Olive oil pressing
Olive oil pressing
Business Model Description
Upgrade and improve extra virgin olive oil production, including utilisation of waste and emphasis on post-production value addition
Expected Impact
Address post harvest losses and increase value addition of olive produce for local consumption and export.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Jordan: Irbid
- Jordan: Balqa
- Jordan: Jerash
- Jordan: Mafraq
Sector Classification
Food and Beverage
Development need
Sustainability Development Report 2019: score of 45.4 on SDG 2 (Zero Hunger), of 92.2 on SDG 7 (Affordable and clean Energy), and of 94.8 on SDG 13 (Climate Action), with 'Challenges remaining' subscores prevalent across indicators (1).
Policy priority
In response to the challenges in the agriculture sector and food security, the government has developed the National Strategy for Agricultural Development 2020 – 2025 in addition to the National Water Strategy in line with the “Jordan 2025” (5).
Gender inequalities and marginalization issues
A small minority of women own agricultural lands in Jordan, most of which does not exceed an area of 2 hectares. Rural families headed by women tend to be among the poorest as they have fewer assets than male-headed families. (5b)
Investment opportunities introduction
The agricultural and agro-processing sector is an important contributor to the Jordanian economy. It produces 15-20% of GDP, accounts for 15.4% of total exports and is the third largest employer of about 15.3% of workforce and 52% of females in rural areas (2), (3).
Key bottlenecks introduction
The agriculture sector is one of the sectors that is vulnerable to several challenges like climate change and need to focus increasingly on water efficiency and climate change resistant plants. It consumes 456 million cubic metres of water per year (4).
Agricultural Products
Pipeline Opportunity
Olive oil pressing
Upgrade and improve extra virgin olive oil production, including utilisation of waste and emphasis on post-production value addition
Business Case
Market Size and Environment
Exports of table olives in 2016/17 reached 10,000 tons
Exports of table olives in 2016/17 reached 10,000 tons
The main export destinations are Israel accounting for 35% of total exports, followed by Saudi Arabia at 21%, the United Arab Emirates at 20%, Kuwait at 12% and the United States at 4% in 2016-2017 (8).
Indicative Return
15% - 20%
A sample olive oil filling plant generates an internal rate of return of 28.85% and provides 17 jobs for local residents (7)
Investment Timeframe
Short Term (0–5 years)
Payback period of four years, based on studied benchmark projects
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Business - Supply Chain Constraints
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Jordan's olive industry employs fragmented production using outdated growing and harvesting methods, which lead to low quality and poor productivity
The industry is characterised by insufficient knowledge of market trends, demand characteristics, and substandard commercialization
The waste products from olive oil processing have the potential to expand production with traditional upgrading and improved post-harvest techniques and transform the way waste products are used post-production (5c).
Gender & Marginalisation
The olive oil sector is easily accessible and employs primarily poor Jordanians, Syrian refugees, youth, and women. (5c)
Most of the olive fieldwork is carried out by families, who divide the work along to traditional gendered lines. Women work on the ground to gather olives on the lower branches and play an important role in the olive harvest.(1).
Expected Development Outcome
Minimize environmental impact of olive production, and processing (6)
Improve quality of products and generated revenue
Gender & Marginalisation
Increase employment in the sector, including for female workers, when using new technologies
Primary SDGs addressed
8.2.1 Annual growth rate of real GDP per employed person
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Indirectly impacted stakeholders
People
Outcome Risks
Disposal of olive pulp (jift) and olive oil waste water (traditional recycling facilities in Jordan)
Olive mills consumes large quantities of freshwater during normal production process
Impact Classification
What
Farmers and mill owners because of greater water and energy efficiency, lower operating costs, reduced waste water and green house gas emissions.
Who
Businesses and farmers who gain access to further income generation opportunities
Risk
An increase in local consumption demand has resulted in decreased export potential (9)
Impact Thesis
Address post harvest losses and increase value addition of olive produce for local consumption and export.
Enabling Environment
Policy Environment
The olive oil sector is listed as a priority in the Jordan Investment Map and Local Economic Development plans for some governorates like Irbid, Balqa, Jerash and Mafraq.
Financial Environment
Financial incentives: The transfer of revenue and profits, liquidation of the investment, taking out of all capital without capital gains tax, reduced corporate income tax in different regions, transfer of salaries and wages and ownership of up to 50% in some sectors. (7)
Fiscal incentives: Tax exemptions for renewable energy systems and equipment from customs duties and sales tax by Renewable Energy and Energy Efficiency law of 2012
Regulatory Environment
Jordan is an active member of the International Olive Council (IOC) since 2002 and has participated in the successive International Agreements on Olive Oil and Table Olives.
Marketplace Participants
Private Sector
Large scale farms and small scale farms are active in this area as well as export companies and factories.
Government
Ministry of Agriculture, Ministry of Planning and International Cooperation
Target Locations
