FINAL Evaluation Report Olive Oil - GS & RM

Italian Agency for Development Cooperation
(AICS)
Italian Ministry of Foreign Affairs and International Cooperation
(MAECI)
APPRAISAL OF PAKISTANI OLIVE OIL VALUE CHAIN
Key Findings and Recommendations
Final Report
Evaluation team:
Giuliano Soncini, Evaluation expert
Riccardo Montanari, Agribusiness expert
Islamabad
August 2016

Giuliano Soncini Riccardo Montanari 2
Table of Content
Acronyms
I Executive Summary 5
II Introduction 10
III Background and context 12
IV Results achieved in the olive-oil supply and value chain 17
V The reviewed SWOT analysis 20
VI Completeness, adequacy and relevance of information on cultivation techniques,
production costs, organoleptic characteristics of the final product and the related
market prices in order to identify the intervention guidelines of the Italian
Cooperation
VI - i Cultivation techniques 21
VI - ii Production costs 23
VI - iii Organoleptic characteristics of olive oil 26
VI - iv Market prices 26
VII Systematisation of lessons learned on previous experiences from
the olive oil projects financed by PIDSA 30
VII - i Agronomic and technical perspective 31
VII - ii Processing/milling facilities perspective 32
VII - iii Capacity building perspective 33
VII - iv Market perspective 33
VII - v Political perspective 34
VIII The survey’s results concerning the draft of the action plan focussed on training
needs of all the stakeholders of the olive oil sector, including, but not limited, the
quality aspects of production and 4Ps marketing mix (product, price, place and
promotion) 36
IX Consistency of Italian public and/or private partners to be involved in specific
bilateral cooperation programs 37
X The solidity and reliability of the key institution/bodies identified as agents of
development of olive oil sector in Pakistan, with particular attention to the
following: i) entity that might be involved in public - private partnerships, ii)
initiatives that may represent an added value for olive oil supply and value chain
to be eventually co-founded the Italian government and iii) initiatives that can
increase the profitability and sustainability of on-going public investment.
37

XI The results, in terms of participation and awareness, of the attendance of three
seminars/workshops in which it has been illustrated the guidelines for the
development of the olive oil industry and the groundwork for drawing up a
proposal of a strategic National Plan for the Development of Olive Oil Sector.
38
XII Conclusions and Recommendations
XII - i Conclusions 39
XII - ii Recommendations
XII - ii - a Policy 42
XII - ii - b Projects 43
XIII Lessons Learned 44
Annexes
1. Giuliano Soncini and Riccardo Montanari Terms of Reference 45
2. List of documents and other reference materials consulted by the evaluators 51
3. Terms of Reference for Agribusiness Supply and Value chains 53

Acronyms
AICS Italian Agency for the Development Cooperation
DGCS General Directorate for the Development Cooperation (now AICS)
EAD Economic Affairs Division
FAO Food and Agriculture Organization
FATA Federally Administered Tribal Areas
GoP Government of Pakistan
IAO Istituto Agronomico per l’Oltremare - Agronomic Institute for the
Overseas
MAE-DGCS Italian Ministry of Foreign Affairs - General Directorate for the
Development Cooperation (now MAECI-AICS)
MAECI Italian Ministry of Foreign Affairs and International Cooperation
MFS&R Ministry of Food Security & Research
MPDR Ministry of Planning, Development & Reform
NARC National Agricultural Research Council
NWFP North Western Frontier Provinces
PARC Pakistan Agricultural Research Centre
PBS Pakistan Bureau of Statistics
PEEP Punjab Enabling Environment Project
PERI Punjab Economic Research Institute (public body within the Government
of the Punjab)
PIDSA Pakistan Italian Debt Swap Agreement
PODB Pakistan Oil Development Board
PPAF Pakistan Poverty Alleviation Fund
SWOT Strength Weakness Opportunities and Threats
TVET Technical and Vocational Education and Training

