OLIVE OIL INDUSTRY IN LEBANON

CONTENT

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SECTOR OVERVIEW

TRADE STATISTICS

INVESTMENTS IN THE SECTOR

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SECTOR OVERVIEW

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 �avored products.

SECTOR OVERVIEW

Lebanese olive trees are on average

and are mostly rain fed.150 years old

This represents

of the Lebanese territory.

5.4%Or

of total agricultural lands in Lebanon.

8%is occupied by olive trees.

563km2

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Olive groves are grown in six major regions

Extending from North to South: Batroun, Koura, Zgharta, Akkar, Rashaya El Foukhar, and Hasbaya, in addition to several other subordinate areas. Each region offers its produce a special taste, native to the speci�cs of its land.

More speci�cally, around 41% of olive oil production takes place in the North of which 18% in Akkar, followed by Nabatiyeh where 21% of the production is located, 15% in the South, 13% in the Bekaa with more than 9% in the caza of Sour, and 10% in the Mount Lebanon.

SECTOR OVERVIEW

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Mapping of Olive Groves in Lebanon

Source: Ministry of Agriculture

Olive Groves

Distribution of Olive Oil Trees in Lebanonby harvested area | 2010

North41%

Nabatieh 21%

South15%

Bekaa13%

Mount Lebanon10%

Source: Ministry of Agriculture

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Olive Oil ProductionAround 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%.

SECTOR OVERVIEW

Product

Olive & Olive Oil Production in Lebanon Net Weight Tons | 2007-2011

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

2007 2008 2009 2010 2011

* Around

of total production consisted ofextra virgin olive oil, the most re�ned type of olive oil

30%

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Olive Oil Mills

Lebanon has about 544 registered oil mills distributed throughout its regions as follows:

SECTOR OVERVIEW

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Existing Mills by Region | 2010

Source: Ministry of Environment

Bekaa

21

MountLebanon

110

South

139

North

274

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there are some

170,000 olive farmers and growers in Lebanon.

TRADE STATISTICS

TRADE STATISTICS

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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

Source: Lebanese Customs

Lebanese Olive Oil Export Partners | 2012

Source: Lebanese Customs

United States22%

UAE10.5%

Canada7.3%

Kuwait 8%

Australia

4.5%

Saudi Arabia20.1%

Qatar 5.9%

Other21.6%

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TRADE STATISTICS

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Imports TrendsSyria, 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.

2012

2,213

2011

2,374

2010

3,159

2009

2,626

Evolution of Olive Oil Imports Tons | 2009 - 2012

Source: Lebanese Customs

Italy0.1%

Lebanon-returned Goods0.6%

Jordan2.4%

Tunisia24.8%

Syrian Arab Republic72%

Main Olive Oil Partners % share | 2012

Source: Lebanese Customs

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INVESTMENTS IN THE SECTOR

INVESTMENTS IN THE SECTORInvestment Trends

1• A number of local producers have sought to specialize speci�cally in the production of extra virgin olive oil, which has a growing export potential.

2• Lebanese producers are working on strengthening the packaging and labeling of their bottles, perfecting the quality of their oil through rigorous testing, and diversifying the �avors of their products.

3• Organic olive oil is becoming more popular, with some 300 ha of land currently dedicated to this �eld.

Investment Opportunities

1• Demand far exceeds supply in the country, and Lebanese consumers are sometimes forced to rely on imported products. This leaves room for various investment opportunities.

2• Production of extra virgin olive oil, �avored or not, and organic olive oil, both hold favorable prospects.

3• Skilled labor, devoted research (eight agricultural colleges and various laboratories for testing across Lebanon), and a number of public and private support initiatives, also make investments in olive oil highly attractive.

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