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Kingdom's Olive Oil Producers 'Struggling to Compete' With 'Low-Quality Mixed' Imports
Sunday, July 05, 2009 11:55 AM


(Source: The Jordan Times)trackingBy Thameen Kheetan, Jordan Times, Amman

Jul. 5--AMMAN -- The influx of "mixed" olive oil into the Kingdom is harming Jordan's olive oil industry and affecting the quality of the product on the local market, olive oil producers said on Saturday.

Olive oil coming from neighbouring countries, particularly Syria, is often mixed with olive byproducts generated in the pressing process and sold at prices lower than local virgin olive oil, claimed Innad Al Fayez, head of the olive press owners and producers association.

The government last year lifted a ban on the import of olives and olive oil, attributing the decision to what it called a "lack of commitment" from Jordanian oil producers to a previous pledge not to raise prices.

The decision has led to an increase in mixed olive oil on the local market, hurting the competitiveness of Jordanian producers, according to Fayez.

"A total of 1,000 to 2,000 16-litre oil containers are smuggled daily from Syria," Fayez told The Jordan Times yesterday, at the end of a two-day exhibition of olive products in Amman organised by the Jordan Olive Products Exporters Asociation (JOPEA).

He explained that 10 to 15 per cent of Syrian olive oil consists of olive oil byproducts, known in Arabic as "jift".

"This has affected Jordanian olive farmers as well as the reputation of our olive oil abroad," Fayez remarked, adding that his farm produces around 7,000-8,000 virgin olive oil containers each year.

The Agriculture Ministry defended the measure, pointing out that strict regulations prevent non-virgin olive oil from entering the Kingdom.

"When the ministry allowed the import of olive oil, it imposed certain criteria, which stipulates that the olive oil must be virgin," ministry assistant secretary general for agricultural resources, Adnan Abdul Noor, told The Jordan Times yesterday. He noted that the ministry has not received complaints regarding olive oil quality.

Ministry officials will discuss the dispute with olive producers in a meeting ahead of this year's olive harvest season, according to Abdul Noor.

Olive production peaks every other year in a phenomenon known as "alternate bearing habit". Last year, the Kingdom's olive oil production amounted to 18,000 tonnes, while the annual average stands at 30,000 tonnes, according to JOPEA estimates.

Olive oil prices rose last year due to an increase in production costs, which caused the Kingdom's annual olive exports to dip below the average level of JD20 million, JOPEA Director Mousa Saket told The Jordan Times.

There are currently some 107 olive presses in the country, with the capacity of producing 273 tonnes per hour.

Jordanians consume around 18,000 tonnes of oil each year on average, while the country exports around 7,000 tonnes annually, according to the association.

Arab Gulf countries represent the largest market for Jordanian olive oil, Saket said, noting that there is a growing demand for the product in Indonesia, Malaysia, the US and Europe.

The exhibition, titled, "Zait Wa Zaitoun", (oil and olives), showcased Jordanian olive products and the health benefits of olive oil.

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Copyright (c) 2009, Jordan Times, Amman

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