Olive oil export promotion project

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Restitution workshop

Ramallah, February 1st, 2012

ـة ــ ــ ـؤـسســ ـمـا ــف ـواص الـم

تالفلسطينية

Palestinian Farmers Union

Olive Oil Export Promotion Project:Overview

• The Project duration is four years, funded by AFD with a budget of 1.25 million Euros.

• The Project was designed to cover all stakeholders along the production/value chain.

• Four partners were identified to implement the Project: Palestine Trade Center PalTrade Palestinian Farmers Union PFU Palestinian Food Industries Association PFIA Palestinian Standards Institute PSI

• The Project is managed by PalTrade, and a Technical Committee was established from all partners to follow up on the implementation, monitoring and evaluation of each phase of the project.

PFUFarmers / Cooperatives: 1000 farmers / 30 coop.

PFIA

PalTrade

PSI

Presses: 15 presses

Bottlers / Exporters: 8-10 companies

Certification: Jury members

International Markets

Support organizationsSupply Chain

Olive Oil Export Promotion Project:Overview

Olive oil export promotion project

Restitution workshop – February 1st, 2012

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Component 1 - PFUSupport to olive farmers and olive oil production

Objective 1: Empowerment and capacity building or farmers’ organizations

Activities Results

Mobilization and animation of collective work (PFU)

• Strengthening of cooperative model28 groups of producers (870 farmers)

24 cooperatives 16 new cooperatives

Capacity building: - Trainings and coaching on governance

and management (done by FTDC)- Production tracking software (funded by

SDC)

• 20 cooperatives (70%) have built their capacities significantly (technically and organizationally)

• Improved traceability and quality control

Animation of network of cooperatives, exchange of experience

• 2 regional federations of cooperatives (+ 1 under preparation)

• Regeneration of OOCU membership

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Objective 1: Empowerment and capacity building or farmers’ organizations

Lessons learnt

Cooperative model

• applicable to Palestinian context

• very empowering once rooted

• requires patience & consistency

• very demanding & requires active participation of members

• not adapted to all situations (explore other ways for organizing farmers)

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Progress

Time

Individual farmers

Cooperatives

Coalitions of cooperatives

Objective 2: Upgrade olive and olive oil production: QUALITY

Activities Results

Equipment(1) : - Individual: nets, rakes, boxes- Collective: tanks

Rehabilitation of warehouses (1)

• All cooperatives well equipped

• 5 warehouses rehabilitated

Trainings & distribution of leaflets• Good awareness of best practices & correct

utilization of equipment • Satisfactory implementation of collective control

of production

Observatory of olive fly • Awareness of farmers • Failure to create technical reference

(1) Funded by European Commission and Oxfam GB

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Olive harvest Olive presses Storage conditions

Follow-up of best practices for olive oil quality

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Objective 2: Upgrade olive and olive oil production: QUALITY

Lessons learnt

• Importance of strict follow-up of production process by qualified staff orchard > press > warehouse

• Negative impact of bad climatic conditions(1): - draught > small production > increase of impact of olive fly- high temperatures during harvest > acceleration of oxidation of oils(1) Climate change scenarios indicate that Mediterranean countries will get warmer and

dryer: up to +3°C and -30% rainfall

• Importance of conditioning warehouses in Palestine

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Objective 2: Upgrade olive and olive oil production: PRODUCTIVITY

Activities Results

Equipment(1): - Individual: hand saws, pruning

shears, ladders- Collective: chain saws, sprayers

• All cooperatives well equipped

Participatory demonstration orchards

• On-site validation of best practices adapted to agro-climatic conditions in West Bank leading to regeneration of olive orchards

Trainings & distribution of leaflets• Good awareness of best practices & correct

utilization of equipment• Medium level of implementation of best practices

(75% of cooperatives, 30% of farmers)

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(1) Funded by Swiss Agency for Development and Cooperation

Participatory trainings in demonstration orchards

Short theoretical introduction Demonstration by international trainer

Field exercices Group discussion 11

Introduction to control of “Peacock eye disease”

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SEBASTIA (Nablus): February 2009 SEBASTIA (Nablus): November 2009

IMMATIN (Qalqilya): February 2009 IMMATIN (Qalqilya): November 2009 13

Objective 2: Upgrade olive and olive oil production: PRODUCTIVITY

Lessons learnt

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• Sensibility of Palestinian rainfed orchard to climatic conditions (for instance impact of draught during spring and summer 2009/2010)

• Importance of productive pruning and plant protection might not be enough & necessity to explore other ways: - Resistant olive varieties (to water shortage and to draught)- Supplementary irrigation (with zoning of irrigable areas)

Objective 3: Set-up Market Information and Services Unit

Activities Results

Workshops and trainings of farmers on value chain approach and basics of business development

• Very limited improvement of awareness

Facilitation of business linkages • No new sustainable linkages

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Lessons learnt

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Objective 3: Set-up Market Information and Services Unit

SERVICE CENTERTraining of olive farmers on downstream

+Platform gathering information from the production and the market

+Facilitation of business meetings in between cooperatives and local trading companies

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BUSINESS CENTERBusiness exploration

+Negotiations on behalf of the producers.

