Olive Oil Industry Sector Study
29 November 2010
Read by 2907 persons
The global olive oil industry is mainly concentrated in the Mediterranean basin, giving countries in this region a monopoly on olive oil and table olive exports. International consumption of these products is also growing, with consumer demand increasingly focused on labeled, organic products.
Covering 50% of Morocco's total tree-covered area, the olive tree is the leading fruit species, placing olive growing at the forefront of the strategic sectors that the government intends to promote.
However, there is a clear delay in the development of the sector, mainly due to the rise of Spanish, Italian, and Tunisian competitors. While government efforts have ensured some growth in cultivated area and olive oil production, they have not been able to guarantee adequate supply to industrial companies.
Indeed, sector operators are struggling with difficulty accessing regular, quality raw materials at a competitive price. The informal sector (traditional mills, direct sales outside formal channels, etc.) is often blamed.
In addition, low domestic consumption, shortcomings in packaging, product enhancement (dominance of bulk sales), and the poor quality of olive oils are major obstacles to the development and improvement of the sector.
However, almost unlimited potential markets are available to the sector with the expansion of new markets (China, USA, Canada, Brazil, and Japan), which implies strengthening development resources.
Faced with this situation, the Green Morocco Plan introduces incentives to stimulate the sector. Industrial companies are undertaking innovation and modernization actions in their crushing units1, designed to improve the quality of olive oil produced and the productivity of the facilities.
Financially, the sector saw an increase in its productivity indicators (+49.1%) and profitability (+68.4%) between 2006 and 2008.
Therefore, operators wishing to boost their sales on the domestic market and position themselves internationally are focusing on improving their competitiveness, mainly in terms of management and supply chain optimization, sensory quality, product and packaging promotion and differentiation.
To access the electronic version of the study, register for free on the ODE website, ode.ma
Posted on November 29, 2010
ode.ma
Covering 50% of Morocco's total tree-covered area, the olive tree is the leading fruit species, placing olive growing at the forefront of the strategic sectors that the government intends to promote.
However, there is a clear delay in the development of the sector, mainly due to the rise of Spanish, Italian, and Tunisian competitors. While government efforts have ensured some growth in cultivated area and olive oil production, they have not been able to guarantee adequate supply to industrial companies.
Indeed, sector operators are struggling with difficulty accessing regular, quality raw materials at a competitive price. The informal sector (traditional mills, direct sales outside formal channels, etc.) is often blamed.
In addition, low domestic consumption, shortcomings in packaging, product enhancement (dominance of bulk sales), and the poor quality of olive oils are major obstacles to the development and improvement of the sector.
However, almost unlimited potential markets are available to the sector with the expansion of new markets (China, USA, Canada, Brazil, and Japan), which implies strengthening development resources.
Faced with this situation, the Green Morocco Plan introduces incentives to stimulate the sector. Industrial companies are undertaking innovation and modernization actions in their crushing units1, designed to improve the quality of olive oil produced and the productivity of the facilities.
Financially, the sector saw an increase in its productivity indicators (+49.1%) and profitability (+68.4%) between 2006 and 2008.
Therefore, operators wishing to boost their sales on the domestic market and position themselves internationally are focusing on improving their competitiveness, mainly in terms of management and supply chain optimization, sensory quality, product and packaging promotion and differentiation.
To access the electronic version of the study, register for free on the ODE website, ode.ma
Posted on November 29, 2010
ode.ma
