On the international market, olive oil prices are currently experiencing a dizzying surge due to climate change and drought which have severely affected the major producing countries of the Mediterranean basin.

Last August, the price of oil showed an increase of 130% over one year. In September, the tonne was worth 8,326 euros.

In Spain, which is the world’s largest producer and exporter of ” liquid gold “, olive oil prices have jumped 42% since the start of the year to exceed the 10 euro mark per liter. Spanish production fell by 50% last year to stand at 650,000 tonnes of olives collected, according to the Reporter website.

In France, olive oil prices increased by 20% on average last August.

Such an outbreak should in principle constitute a boon for Algeria, which has a golden opportunity to boost its exports.

Unfortunately, this is not the case. In this interview granted to TSA, Hakim Alileche, Algerian producer of Dahbia brand olive oil who has so far won a total of 22 international medals, explains the reasons why Algeria is not benefiting from this surge in prices. prices on the international market to increase its exports.

Olive oil prices are currently skyrocketing across the world. How do you explain this very strong increase?

The surge recorded this year is due in particular to a large production deficit, especially in the major producing countries of the Mediterranean basin, such as Greece, Italy, Spain, Tunisia, and elsewhere.

This surge is due to climate change and drought which have severely affected production. In Italy and Tunisia, where I visited recently, olive oil production has fallen by more than 50%.

The Spanish press reports a drop of more than 50% in production. At the same time, demand has exploded. Since the health crisis linked to COVID-19, Asians, particularly the Chinese and Indians, are consuming more and more olive oil. On the international market, demand has doubled.

Algerian exports of olive oil remain very low. According to figures from the Algex Agency, the value of Algerian exports of olive oil did not exceed 1.88 million dollars in 2021 with 600,000 tonnes. Why does Algeria not take advantage of this surge in prices on the international market to increase its exports?

Tunisia, which produces 20 times more olive oil than Algeria, exports 80% of its production. Nearly 50% of Tunisian olive oil is packaged, which gives it better-added value.

Algerian producers must break away from the ancient olive-growing practices that we have inherited from our ancestors. After being picked, the olives are left outside to overripe before being crushed.

Currently, Algerian exports are limited to a small niche market constituted by our community abroad. This is not enough at all.

To increase our exports, we must produce much more and improve quality. We must move very quickly towards intensive plantations because the current Algerian olive oil fleet is not enough.

We must universalize our production practices to obtain better quality. There are very simple production techniques dictated by the International Olive Council, which must be respected. Care must be taken to ensure that quality is assured.

Is the ball in the court of Algerian producers?

The ball is in the producers’ court, but at the same time, bureaucracy in local administration must be eliminated.

The government is making a lot of efforts to develop the olive industry. Support for olive growing is massive and visible. There is a great desire for help from central public authorities to support olive growers.

During a recent seminar held at INRA, I expressed to the Minister of Agriculture and Rural Development whom I met, my wish to have agricultural land, because our produced quantities are not are no longer enough.

He then shook my hand and welcomed my request. Even banks have been instructed to finance agricultural producers. There is a desire to help the sector.

However, the instructions given by high authorities are not implemented by local officials. Worse, despite the goodwill of central public authorities, there are those responsible in local administrations who are holding back investment.

We absolutely must eliminate bureaucracy. The other reason for the delay in the development of agriculture in Algeria is that of dishonest investors who acquired agricultural land, and obtained aid and subsidies before giving up. In this sense, it must be said that the press plays an important role in airing our grievances.

The olive harvest campaign is about to be launched very soon in Algeria. What are your forecasts for the yield of your olive groves?

The fruit yield is average this year. During the month of May, we suffered a problem linked to the sharp drop in temperatures during the night which slowed down the sap of the olive trees. As soon as the tree becomes stressed, it undergoes an abortion. This phenomenon affected us a little. This is due to climate change and drought.

Dahbia brand olive oil has won a total of no less than 22 international medals. What are your new products?

We are still at the high end. We produce high-quality extra virgin olive oil. We rely on early harvesting to obtain organic virtues and ultra-premium quality.

We got medals. We produce olive oil with a green fruity aroma. We quickly crush our olives just after harvest. This year again, we remain on this register.

Later, we plan to diversify our products. With our expansions, we will produce virgin oil which has a higher yield so that its price is more accessible.

You should know that 100 kilos of olives yield 7 to 8 liters of extra virgin oil, while if you let the olives ripen until January, you can obtain up to 24 liters of virgin oil per quintal of olives.

What are your plans to expand your olive groves?

The Minister of Agriculture and Rural Development with whom I spoke gave us his agreement in principle to have 250 hectares of land in order to be able to plant 300,000 olive trees.

We hope to have these lands by the end of the year or early next year, in the wilaya of Djelfa and elsewhere. In the wilaya of Mostaganem, we launched with a partner an olive oil production project on 50 hectares of plantations.

We are ready to help new investors in this sector by sharing our experience. Our goal is the development of the olive industry in Algeria.