Egypt, a land steeped in history and culture, is emerging as a significant player in the global olive oil market. With its favorable climate, fertile soil, and growing government support, the country possesses immense potential to become a major producer and exporter of this coveted culinary staple.

While its production levels have fluctuated in recent years, Egypt's commitment to expanding olive cultivation and improving olive oil production techniques positions the country for continued growth and success.

Egypt's Olive Oil Footprint

Thanks to its Mediterranean climate and fertile soil, Egypt is increasingly becoming a key player in the global olive oil market. In 2023/2024, Egypt ranked 10^th globally in terms of olive oil production, producing 40,000 tons of olive oil, according to the World Population Review. Although this figure matches 2022/2023 production, it reflects a 17.5% decrease from the 48,500 tons produced in 2021/2022, largely due to climate change, as per ReportLinker.

In 2023, the value of Egypt's exports of olive oil and its fractions, whether refined or not, but not chemically modified, surged by 489%. Exports were valued at around $19.995 million, a dramatic increase from $3.393 million in 2022, as reported by TrendEconomy.

Expanding Production and Market Presence

Olive oil production in Egypt is deeply rooted in tradition. Despite dips in output over recent years, Egypt has the potential to boost its olive oil production due to its ideal climate, particularly in Sinai and the North Coast. These places support the growth of native olive varieties like Nabali and Toffahi.

Government initiatives have been encouraging olive cultivation. In 2015, President Abdel Fattah El-Sisi launched an initiative to plant 100 million olive trees. By 2023, the number of olive trees more than doubled to 58 million, from not more than 25 million planted olive trees before 2015, a study by the General Authority for Investment and Free Zones (GAFI) showed.

Therefore, olive production in Egypt is expected to grow from 1.2 million metric tons in 2021 to 1.4 million metric tons by 2026, representing a 2.7% annual increase. Hence, Egypt's olive oil production is forecasted to reach 42,200 tons in 2026, according to ReportLinker.

With proper planning, Egypt has the potential to expand its global market presence. Yahia Mohamed Metwally Khalil, Professor of Agricultural Economics at the National Research Center, tells Arab Finance: “In any economic study, marketing must always precede production to achieve targets.”

“Producers need to study foreign markets that demand olive oil and identify the specific varieties and standards these markets require to align production with market preferences," Khalil adds.

Challenges Facing Egypt's Olive Oil Industry

The olive oil industry in Egypt faces several challenges, starting with the cultivation of olives. Shayma Said El Araby, a PhD holder and economic expert, highlights to Arab Finance, “While Egypt is one of the largest olive oil producers, it faces many challenges in agriculture, production, and export.”

“The main issue hindering Egypt's leadership in olive oil cultivation and export is the lack of experience and knowledge among farmers when it comes to agriculture,” El Araby explains further.

Climate change is also impacting the olive yield in Egypt. “We cannot ignore the impact of climate change,” El Araby says. “It weakens production and reduces the ability to compete on price in global markets.”

“However, if the state supports producers by facilitating procedures and exempting their raw olive imports from customs duties, Egypt could gain a competitive edge in the global market,” El Araby suggests.

Khalil agrees, stating that climate change is no doubt affecting the production of any crops now, particularly vegetables that used to be planted at a certain temperature. “Now, temperatures are very different from before. This affects the fruit quality.”

Another major challenge facing the olive oil industry in Egypt is the need for advanced olive presses. The extraction industry in Siwa Oasis, for example, suffered from the spread of primitive methods and techniques in manufacturing. A 2021 study titled ‘Economic and financial evaluation of olive processing in Siwa Oasis,’ conducted by a number of agriculture professors, revealed that such primitive methods in olive oil extraction hinder economic efficiency.

The study showed that investment in olive pressed in Siwa Oasis is reasonably profitable. The financial criteria also suggested these projects are economically feasible. Therefore, attracting investments in olive oil pressing is a significant step in enhancing this industry in Egypt and boosting its competitiveness.

Egypt's burgeoning olive oil industry, rooted in its rich agricultural heritage, holds a promising opportunity for the country to expand globally. By investing in olive cultivation, modernizing production techniques, and addressing challenges such as climate change and outdated infrastructure, Egypt is well-positioned to become a major player in the international olive oil market.

By Sarah Samir

Egypt sets indicative price for 2024/2025 wheat cultivation season Updated 10/2/2024 1:48:00 PM

Egypt, Polish Padma discuss plans for furniture production complex in New Alamein City Updated 10/2/2024 2:16:00 AM

El-Khatib encourages British renewables firms to boost investments in Egypt Updated 9/18/2024 3:30:00 PM

Egypt to reduce rice cultivation area by 32% in 2025 over water shortage Updated 9/17/2024 9:51:00 AM

Egypt’s auto industry could lag behind North African peers: Fitch Solutions’ BMI Updated 9/4/2024 7:55:00 AM