I Executive summary (main findings and recommendations)
The Olive oil value chain has been supported by the Italian Cooperation since 1986 with the
project Research & Development Project for Vegetables, Olives, Citrus and Deciduous Fruit
Crops (Punjab, NWFP, Baluchistan and at NARC Islamabad).
Several other projects followed:
- Promotion of production and commercialization of Olive oil in Pakistan;
- Technical assistance and support to line ministries in the agricultural sector with
emphasis on olive production - Afghanistan, Nepal and Pakistan - AFNEPAK, and
- Promotion of olive cultivation for economic development and poverty alleviation within
PIDSA programme.
The upcoming Professional Capacity Building and Extension in Agriculture – TVET could
also have an important component related to the Olive oil value chain.
Since the year 2000, several other projects have been funded by the Government of Pakistan
and more recently by the Provincial Governments, showing the great interest in developing the
Olive oil sector.
There are several reasons that make the olive oil value chain important for Pakistan:
- the import of edible oils is currently reaching 2.150.000 tons/year and the national
production is of 910.000 tons/year;
- the total value of imported edible oils in Pakistan is often reported as the second highest
value, 1,62 Billion € (2,05 Billion USD) after oil import for energy, transportation and
industrial purposes, (estimated in 13,5 Billion € - 15 Billion USD - in 2014-2015);
- Olive trees could grow in marginal areas where no other crops could grow, therefore not
competing for land with current agricultural systems;
- planted olive trees and natural forests of wild olives contribute to land protection and
improve microclimate locally;
- Olive oil and table olives could contribute to food security and poverty reduction.
The Italian Cooperation fielded a support mission from 12/05 to 03/07/2016 composed by Mr
Leonetti, Mr Valle and Mr Vannini to advise on the advancement of the olive oil value chain.
Mr Giuliano Soncini, senior evaluator, and Mr Riccardo Montanari, agribusiness expert, were
requested by AICS Islamabad to perform an overall assessment of the olive value chain and
produce the current report, capitalising on the results and recommendations of the other
MAECI mission. The evaluators were in Pakistan from 27/06 to 30/07/2016 (Soncini) to 10/08
(Montanari) and also performed the ex-post evaluation of the IAO - Swat Valley fruit projects,
phase I and II.
The Leonetti - Valle assessment has been integrated with an overall analysis of the supply and
value chains, new estimates of production and sales costs, identification of possible typologies
of producers, SWOT analysis. Details are in the ToR, in Annexe 1.

The main findings for the edible oil market are as follows:
a. the edible oil trade and consumption in Pakistan is covered by:
i. import of several types of edible oils (palm, soya bean, sunflower and other edible
oils);
ii. national production;
b. the import of edible oils is 95 % low-priced palm oil, which is in part further processed,
hydrogenated, and marketed as vegetable ghee;
c. the national production of edible oil is mainly constituted by cottonseed oil, also a low
price commodity;
d. Desi ghee and butter (from buffaloes, cows) also satisfy part of the edible fats national
market. The country production is comparable in size to the production of edible oils
(0,68 Million tons ghee, 0,91 Million tons edible oils). Around 70% is for self-
consumption by “subsistence” and “nearly subsistence” farming rural population;
e. national production of Olive oil is difficult to assess because of absence of monitoring
systems set up by projects in the past and also because of logistical reasons: dispersion
of planted sites, distances, accessibility, leading to an overall and high cost of
information collection;
f. currently commercialised Olive oil is almost totally imported. Although some
quantities could be small-scale productions for self-consumption and remain
“invisible” in statistics, the current estimates for national production report 5 - 6 t/year.
The internal market of olive oil is currently satisfied by the imports of 1 300 t/year and
has a potential absorption of 2 500 t/year;
g. the experts estimate that the internal market of olive oil, in the next future, could be
covered at around 70 % by national production, around 1 800 t/year; while the
remaining 30 % would likely remain a niche market, with very high quality/high price
imported oil. Although the marketed quantities of olive oil appear to be small, the value
and market price per kg is several times higher than other edible oils. Currently, the
internal market of edible oils is largely covered by products that have a retail price of
1/6 or less compared to imported olive oil;
h. a careful measurements campaign and an assessment of production costs and margin,
generating real field conditions figures are strongly needed. It is not advisable to rely
on estimates, projections; ranges produced starting from published data and
extrapolations from other areas;
i. estimates done during this evaluation, conservative and more realistic than figures often
found, show that a more careful approach to new projects procedures and
communication should be adopted. Olive oil is a mature sector in world economy
where Pakistan is entering and still tuning the several stages of the value chain. It must
be clear that planning should be done on long-term basis and benchmarks to be reached
could help the whole process;

