Greening

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UNIVERSITY of the AEGEAN
Greening the Olive Oil Product
Gloria, Jessica, Ulf, Veronika, Chin-Yu Kyriaki,
Polychronis, George, Miltiadis, Michael
Lesvos - May 2002
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Content of Presentation

• Research Objectives
• Current Situation of Olive Oil Industry
• Routes of Development
• Recommended Route
• Factors of Success
• Conclusion

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Research Objectives

• Is greening the olive oil product the future for
  olive oil industry in Lesvos?
• Why is it interesting to green the olive oil
  product, from a regional and individual
  perspective?
• How can actors in the system of provision green
  the product?

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Definition of Greening

• Greening will be defined as product or
  process changes that will promote a sustainable
  olive oil industry, in which the balance of
  environmental, social and economic aspects and
  issues results in the most benefits for Lesvian
  society.

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Current Situation of Olive Oil Industry in Lesvos
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Olive Oil Qualities

• 1.  Virgin Olive Oil
• Extra Virgin Olive Oil
• Virgin Olive Oil (fine)
• Ordinary Virgin Olive Oil
• Lampante Virgin Olive Oil
• 2.  Refined Olive Oil
• 3.  Olive Oil

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Olive Oil Production

• Olive oil production for every 2 years is
  estimated to be 42,000 tons
• Olive oil production accounts for 3.6 to 15.3 of
  the gross national product of the island
  depending on the olive fruit season yielding
• Greek olive oil production consists of 70-80
  extra virgin olive oil

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Mapping the System of Provision
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End Market
Packagers/Sellers
Mills
Farmers
11 packagers
75 mills 2 extractors
24000 farmers
Union of Agri. Coop.
Cooperative 42
60-65
Local in Lesvos
90
Private 31
Domestic In Greece
Public
Simantiris (organic)
62 Cooperatives
Export (Italy, Spain)
Community 2
Terra Eolica
Private
Export (Germany, UK, Japan...)
Extractors 2
Private
Non-Cooperative
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Issues of Concern

• Environmental issues
• Environmental issues related to farmers
• Environmental impacts of the olive mills
• Economic Issues
• Social Issues

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Market Trend

• Rising interest in foods perceived as healthy
• Organic food is one of the fastest growing
  sectors of the entire European food market.
• Market forecasted to grow from its current level
  of under 2 to take 10 of total food sales by
  the year 2006 in Europe
• The organic share of agriculture in Greece is one
  of the lowest within EU, but with highest of
  growth
• 65 of Lesvos olive oil is sold as bulk to mainly
  Italy and Spain in order to fill their market
  demand.

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Routes of Developmentof Olive Oil Industry in
Lesvos
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Factors Influencing the Future

• EU policy on traceability of origins
• Decrease of subsidies to farming
• Increasing market for organic food
• Increased appreciation of quality olive oil
• Development of infrastructure in Lesvos
• New regions or countries starting olive oil
  production

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Routes of Development

• Route 1 Increased intensive farming
• However, intensive farming is limited
• Higher environmental impact
• Loss of Lesvos image
• Higher production, lower quality
• Route 2 Increased organic farming
• Up to 10
• Low environmental impact
• Potential marketing of image
• Maintained quality, price premium
• Route 3 Decreased total farming
• The most likely
• Loss of heritage and image of the island
• Soil erosion
• Immigration and urbanisation

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Recommended Route
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SWOT Analysis for Lesvian Olive Oil Industry

• Strengths
• Large asset of well-preserved olive trees
• Heritage and tradition of olive farming
• High quality
• Weaknesses
• Small-scale actors, high production cost
• Conservative farmers
• Limited knowledge on market channels
• Fluctuating annual yield of olives

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SWOT Analysis for Lesvian Olive Oil Industry

• Opportunities
• Trend of increasing demand of organic products
  and healthier food
• Small changes for conversion to organic farming
• Threats
• Alternative land use and mass tourism
• Competition from potential entries
• Subsidies reduced or stopped

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Sustainability Criteriafor the Island of Lesvos

• Environmental
• Not to increase the negative environmental
  impacts
• Economic
• To increase the potential to obtain price premium
• Social
• To preserve the heritage and tradition of the
  island
• To make olive oil production attractive to young
  people

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Recommended Route

• Increase Organic Farming!!

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Factors of Success
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Factors of Success

• Increased value of the product
• - Coordination of marketing
• More professional farming
• Education, training
• Overcome mentality barriers
• Information, education

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Conclusion

• A sustainable olive oil industry can create a
  balanced link among the cultural attachment to
  olive trees, the quality of the olive oil product
  and the green island of Lesvos.

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Thank you!!!
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