**8. The future of olives and olive oil in Albania**

In the last years olives and olive oil has become one of the priorities of the Albanian Government policies. Recently Albanian Government is undertaking an extremely ambitious policy for expanding the production base, targeting a fivefold increase of the total number of olive trees, i.e. up to 25 ml trees. For this purpose, most subsidies provided from 2007 to the agricultures sector from the State (scoring about 10 m Euro in 2008) are addressed to the olive cultivation and olive oil production. Focusing investments in increasing yields (production per tree), stabilizing output from one year to another and improving harvesting and pest management practices would be at present a more cost/effective option for ensuring a sustainable development of the sector. Priority actions include: i) improvement of value chain governance tools, including harmonization of laws to EC, ii) increased technical assistance to farmers to increase productivity and stabilize output; iii) support to value chain operators for facilitating access to services, iv) supporting establishment and strengthening of farmers' associations and cooperatives and; v) optimize

Olive Oil Sector in Albania and Its Perspective 507

Fig. 6. Dynamics of Olive trees under different scenarios (000 trees), (Adapted from Leonetti

Olive oil production can become a very important aspect in the Albanian agriculture economy. Due to the favourable climatic conditions the main input, olives, can be cultivated in a more intensive form, despite the fact, that the areas under olive cultivation in Albania

After a relatively long hiatus related with the democratic political changes in of early '90-s, the Albanian olive and olive oil industry is showing signs of a healthy recovery. Since the country restored political and economic stability in 1999, the olive sector has attracted notable attention from the government and private investors, giving rise to a considerable growth of the sector. The planting of new trees has increased tremendously as a result of the government's supporting programs and private initiatives. New plantings have been established with modern practices and good management. The oil processing industry has also experience significant growth. Small processing plants have become more efficient in producing high quality oil for domestic and foreign markets. Still, the sector faces important challenges to overcome such as high cost of production, dominance of low quality olive oil production, shortage of raw materials, weak contracting relationship between the growers

Adelman, I and Taylor, J. E., (1990), "Changing comparative advantage in food and

Economic Co-operation and Development, Paris, France

agriculture: lessons from Mexico", Development Centre studies} / Organisation for

compared with the areas in Greece or Italy are very insignificant.

and the processors, and deficiencies in marketing.

et al, 2009)

**9. Concluding remarks** 

**10. References** 

the use of effluents and by-product in olive oil industry, to mitigate environmental impact of olive oil production and increase profitability in olive oil processing.

The Government of Albania lunched since early 2009 the idea of supporting the plantation of 20 million olive trees, which would eventually transform Albania into a world level competitor. At present, domestic demand of olive oil scores around 12,200 Mt and that one of table olives 14,000 Mt per year (excluding self-consumption).Yearly yields and output are highly variable, as Albanian olive orchards receive poor or no services and are highly vulnerable to weather conditions. According to previous surveys and according to the evaluation of specialists, average yield of olive trees in Albania is circa 15 kg/tree.

Under these assumptions and estimations, there is a deficit of 1,500 tons of olive oil which is not very different from the recorded official imports of olive oil – circa 1,000 tons of olive oil (the current yields may be even a bit more than 15 kg/tree, i.e. if assumed 15.5 kg/tree, than we obtain a deficit corresponding exactly to the recorded imports). Improving average yield to 17 kg/tree (+13%) to the current 5,011 million of trees (thus excluding in these calculations the expected increased number of trees in the coming years) there a surplus of production will be already achieved. Considering that many trees will enter in full production in the next years, this objective seems easy to achieve. According to expert (agronomist) evaluations, under irrigation and proper treatment, it is possible to achieve average yield of 25 kg/tree (conservative assessment). At this level, suficit is of equivalent 7,550 tons.

As a conclusion, Albania can meet its demand for olives and olive oil, and even achieve surplus, by simply improving services to the current olives; moreover, even without further support for new plantings, the expansion of the production base will continue, even if at a slower pace: before the introduction of subsidies for new plantings, the average growth of the production base was of 166,000 new trees/year; in 2007-2008, after the introduction of subsidies, this amount increased to 257,000 per year.

In their study, Leonetti et al, 2009, introduced 5 different scenarios considering several investment and related implications.


The number of trees according to each scenario is reflected respectively in Figure 6. For the production, based on expert assessment, they assume that old trees (planted till 2008) have a yield of 15 kg/tree, whereas the new ones, 25 kg/tree. In the second year, the new trees achieve 3 kg/tree, third year 8 kg/trees, fourth 20kg/tree, fifth 25 kg/tree.

the use of effluents and by-product in olive oil industry, to mitigate environmental impact of

The Government of Albania lunched since early 2009 the idea of supporting the plantation of 20 million olive trees, which would eventually transform Albania into a world level competitor. At present, domestic demand of olive oil scores around 12,200 Mt and that one of table olives 14,000 Mt per year (excluding self-consumption).Yearly yields and output are highly variable, as Albanian olive orchards receive poor or no services and are highly vulnerable to weather conditions. According to previous surveys and according to the

Under these assumptions and estimations, there is a deficit of 1,500 tons of olive oil which is not very different from the recorded official imports of olive oil – circa 1,000 tons of olive oil (the current yields may be even a bit more than 15 kg/tree, i.e. if assumed 15.5 kg/tree, than we obtain a deficit corresponding exactly to the recorded imports). Improving average yield to 17 kg/tree (+13%) to the current 5,011 million of trees (thus excluding in these calculations the expected increased number of trees in the coming years) there a surplus of production will be already achieved. Considering that many trees will enter in full production in the next years, this objective seems easy to achieve. According to expert (agronomist) evaluations, under irrigation and proper treatment, it is possible to achieve average yield of 25 kg/tree (conservative assessment). At this level, suficit is of equivalent

As a conclusion, Albania can meet its demand for olives and olive oil, and even achieve surplus, by simply improving services to the current olives; moreover, even without further support for new plantings, the expansion of the production base will continue, even if at a slower pace: before the introduction of subsidies for new plantings, the average growth of the production base was of 166,000 new trees/year; in 2007-2008, after the introduction of

In their study, Leonetti et al, 2009, introduced 5 different scenarios considering several






The number of trees according to each scenario is reflected respectively in Figure 6. For the production, based on expert assessment, they assume that old trees (planted till 2008) have a yield of 15 kg/tree, whereas the new ones, 25 kg/tree. In the second year, the new trees

achieve 3 kg/tree, third year 8 kg/trees, fourth 20kg/tree, fifth 25 kg/tree.

subsidies, this amount increased to 257,000 per year.

introduction of subsidies (2007- 2008).

investment and related implications.

introduction of subsidies.

4 million trees per year.

million trees per year.

trees per year

evaluation of specialists, average yield of olive trees in Albania is circa 15 kg/tree.

olive oil production and increase profitability in olive oil processing.

7,550 tons.

Fig. 6. Dynamics of Olive trees under different scenarios (000 trees), (Adapted from Leonetti et al, 2009)