j. the expectations grew enormously, and the risk of deception has to be avoided,
clarifying the range of interventions and which reasonable objectives can be achieved;
The emerging, identified technical options for planted olive tree products are:
1. Mixed marginal orchards. These are small scale production units on marginal
lands. Olives are for direct processing as table olives/pickles/oil and self-
consumption or local market. It encompasses the poorest segments of the rural
population. Costs per kg of product are higher because of the small scale. The
investment seems not to be profitable;
2. Smallholder and family producers. Medium/small scale production of olive oil
for self-consumption and/or sale, if logistical infrastructure is there, such as
grinding mills, roads, transportation, etc. Production costs are midway between the
marginal orchards and the commercial farms. The investment seems able to
produce some net profit;
3. Large scale commercial estates. Such farms are to be established, although the
process started. The olive oil production aiming at the internal market first and
even export in the sub region if costs are competitive and other conditions arise.
Production costs are the lowest, compared to the other types identified. There is a
probability to produce net margin from the investment;
The existence of large wild olive trees forests create some opportunities:
1. Grafting/top working to produce commercial quality olives;
2. Harvest of wild olives for processing/oil extraction for human
consumption/cosmetics production;
3. Soil protection, erosion control, carving wood, landscape value.
The analysis of concluded or on-going projects, implemented up to now in Pakistan on the
olive value chain, lead to the following conclusions:
a- The Olive oil value chain, although not the most difficult in tree products, is anyway
requiring the availability of information, knowledge, practical skills and considerable
overall attention to details in planning and implementation, this, in order to became
viable and explicate the potential that has been initially recognised in it;
b. This potential has led in the past to several projects and investments, at National,
Provincial and International co-operation level;
c. New funds will be invested in support to this value chain, again, at National, Provincial
and International co-operation level (examples: the TVET programme funded by the
Italian Cooperation, the PEEP program funded by USAID, etc.);
d. The fact that the activity involves products for human consumption requires attention
to safety/health issues (e.g.: treatments with insecticides, fungicides, processing,
conservation, etc.);

e. Overall information on projects’ activities and results is of difficult access. The
baseline information, other primary data, figures to draw conclusions and lessons
resulting from field activities, required to decision-making and to guide upcoming
projects, are scattered and often contradictory;
f. Many figures are recurrent in reports and papers, however the original primary data is
often unclear. Calculations in plans and estimates are frequently offering a range. The
evaluation team found several questionable figures that may lead to unrealistic
forecasts1. This point is specifically addressed in the recommendations;
g. The emphasis on evidence-based decision-making currently necessary for governments
and organizations puts a greater focus on reliable figures and statistics. The role of
measuring and monitoring activities, results and progress towards development goals and
targets is fundamental;
h. It is unclear if a proper system of monitoring and evaluation was set up and is still
working, which type of information was/is collected, if it is standardised and, finally, if
collected figures are processed;
i. The numerous projects implemented since 1986 have established an estimate of at least
2500 - 3000 ha of olive trees plantations (GoP-PSDP, PARC-PIDSA projects alone
respectively1180 ha and 1816 ha);
j. These plantations are likely to yield olives in commercial quantities starting from 2017.
It is the right time to set up the necessary steps (harvest, transport, milling, storage,
packaging, marketing, etc.) to further foster the value chain, including extraction plants
(mills and related infrastructure) and, finally, produce commercialisation;
k. In this complex and rapidly evolving context, with activities planned at National,
Provincial and International co-operation level (MAECI-AICS, USAID, JICA), it is of
high priority to formalise the National Compliance Governance Framework for
Olive oil value chain;
l. The need to set up a national framework for olive-oil value chain was identified by the
technical mission of Mr Luciano Leonetti, Mr Stefano Valle and Mr Andrea Vannini,
05-06/2016. This proposal is strongly supported by the evaluation mission team and
further developed in the recommendations;
m. The risk of not having such a framework is that several components of the value chain
are in some cases lacking or developed in isolation, dispersed and do not benefit of
existing knowledge and past experiences. The involved sectors span from sapling
production/import, to cultivars choice, plantations, phyto-sanitary aspects, pest control,
harvest, processing options, commercialisation, quality standards, legal issues,
monitoring, research, etc.
1 E.g.: figures on olive production per plant, % of extracted oil from olives, prices for produce.

