Italy, the world’s second largest olive oil producer, has to go shopping for its green gold in Syria, because it cannot keep up with its own demand. The average Italian consumes around 47 cups a year, in comparison with countries like the UK, Germany and the US, where less than one is the norm.
In 2006, Syria produced 205,000 tons of olive oil, much of it of premium grade, which is most in demand on the international market. Syria’s domestic consumption of olive oil accounts for only about 50% of its total production, leaving at least 100,000 tons for export. It stands to reason then that Italy, which also imports the oil for redistribution and marketing to other countries, would be a returning customer with a vested interest in its supplier’s efficient operations.
Evidence of olive cultivation in Syria dates back 5,500 years, extending to all parts of the Mediterranean, where it has become an indispensable item of local cuisines and health food sectors. However, the industry is rife with difficulty.
Despite its status as the sixth largest olive oil producer in the world, Syria is facing backlogs that keep it from moving fast enough into new export markets like China, whose olive oil imports are rising dramatically. Naturally, Syria is keen to break into this emerging market, having already begun exports to other Asian nations. However, with many of its local growers cultivating only small plots of land with old-fashioned methods and much of the oil-processing facilities needing to be upgraded, the plan needs a bit of a boost.
Enter Italy, with its gracious $2.7 million assistance to develop Syria’s history-rich but bottlenecked olive oil production. The cooperation project will be based in Idlib, the nexus of Syria’s olive growing region and provide know-how in addition to funding. The industry will also receive assistance from the International Centre for Agricultural Research in the Dry Areas, supported by funding from the Spanish National Agricultural Research Institute.
But Syrian exporters are not content to rest on their laurels waiting for foreign investment, they have been making appearances at numerous international trade fairs, to promote their product and discuss sector development. These fairs include the 2007 Seoul Food Fair, the Montreal SIAL food fair, and on their own turf in Damascus, Olivex 2007.
Even before the Syrian government started its program of reforms to draw foreign investment, the olive sector had been taking matters into its own hands, forming partnerships with overseas producers and distributors like the East Mediterranean Olive Oil Company, a joint venture between Aceites del Sur of Spain and others.
Another difficulty has been developing tough-to-crack markets in regions like North America where olive oil consumption is nadir, exports expensive and political relations strained. To get around the issue, some Syrian wholesalers allow their clients to package and re-export products under their own labels, opening up markets such as the US that may otherwise be closed to direct sales of Syrian olive oil.
The United Nations Development Program for its part has taken an interest in the olive oil sector from an environmental perspective. The UNDP is addressing the issue in a three-year, Levant-wide program, in partnership with local environment ministries. The project is intended to provide “green” standards, build institutional monitoring and develop financial incentives.