Confusion about MISU concept:

Lessons learnt

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Objective 3: Set-up Market Information and Services Unit

• Necessity to develop capacities of farmers supporting organizations in business development

• MISU came too early in the process of capacity building of farmers’ organizations Farmers not ready, not interested to take actions, not willing to take responsibilities

• More efficient at this stage of development to have a trading partner

Conclusion:Recommendations and perspectives

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• Reshape funding mechanisms- Reconsider the subvention with focus on new cooperatives and diffusion of innovative

technologies and practices- Enhance and facilitate access to credit for organizations of producers- Encourage productive investment of private sector

• Encourage the professionalization of cooperatives- Develop permanent activities and staff - Explore the diversification of profitable activities

• Encourage regional coalitions of cooperatives and create clusters - Integrate value chain and its enabling environment

• Reorganize production of technical references and extension services- Set-up regional specialized centers and programs of applied research- Deliver of coherent information to producers- Develop a local network of skilled operators (cooperatives or private companies)- Fund the system by selling services, by redistributing part of the added value created in the

sector (professional taxes)

THANKS TO ALL

Restitution workshop – February 1st, 2012

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Component 2 - PFIAQuality certification and food safety of olive presses

Olive oil export promotion project

Objective 1: HACCP certification for the olive presses

Activities Results

GAP analysis Full gap analysis audit conducted for 20 olive presses against the HACCP and GMP requirements

Selection of 10 olive presses

System development HACCP system for olive presses developed

28 persons trained on the application of HACCP system

HACCP certification HACCP system developed by PFIA certified by accreditation body

3 olive presses (out of 6) certified HACCP for their implementation of the system

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Rehabilitation of olive press according to food safety and hygiene requirements

Objective 1: HACCP certification for the olive presses

Lessons learnt

HACCP certification will not be sustainably applied until it becomes fully legally supported

HACCP certification should be supported by more accurate inspections of olive presses from authorities for the delivery of yearly operation certificate

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Objective 2: Training on quality control

Activities Results

Training of olive presses 28 olive presses trained on best hygienic practices and quality control

Manuals 3 manuals edited - Good hygienic practices for olive press - Olive oil quality - Olive paste processing

Financial and administrative systems development

Systems implemented in 3 women cooperatives.

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Objective 2: Training on quality control

Lessons learnt

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Olive press owners should pay more attention to continuous training of their staff

Trainings should be more tailored to the level of education of press owners and workers Need for training in practical and theoretical maintenance and GMP

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• Create legal incentives to encourage implementation of food safety regulations all along supply chain

• No further subsidies should be dedicated to rehabilitation of olive presses

• Conduct awareness campaign on the importance of best hygienic practices in olive oil production

Conclusion:Recommendations and perspectives

Restitution workshop – February 1st, 2012

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Component 3 - PSIQuality control and national regulations

Olive oil export promotion project

Objective 1: Development of national tasting laboratory and panel test

Activities Results

Equip PSI tasting lab• Laboratory installed and equipped according to

IOC requirements• Training purposes and official tasting

Train panel test (National Olive Oil Jury) • 3 panel test created and accredited or in

process of accreditation • Initiation of international and regional

cooperation (IOC, JISM)

Awareness program about olive oil quality and sensory evaluation

• Enhanced awareness of consumers, stakeholders (farmers, press owners, traders, NGOs, institutions)

• Creation of National olive oil competition (Golden olive oil competition)

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Objective 1: Development of national tasting laboratory and panel test

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Olive oil tasting sessions and PSI new tasting laboratory

Objective 1: Development of national tasting laboratory and panel test

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Lessons learnt

Systematic sensory evaluation should be applied in order to classify correctly Palestinian olive oil

Improvement of practices toward selection of members of panel test and follow-up:• Selection of members of panel test according to their skills and commitment (IOC

standards)• Evaluation of potential members before investing on them • Being a taster is a continuous process of learning

Necessity of activating membership of Palestine in IOC in order to benefit from full and regular support to panel test

Objective 2:Implementation of Olive Oil Quality Chart

Activities Results

Quality chart official recognition & awareness

Enhanced cooperation with:- Relevant institutions - Subsector stakeholders- Universities and others

Quality Chart Implementation Certification of oil and producers

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Lessons learnt

Collaboration with organizations remains too dependent of personal relationships

More awareness needed about the benefits of Quality Chart

Producers need to be supported and followed up in order to implement Quality Chart