The recommendations for future orientation and follow-up action to Donor and Government
includes:
Policy recommendations are aligned and in support of the proposals by
Leonetti/Valle/Vannini mission 05-06/2016.
a) It is fully recognised the need to develop a National Compliance Governance
Framework for Olive oil supply and value chain. This is necessary to allow National bodies
to maintain a level of control in the value chain governance and have new activities, rapidly
increasing in number, in a clear framework, favouring an ordered growth of Olive oil sector’s
development and commercial projects.
b) The second recommendation is to set up Olive Oil Units at the Ministry of Food
Security and research/Agriculture, in close liaison with the Ministry of Plan, with policy
preparation support and technical roles (Olive oil Act and National Olive oil Plan). This also
in order to centralise existing information on past and new projects, focusing on technical
issues. Although it could already be difficult to assess the hundreds of sites and activities set
up in more than 10 years, it is definitely possible to select the best clusters/sites and initially
concentrate efforts on these.
c) The third recommendation is the urgency to clarify and fill normative gaps in order to
obtain a legal framework covering sectors like recognition and registration of cultivars
introduced in the Country, possible new varieties, regulations for the propagation of olive trees,
import of saplings, certification of nurseries able to sell disease free and genetically identified
plants. It emerged that with the current legislation, although plants are regularly produced in
nurseries, it is illegal to do this. It is clearly unreasonable - and enormously risky - to depend
on import of plants to develop an olive tree value chain. It is strongly advisable to become
member of the International Olive Council, (IOC).
d) Subventions are strongly recommended in order to favour the initial small scale and
marginal land farms set up and the subsequent acquisition of agricultural inputs, fertilisers, drip
irrigation systems, etc. It has to be stressed that if the Rural development approach (see section
VII) is privileged, then planting on marginal lands could be much less productive, as it has
emerged that irrigation is necessary in order to have a constant production.
For what concerns the implementation of existing or new projects, the recommendations are
as follows:
e) Establish a system of monitoring and primary data collection at field level, often
very different from research station conditions. Because of logistic costs for field trips,
innovative ideas for figure transmission should be explored (e.g.: mobile phone and
communication networks/sms, etc. Digital images of plants, fruits, parasites, disease attacks
could be sent in many cases via mobile network, samples could be stored and periodically
collected). This activity could be combined with the following point f).
f) Establish a small network of “model farms”, true “pilot sites”, based on existing
interventions and capitalising on investments done in the past by several projects on olive tree

