A balm of oil

The Israel Olive Oil Board and Palestine Olive Oil Council plan to display a joint Israel-Palestinian olive oil brand, to be called "Peace Oil", at international exhibitions.

El-Jaby said that in contrast to the past, the olive harvest in the territories was successful and was not disrupted by Jewish settlers. The biggest problem was a large surplus of over 10,000 tons, which could not be marketed.

The olive harvest began in mid-September, and ended two weeks ago. The Palestinian harvest was 32,000 tons this year, worth $64 million. There are 900,000 olive trees and 270 modern olive presses in the territories. The industry accounts for 3.5 million work-days and contributes 2-3% of Palestinian GDP. For the sake of comparison, Israel's olive harvest amounts to 7,000-8,000 tons a year.

The main problem Palestinian olive growers face is a lack of market for their produce, which results in large surpluses. Domestic consumption is 14,000 tons of olive oil a year. Another 5,000 tons is sold to Israel, and 2,000-3,000 tons to Arab countries. The rest remains unsold in warehouses, to which 10,000 tons from this year's harvest is being added.

Jordan, which imported olive oil from the territories for years, has become a competitor, exporting 900 tons a year to Israel, duty free. The severe recession in the territories has also reduced domestic consumption. Another problem is the fall in global olive oil prices to $2 per kilogram.

Israel Olive Oil Board director general Amin Hasan told "Globes" that Israel and the Palestinians were cooperating in joint pesticide research, and in a venture to try to produce electricity from olive waste, financed by Europe. The greatest help Israel can give the Palestinians in the olive oil industry is to improve the quality of oil for export.

Published by Globes [online], Israel business news - www.globes.co.il - on January 11, 2005