern connections to the export and distribution.
An example of a promising project in Algeria is one by a Spanish company. This company has a subsidiary in Algeria. With the subsidiary company will plant 1,500 hectares of olive Arbequinia. It is a variety suitable for intensive cultivation. It is strong resistance to drought and cold. The small tree yields 20% weight per volume of oil from its small olive-brown and is well known for the excellent taste of its oil.
The company will build a modern processing plant for refining oil invites high-quality international markets. It will develop the supply chain to move the processing of olives, oil exports, and exports to major markets worldwide.
Since projects like this take over the world demand for high quality oil will be met. As private companies to attract investors to this kind of profitable business they will attract the necessary capital, which has often been lacking in order to develop a supply chain and increase profits.
Using the example above the Spanish company is giving 500 of its 1,500 hectares for private investors. Investors will receive interest on investment and a "piece of the action." After three years, when the olives begin to produce Arbequinia investors will receive U.S. $ 2 a liter of oil produced on "their" acres of land. Arbequinia variety typically produces 11,000 kg of olives per hectare. The olive oil yield generally 19%. Thus, one hectare of olive trees arbequinia produce 11,000 times 0.19 equals 2,090 liters of olive oil. At $ 2 per liter is more than $ 4,000 to the investor on the top of the annual interest. This arrangement will last for ten years during which the investor will receive its initial investment back, after doubling his money. At the end of the investor contributes to increase the production of olive oil, making money, and can even find a bottle of "their" olive oil at the supermarket.
Olives and making oil
People have been making olive oil as long as 5000 years according to archaeological evidence in Greece. Today, the olives are grown and processed into oil in Spain, Italy and Greece are major producers at 36%, 25% and 18% of production in the world according to recent figures. As demand for more and more olive oil climbs these countries will probably not be able to answer the call. Greece, for example, spends 60% of its arable land to olive groves already.
After the three major producers of olive oil, come Tunisia (8%), Turkey (5%), Syria (4%), Morocco (3%) and Portugal (1%) within the recent series 2005 figures. These countries, from Spain to Portugal at the top, produces 90% of world supply in 2005. All other countries produced less than 1% of world production. Much of this is that the olives are from the Mediterranean and grow best there. It is not just a question of the plant to survive, but it produces high quality olive oil for refining exportable.
As the figures show a handful of producers are currently in olive oil. Now the question is who will step in to do more than demand multiplies around the world? What kind of olives that will work best in what locations and who will invest the capital to do all this work?
Go where people are planting olive trees?
The olives are grown all over the world, but they work best in the Mediterranean. The space, climate and soil conducive to the growth of export-quality olive oils are on the other side of the Mediterranean Sea to the current major producers, Spain, Italy and Greece. Tunisia (8%) and Morocco (3%) are already in the seven largest producers. Now, Algeria, the second largest country in Africa is planning a planting millions of hectares of olive trees. Algeria is situated in eastern Morocco immediate on the Mediterranean Sea. Its climate is Mediterranean. The olives are grown for food and oil already in Algeria, but the infrastructure has not been present on a scale large enough to refine the oil fast enough to produce enough oil to as the export. An important factor here is to have adequate treatment facilities dedicated to a set of orchards and infrastructure needed to take and process timely. Another factor was that relations with foreign countries for export, marketing and sales.
It turns out that people will plant one million hectares of olive trees in Algeria. That, for those of the United States, 2.5 million acres. If planted in a single block, it would be 100 km or 62.5 miles on one side. Foreign investors bring their expertise and capital to this project. In addition foreign companies are setting up projects to attract foreign capital needed for planting orchards, maintain orchards, picking olives, olive oil process, and send oil processed through a supply chain supermarkets as far away as North America, India and Japan.
The supply chain of olive oil is as follows:
Producer-Farmer
Oil mill or cooperation
Petroleum refining
Export
Wholesaler
Distributor
Consumer
What is foreign expertise to bring the composition will be expertise in choosing olive varieties, the construction of a sufficient number of oil mills and modern connections to the export and distribution.
An example of a promising project in Algeria is one by a Spanish company. This company has a subsidiary in Algeria. With the subsidiary company will plant 1,500 hectares of olive Arbequinia. It is a variety suitable for intensive cultivation. It is strong resistance to drought and cold. The small tree yields 20% weight per volume of oil from its small olive-brown and is well known for the excellent taste of its oil.
The company will build a modern processing plant for refining oil invites high-quality international markets. It will develop the supply chain to move the processing of olives, oil exports, and exports to major markets worldwide.
Since projects like this take over the world demand for high quality oil will be met. As private companies to attract investors to this kind of profitable business they will attract the necessary capital, which has often been lacking in order to develop a supply chain and increase profits.
Using the example above the Spanish company is giving 500 of its 1,500 hectares for private investors. Investors will receive interest on investment and a "piece of the action." After three years, when the olives begin to produce Arbequinia investors will receive U.S. $ 2 a liter of oil produced on "their" acres of land. Arbequinia variety typically produces 11,000 kg of olives per hectare. The olive oil yield generally 19%. Thus, one hectare of olive trees arbequinia produce 11,000 times 0.19 equals 2,090 liters of olive oil. At $ 2 per liter is more than $ 4,000 to the investor on the top of the annual interest. This arrangement will last for ten years during which the investor will receive its initial investment back, after doubling his money. At the end of the investor contributes to increase the production of olive oil, making money, and can even find a bottle of "their" olive oil at the supermarket.
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