culture 2. Objective of these sites (1 or 2 per province, strategically located) is to produce
reliable figures for agronomical parameters and have demonstrations sites where conduct
trainings and hands-on seminars for producers. The essential information needed is in field
conditions, not research station, where other activities should be carried on. The main primary
information required is about plants/ha, plant survival rate, kg of olives produced per plant/ha,
olive oil extraction rate %, kg/ha oil production, (organoleptic quality of oil/acidity), farm gate
sale price for olive oil and table olives, best adapted and productive cultivars. For each cultural
operation costs and hours of work for the various activities: land preparation/ploughing/soil
management, fertilisation (organic/chemical), irrigation, pruning, weeding, pest and diseases
management, harvesting, transport, milling, storage, packaging.
The lessons learned during the assessment are, in extreme synthesis, that the Olive oil value
chain is extremely interesting for Pakistan if seen and clearly set in the correct perspective.
Information sometimes freely circulated or poorly presented, without the support of correct
figures, might mislead and create wrong expectations.
The marketed quantities of palm, cottonseed, rapeseed, sunflower, soybean, canola oil, etc.
imported or locally produced in Pakistan, without overlooking at ghee made in rural areas for
self-consumption are such, that olive oil is realistically not able to substitute imports, from the
2.177.300 tons registered for 2010-2011 by the Pakistan Bureau of Statistics and steadily
increasing.
The mid-term realistic objective could be to produce a national product that can compete in
quality and price with imported olive oils, currently mainly from Spain, and gain a substantial
part of the internal market. The potential absorption for olive oil in Pakistan has been estimated
in 2500 tons/year. The current traded local production is almost negligible, with 5-6 tons/year,
although an unknown quantity is likely to be self-consumed and not appear in statistics. Olive
trees planted in the past years are starting now to produce olives in sizeable quantities, so there
is ample space, and urgent need, to set up the National Framework that would regulate and
structure the internal production sector/value chain.
It must be stressed the importance of accurate assessments of the quality, origin, certification
of plants propagated in Registered nurseries. The National Framework for olive tree culture
and the Legal Framework are essential steps in this direction.
Future activities on Olive trees should be more careful to avoid a piecemeal approach
often criticised in the past for food value chains and, again, the foreseen National framework
could be a huge and important change. Capitalise on past experiences is necessary and to have
field collection of reliable data is mandatory to keep the complex olive tree value chain on
track.
2 Three main types have been generally internationally recognised: 1) Traditional marginal orchards; 2) Semi-
intensive orchards; 3) High density orchards. The suitable model for Pakistan conditions should be investigated.

II Introduction
The general aim of this report is to review and to evaluate the main findings and results
achieved by the previous and on-going projects co-founded by the Italian Government,
concerning the opportunity/possibility to promote the domestic production of olive oil through
the cultivation of olive trees, in order to reduce the expenditure for edible oil importation and
recover the non and under-utilized marginal lands accessible to small holders producers.
The report is utilising an evaluation framework/model utilized by the United Nations and
European Commission, in order to adopt a standard methodology. This framework has already
been applied to project evaluations in Pakistan in the past and could be utilised for other
evaluations of rural development projects in the country. In this report, however, the
framework has been modified to satisfy the specific requests of the AICS and the fact that is
not evaluating a single project, but is assessing several activities and projects that were active
in the olive-oil value chain.
In detail, it will be evaluated:
 The SWOT analysis results regarding the olive oil supply and value chain in order to
identify constraints and opportunities for the development of above mentioned sector;
 Completeness, adequacy and relevance of information on cultivation techniques,
production costs, organoleptic characteristics of the final product and the related market
prices in order to identify the intervention guidelines of the Italian Cooperation
programs on olive oil supply and value chain (PIDSA, PPAF and TVET);
 Systematization of lessons learned on previous experiences from the olive oil projects
financed by PIDSA;
 The survey results concerning the draft of the action plan focussed on training needs of
all the stakeholders of the olive oil sector, including, but not limited, the quality aspects
of production and 4Ps marketing mix (product, price, place and promotion);
 Consistency of Italian public and/or private partners to be involved in specific bilateral
cooperation programs;
 The solidity and reliability of the key institution/bodies identified as agents of
development of olive oil sector in Pakistan, with particular attention to the following:
i) the entities that might be involved in public - private partnerships; ii) initiatives that
may represent an added value for olive oil supply and value chain to be eventually co-
founded the Italian Government; and iii) initiatives that can increase the profitability
and sustainability of on-going public investment;
 The results, in terms of participation and awareness, of the attendance of three
seminars/workshops in which it has been illustrated the guidelines for the development
of the olive oil industry and the groundwork for drawing up a proposal of a strategic
National Plan for the Development of Olive Oil Sector.

