Netherlands launches public-private partnership programme to improve Jordan’s olive exports

AMMAN — The Netherlands Ministry of Foreign Affairs (CBI) have initiated a public-private partnership programme to improve the export of Jordanian olive oil to international markets, according to Renee van Woerden, CBI Jordan Olive Oil Programme Manager.

Woerden indicated that the project, started in October 2020 and to run until August 2024, focuses on helping small olive oil businesses become export-ready and gain a strong foothold in the European market.

“Jordan’s olive oil sector is a high-quality and sustainable value chain and it is highly important for the national economy,” Woerden told The Jordan Times. 

Woerden added that their aim is to create a “cooperative  and enabling environment to increase competitiveness and quality standard enhancement of the sector”. 

The project has three main pillars: Firstly, focusing on small- and medium-sized enterprises (SMEs) and improving their sustainability and competitiveness to export extra virgin and ultra-premium olive oil into Europe; secondly, the improved and sustainable service delivery and marketing plans for the olive oil sector; and thirdly, improved sector coordination, alignment and positioning, according to Woerden.

The project will help stimulate olive oil trade and production, while working on strengthening the sustainability of 12 Jordanian olive oil SMEs and encouraging exports of value-added olive oil to Europe and to the local region.

Today, only one Jordanian olive oil SME is exporting to the EU. Some export to the regional market, but all of them are locally focused, she noted.

Woerden indicated that the project also focuses on corporate social responsibility.

The project is carried out in collaboration with key industry experts, sector companies and associations and stakeholders, such as the Ministry of Agriculture, Syndicate, NARC, the JOPEA, the CBI, and other international partners such as Mercy Corps, FAO, and the Netherlands embassy, Woerden said.

Woerden highlighted the importance of the olive oil sector in Jordan, noting that the goal of the project is to turn Jordan’s olive oil sector into “a business-oriented, high-quality and sustainable value chain with an attractive sector brand”.

“We are working hand-in-hand with the sector to develop and promote a sector brand in international markets and to further strengthen the industry through supporting organisations and improving quality,” she added.

She also noted that there are planned study visits to Europe for the SME’s and sector stakeholders to take part in leading fairs and competitions for further exploration and awareness.

Jop Blom, sector branding and sustainability expert at CBI, indicated that CBI aims to “support trade instead of aid”, by providing tools and investments in expertise to build the sustainability, quality and capacity of the entire sector for it to be able to grow and prosper.

He told The Jordan Times that the CBI has initiated other programmes to support Jordan’s economy in different sectors as well, such as in sustainable tourism.

According to Blom, the project faces various challenges, mainly the wastewater created when milling olives, which is an issue as the dumping place of the waste water is “full” and there needs to be a solution.

The high production costs, the lack of exports as most production is consumed locally, the lack of feasibility of the Jordanian olive oil sector, as well as lack of data and market intelligence, Blom noted, are also challenges. 

“We are working on creating awareness of the olive oil sector and its high quality in Jordan in order to develop its brand in the international market as people do not know about it. We also need to improve coordination between the public and private sector,” Blom said.

Blom indicated that Jordan will be the chair of this year’s International Olive Council (IOC) in June, which will lead to numerous events, activities, international exposure and export promotion and further sector development opportunities. 

“This will be a very important stepping stone to position Jordan in the international markets as one of the top producers of olive oil which will help the sector develop,” he said.

According to a statement from the CBI, olive trees cover 72 per cent of agricultural land in Jordan and create job opportunities for over 80,000 families, and the sector’s investment volume was over 1.5 billion euros in 2021 alone.

As among the top 10 olive oil producers in the world, Jordan’s production of olives for the last five years was around 150 million tonnes, 20 per cent of which was pickled and 80 per cent was sent to olive oil mills. There are over 130 olive oil extraction plants in Jordan, including 281 production lines, over 140 olive presses, including 137 licensed presses, and new mills under establishment in 2022, the statement said.