Objective 2:Implementation of Olive Oil Quality Chart

Objective 3:Study of Geographical Indication potential

Activities Results

Study tours (France, Jordan) Better understanding of GI concept, opportunity and difficulty

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Lessons learnt

Legal framework not readyFurther awareness and understanding of GI needed

Conclusion:Recommendations and perspectives

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Quality chart and GI

Quality chart will be sustained only if producers cover the cost of inspection and testing (chemical and sensory)

Develop legal framework by supporting MNE process of review of regulations according to WTO requirements

Need to further assess GI and/or collective mark

Increase awareness of Quality Chart and GI among stakeholders

Make the chemical and sensory evaluation compulsory for export

Panel test

Complete national recognition and seek IOC accreditation

Get official accreditation of tasting lab according to ISO17025

Sustain continuous trainings (in Palestine and abroad) of the 3 juries and identify more members

Restitution workshop – February 1st, 2012

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Component 4 - PALTRADEPromotion and marketing

Olive oil export promotion project

Objective 1:Market information

Activities Results

Exploratory missions & Market scanning(Malaysia and France)

- Market and segmentation and trends - List of main importers- Prices and quantities- Import regulations and procedures- Customs, shipping and logistics

In-house market mapping (ITC and IOC data base)

- Geographical analysis of olive oil markets and dynamics

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Objective 1:Market information

Lessons learnt

Considering the Palestinian olive oil market profile market intelligence process may be more practical, quicker, less costly :

• Market segmentation• Potential clients identification• Exploratory mission

• Product testing• B2B meetings• Trial shipment

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Key for success

• Identify niche markets (premium quality, geographical origin, organic, fair trade)• Personal involvement• Close follow-up

PALTRADE

PALTRADE + COMPANIES

Objective 2:Support to promotion and marketing

Activities Results

Participation to exhibitions (Malaysia, Jordan, UAE)

Opening of new market: MalaysiaAwareness on markets and competitorsHighlight on Palestinian products (awards)

Support to companies in promotional & marketing material and activities

Better positioningIncrease of saleIntroduce new products

Organization of olive oil festivals Visibility for small producers (women coops.)

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Palestinian stand at Hallal exhibition Kuala Lumpur, Malaysia, 2009

Women cooperative at olive oil festival Salfeet, 2011

Objective 2:Support to promotion and marketing

Success stories Technochemical Company

Entering new markets:• Value of Techno chemical sales/ Exports to the Malaysian

market in the year 2011 was more than 120,000 USD (85% Olive Oil)

• In 2012, Techno chemical expects that sales will reach 200,000 USD (+50%) based on the current orders which already started.

“AFD project activities helped our company not only to enter the Malaysian market but also to grow fast in that market”

Dr. Osama Odeh, owner

Success stories New Farm Company

• Introduction of new products:“Support from AFD project enabled New farm company to introduce two new

products to the local market (olive Paste and Ataype). Surprisingly, the highest sales -apart from the olive oil- were the those two new products, this was accomplished through the tasting events, media coverage, promotion materials and small gifts, all around the West Bank cities.”

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• Results of tasting events(increase of sales in local market):

Lessons learnt “Palestinian olive oil, simply tastes different”

•Challenges:•Productivity•High cost of production•Fluctuation in production & prices•Inconsistent quality

•Market positioning:•Virgin (large quant.) traditional farming traditional markets (local & GCC)•Extra virgin (small quant.) skilled farmers & coops. Supermarkets, fair trade, ethnic markets•Premium extra virgin coops. Gourmet, specialty, high end markets

•Branding: •Need for joint & collective efforts @ National level•Need for international promotional campaigns •Gourmet shops, Olivier & Co., best reference

•Packaging: There is a lack in local skills in design in terms of packaging especially for export companies.

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Objective 2:Support to promotion and marketing

Objective 3:Technical Assistance

Activities Results

Scientific study on characterization of the main Palestinian olive cultivars and olive oil(lead by GVC, in cooperation with UAWC and NARC, funded by AFD and EC

Publication of study (by UAWC) Genetic fingerprinting was not finalized

Olive oil national strategy (lead by MoA, in collaboration with POOC, Paltrade and PFU, funded by AFD and SDC)

Strategy under revision by MoA for approval and endorsement

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Conclusion

Practical cooperation in between stakeholders (and in between donors) is possible, efficient and productive

Conclusion:Recommendations and perspectives

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At business level

• More focus on potential markets & market segments through market intelligence

• More efforts on branding

• More attention on packaging and design

• Move from event based activities to market entry programs

• Tailor support to companies according to their profiles and potential markets

• Create an association of olive oil exporters

• More integration among stakeholders along the value chain

Conclusion:Recommendations and perspectives

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Final

More systematic and institutionalized cooperation among stakeholders