The report was developed by the evaluators interviewing a team of three olive oil sector experts
during their mission in Pakistan on behalf of the AICS, Mr Luciano Leonetti, Agro-economist,
expert in agricultural supply and value chain, Mr Stefano Valle, Forester, expert in rural
development and former Italian co-director of AFNEPAK project and Professor Andrea
Vannini, Agronomist-phytopathologist, at the University of Tuscia - Agricultural Sciences.
Furthermore, it was possible to organize an in depth meeting with Mr Riaz Alam, Senior
Scientific Officer of Olive Research and Development Institute at PARC.
Other sources of information were several documents listed is in Annex 2 and visits to local
retail markets in order to collect selling prices of edible and olive oil.
The mission comprises:
 Mr Giuliano Soncini, team leader, senior evaluation expert of rural development
projects, and
 Mr Riccardo Montanari, senior expert in agribusiness, planning, management,
monitoring and evaluation of rural development projects and farm management.
Terms of reference for the evaluation are in Annex 1.
Mission members are independent and thus they did not have any previous direct involvement
with the project either with regard to its formulation and/or implementation.
The mission is fully responsible for its independent report, which may not necessarily reflect
the views of the Italian and/or Pakistani Government.
The report is completed, to the extent possible, in the country and the findings and
recommendations fully discussed with all concerned parties and wherever possible consensus
achieved.
The mission members wish to thank all the persons met by the mission, who were most helpful
in answering our questions and who provided us with great courtesy and hospitality.
III Background and context
The edible oils production in Pakistan do not cover the enormous and ever increasing 3 request
for the various fats constituting the total internal consumption.
The internal market is satisfied only with the import of several products, spanning from low
price palm oil, to soya bean and other vegetable oils, to better quality, higher price olive oil.
In urban areas and in certain segments of the Pakistani population the use of olive oil is highly
esteemed because of cultural and religious reasons, olive trees are considered blessed trees and
olive oil was recognised as a cure for 70 diseases.
3 Since the early ’90ies the increase of edible fats was calculated around 8% per year.

More recently, olive oil consumption is growing in wellbeing conscious urban context for
health reasons: because of its high content of monounsaturated fats, antioxidants, absence of
cholesterol, etc. This increase in consumption is in spite of its much higher price compared to
other vegetable oils and animal fats. Retail price of mixed vegetable oils, sunflower, canola,
etc. is around 150 Pkr/l (1,27 €/l), while imported extra virgin olive oil is over 1 000 Pkr/l
(8,5€/l).
To fully understand the importance of the edible oil sector, it is useful to know that the total
value of imported edible oils in Pakistan is often reported as the second highest value, 1,62
Billion € (2,05 Billion USD 4) after oil import for energy, transportation and industrial
purposes, estimated in 13,5 Billion € (15 Billion USD) in 2014-2015.
Although olive oil constitutes only a minimal fraction of the edible oil market, it is the most
expensive product per kg. The value of imported olive oil is estimated in 3,1 Million € in 2014-
2015 (3,5 Million USD).
The edible oil import was Government regulated up to 2005, then liberalised, tariffs and duties
eliminated. No subsidies are currently foreseen in support to the olive oil production, although
investments in projects to develop the sector are significant.
Pakistan Bureau of Statistics and FAO figures for 2010-2011 show edible oil imports of 2,15
Million tons and a national production of 0,91 Million tons (70,5%-29,5%).
Figure 1. Edible Oil Import/National Production (2010-2011)
Of these immense quantities, palm oil constitutes about 90% of imports, while national
production of cottonseed oil constitutes 46 %, sunflower oil 19 % and rapeseed-mustard oil 35
%.
Part of palm oil is further processed into vegetable ghee.
4 Exchange rate 06/2012 €/USD = 0,79
29,5
70,5
National
production
Imported

