OLIVE OIL INDUSTRY IN LEBANON
CONTENT 1 SECTOR OVERVIEW 2 TRADE STATISTICS 3 INVESTMENTS IN THE SECTOR IDAL | 2014
SECTOR OVERVIEW
SECTOR OVERVIEW 1 Main Geographical Features Olive oil is amongst the most prominent Lebanese signature agro-industrial products, and a proud part of the country’s history and culinary tradition. Lebanon's diverse topography, fertile soil, microclimates, and olive varieties allow farmers to produce uniquely flavored products. Lebanese olive trees are on average 150 years old and are mostly rain fed. This represents Or 563 km 2 5.4% 8% is occupied by olive trees. of the Lebanese territory. of total agricultural lands in Lebanon. IDAL | 2014
SECTOR OVERVIEW 2 Olive groves are grown in six major regions Extending from North to South: Batroun, Koura, More specifically, around 41% of olive oil production Zgharta, Akkar, Rashaya El Foukhar, and Hasbaya, in takes place in the North of which 18% in Akkar, followed addition to several other subordinate areas. Each by Nabatiyeh where 21% of the production is located, region offers its produce a special taste, native to the 15% in the South, 13% in the Bekaa with more than 9% specifics of its land. in the caza of Sour, and 10% in the Mount Lebanon. Mapping of Olive Groves in Lebanon Distribution of Olive Oil Trees in Lebanon by harvested area | 2010 Mount Lebanon 10% Bekaa 13% North 41% South 15% Nabatieh 21% Olive Groves Source: Ministry of Agriculture Source: Ministry of Agriculture IDAL | 2014
SECTOR OVERVIEW 3 Olive Oil Production Around 70% of the olive trees are destined to the production of olive oil, and the remaining ones are destined to the production of table olives. The oil productivity of the olives in Lebanon ranges from 18-25%. Olive & Olive Oil Production in Lebanon Net Weight Tons | 2007-2011 Product 2007 2008 2009 2010 2011 Olives 76,200 83,000 86,700 81,000 90,307 Olive Oil 7,500 11,000 11,000 10,000 11,300 Virgin Olive Oil* 5,250 7,700 7,700 7,000 7,910 Extra Virgin Olive Oil* 2,250 3,300 3,300 3,000 3,390 Source: FAO * Around 30% of total production consisted of extra virgin olive oil, the most refined type of olive oil IDAL | 2014
SECTOR OVERVIEW 4 Olive Oil Mills Lebanon has about 544 registered oil mills distributed throughout its regions as follows: Existing Mills by Region | 2010 274 139 110 there are some 170,000 21 olive farmers and growers in Lebanon. North South Mount Bekaa Lebanon Source: Ministry of Environment IDAL | 2014
TRADE STATISTICS
TRADE STATISTICS 1 EXPORT PERFORMANCE Exports of olive oil have been on an upward trend over the last four of years, growing at a CAGR of 14%, and reaching 4,162 tons in 2012, more than a third of domestic production. Equally noticeable was the predominance of extra virgin olive oil amongst total exports. Lebanese Olive Oil Exports Net Weight Tons | 2009-2012 Lebanese Olive Oil Export Partners | 2012 Other 21.6% United States 22% Australia 4.5% Qatar 5.9% Saudi Arabia Canada 20.1% 7.3% Kuwait UAE 8% 10.5% Source: Lebanese Customs Source: Lebanese Customs IDAL | 2014
TRADE STATISTICS 2 Imports Trends Syria, is Lebanon’s leading importer with 1,594 tons of imported olive oil. The average selling price of the 500 ml bottle of extra virgin oil in the Lebanese market is USD 4.5, while the 750 ml is sold for USD 6.5. Evolution of Olive Oil Imports Tons | 2009 - 2012 Main Olive Oil Partners % share | 2012 3,159 Lebanon-returned Goods Italy 0.6% 0.1% 2,626 Jordan 2,374 2.4% 2,213 Tunisia 24.8% Syrian Arab Republic 72% 2009 2010 2011 2012 Source: Lebanese Customs Source: Lebanese Customs IDAL | 2014
INVESTMENTS IN THE SECTOR
INVESTMENTS IN THE SECTOR 1 Investment Trends Investment Opportunities 1 • Demand far exceeds supply in the country, and 1 • A number of local producers have sought to specialize Lebanese consumers are sometimes forced to rely on specifically in the production of extra virgin olive oil, which has a growing export potential. imported products. This leaves room for various investment opportunities. 2 • Lebanese producers are working on strengthening the 2 • Production of extra virgin olive oil, flavored or not, and packaging and labeling of their bottles, perfecting the organic olive oil, both hold favorable prospects. quality of their oil through rigorous testing, and diversifying the flavors of their products. 3 • Skilled labor, devoted research (eight agricultural 3 • Organic olive oil is becoming more popular, with some colleges and various laboratories for testing across 300 ha of land currently dedicated to this field. Lebanon), and a number of public and private support initiatives, also make investments in olive oil highly attractive. IDAL | 2014
CONTACT Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh, Beirut, Lebanon US P.O.Box: 113-7251 www.investinlebanon.gov.lb INVESTMENT DEVELOPMENT T + 961 (1) 983306/7/8 AUTHORITY OF LEBANON F + 961 (1) 983302/3 invest@idal.com.lb export@idal.com.lb @Invest_Lebanon in /investmentdevelopmentauthorityoflebanon You /InvestInLebanon Tube /InvestInLebanon
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