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The olive sector is gaining increasing attention as a promising agricultural domain capable of driving national economic diversification and reducing reliance on hydrocarbons, buoyed by growing global demand for high-quality olive oil and Mediterranean products. However, despite Algeria's immense natural potential, encompassing vast agricultural areas and a large number of olive trees, this wealth remains underexploited, failing to realize its full potential as a true driver of sustainable growth and development.
This conclusion emerged from a recent scientific study titled "Olive Cultivation in Algeria in the Face of Economic, Social, and Environmental Challenges," published in "Studies Journal Economic Isso" and prepared by researchers Sarah Zargini, Nabil Qandi, and Wari Muradi. The study affirmed that the olive sector is not merely a traditional agricultural activity but a strategic industry capable of effectively contributing to wealth creation, job provision, enhancing food security, and preserving natural resources, provided it receives structural reforms and qualitative investments. The study noted that many Mediterranean countries have prioritized olive cultivation in their agricultural and developmental policies, given its adaptability to climate change, its role in soil protection and combating desertification, in addition to its high economic value in international markets.
The study reveals that Algeria possesses a significant olive production base, with groves covering over 400,000 hectares and hosting approximately 61 million olive trees distributed across various regions, particularly in the Kabylie area, the High Plateaus, and some western and southern governorates, which have witnessed remarkable expansion thanks to government support programs in recent years. Despite the contribution of afforestation and agricultural expansion projects to gradually increasing planted areas over the past two decades, this quantitative growth has not been matched by similar progress in productivity or yield per hectare, which remains below the averages recorded in many competing Mediterranean countries. Researchers attribute this disparity to several factors, including the widespread reliance on traditional farming methods, weak mechanization, lack of modern irrigation networks, insufficient technical support, and deficiencies in processing and marketing operations. Furthermore, the familial and seasonal nature of most olive farms limits their ability to provide permanent employment opportunities and enhance the sector's added value.
The researchers utilized an econometric model, ARDL (Autoregressive Distributed Lag), to study the sector's evolution during the period from 2000 to 2022, linking olive production with a set of economic, social, and environmental indicators. The results showed a positive long-term relationship between the growth of olive production and the improvement in the agricultural sector's added value, confirming the sector's contribution to supporting economic growth and stimulating rural economies. The study also revealed a positive correlation between olive cultivation and the rational use of water resources, considering it one of the most climate-resilient crops compared to other alternatives.
Conversely, the study pointed out that the sector's contribution to enhancing employment and improving human development indicators remains relatively modest. This is attributed to the weak food processing industry associated with olive oil and the scarcity of investments in transformative industries that could generate thousands of new jobs. The study confirms that global markets have seen a continuous rise in demand for olive oil for years, driven by increasing preference for healthy diets, growing awareness of its nutritional value, and its diverse applications in the food, cosmetic, and pharmaceutical industries. The study suggests that Algeria has a real opportunity to strongly enter international markets and boost its olive oil exports. However, this hinges on improving production quality, adopting international standards, obtaining conformity and quality certifications, and developing packaging, labeling, and marketing methods. Researchers also emphasized the importance of transitioning from exporting raw products to marketing high value-added products bearing Algerian brands capable of competing in European, Asian, and Gulf markets.
Despite the abundance of raw materials, the study indicates that the olive sector's value chain in Algeria still suffers from structural imbalances, most notably weak industrial processing capabilities and the absence of an integrated system linking production, pressing, packaging, storage, distribution, and export. The study proposes that developing modern mills, establishing contemporary packaging units, improving storage networks, and adopting health-compliant transportation methods are critical factors for enhancing the economic value of Algerian olive products. It also called for encouraging private investment in olive-related industries, including the valorization of by-products such as pressing waste (pomace), pits, and leaves, for use in bioenergy production, animal feed, or organic fertilizers, thereby supporting circular economy principles.
The study not only focused on economic analysis but also highlighted the environmental significance of the olive tree, being one of the most adaptable trees to Mediterranean and semi-arid climates. This tree contributes to reducing soil erosion, combating desertification, preserving biodiversity, and improving agricultural land fertility. However, researchers cautioned that uncontrolled expansion in intensive farming could lead to increased consumption of pesticides and chemical fertilizers and depletion of water resources. This necessitates adopting sustainable agricultural practices based on rational irrigation, optimized use of agricultural inputs, and maintaining ecological balance.
In conclusion, the study presented a set of practical recommendations aimed at developing the sector. These include restructuring and organizing the olive sector in line with a modern economic vision, modernizing agricultural farms and expanding the use of mechanization and smart technologies, improving tree yields and increasing hectare productivity, developing olive oil-related processing industries, and encouraging the acquisition of international quality and conformity certifications. Source: alfilahia.net