Figure 2. Edible oils import and national production (2010-2011)
It is also necessary to mention that Pakistan has a national production of butter and ghee (desi
ghee) from buffalo and cow milk that is considerable in size, compared to the national
production of edible oils: FAO figures for 2010-2011 report 0,66 Million tons butter and ghee,
compared to 0,91 Million tons of edible oils locally produced. The national production
contributes to satisfy the edible fats needs at Country level. Desi ghee is estimated being
consumed by the 70% of the production units classified in the “subsistence” or “nearly
subsistence” range, with 1-7 cattle heads in rural areas5. In recent years statistics show a
decrease in butter production, because of an increase in request for fresh milk from the market.
The ghee production at rural level/self consumption is still considerable.
The following figure summarises the total availability of edible fats and oils and their origin,
National production (orange shades) or imports (blue shades). (Sources FAO, PBS, IAO
publications).
5 More recent figures show a steady decrease in production, the issue needs to follow up as has implications on
available edible fats to rural people.
-
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
1.600,0
1.800,0
2.000,0

Figure 2. Total edible fats, import and National production (2010-2011; tons).
Olive oil is represented by the small fraction indicated with 1.300 tons.
Importing edible oil is currently unavoidable, seen the national consumption of at least 2,75
Million tons. Import of edible oils is draining Pakistan of valuable financial resources in
foreign currencies; any effort to reduce imports has to be considered as relevant.
However, the huge differences in quantities and prices of the various edible oils, nationally
produced or imported, need to be seen in the right perspective and context, as the decision to
direct energies in a specific sector instead of another, even within the same wider edible oil
area, can move important financial resources and efforts.
It appears clear that taking the right decision needs a careful understanding of the whole edible
oils and fats sector.
In spite of the complex background, difficulties and lengthy process that the olive tree
value chain development could experience, a major point in favour of it is that olive tree
is the only edible oil producing species that can be grown on marginal lands, not
competing with any other cash crop in Pakistan.
The development of the “Olive-oil value chain”, while not considered by the experts the most
difficult, still is very complex and each step requires knowledge, skills and experience.
Furthermore, being related to production of food for human consumption, it requires
compliance to quality/hygienic standards, established and recognised nationally and
internationally.
1.951.100
157.200
66.400
1.300
659.916
422.900
314.685
172.117
Palm Imported
Other Imported
Soyabean Imported
Olive Imported
Butter and ghee National
Cottonseed National
Rapeseed-mustard National
Sunflower National

In the following table are summarised the main projects on the olive oil value chain that have
been established in Pakistan, both at Central and at Provincial level.
Table 1. Olive trees/oil related Projects
Name Years Implementing
Agency
Founded by Total Budget
Research & Development
Project for Vegetables, Olives,
Citrus and Deciduous Fruit
Crops (Punjab, NWFP,
Baluchistan and at NARC
Islamabad)
1986 - 1993 Agrotech,
NARC
Italian
Cooperation
3,6 M €
Accelerated Promotion of Olive
Cultivation in NWFP and
Potohar
2000 - 2004 GoP 0,5 M €
Rapid conversion of wild olives
into bearing species
2004 - 2008 GoP 3,7 M €
New Plantation of Olive in
NWFP, Potohar and
Baluchistan and maintenance of
olive orchards
2005 - 2010 PODB GoP 0,5 M €
Development of research
Facility Olive Model Farm
Sangbhatti).
2005 - 2011 GoP 0,5 M €
Promotion of production and
commercialization of olive oil
in Pakistan
2007 - 2009 IAO/PODB Italian
Cooperation
0,8 M €
Technical assistance and
support to line ministries in the
agricultural sector with
emphasis on olive production -
Afghanistan, Nepal and
Pakistan – AFNEPAK
Regional project
(Currently suspended)
2010 - 2016 IAO/PODB/
PARC
Italian
Cooperation
2,4 M €
Promotion of olive cultivation
for economic development and
poverty alleviation
2012 - 2016 PARC
(former
applicant
was PODB)
GoP/Italy
PIDSA
3,2 M €
Promotion of Olive Cultivation
on Commercial Scale in
Pakistan
2014 - 2019 PARC and
Provincial
Govs.
GoP 20 M €
Olive sector Development in
the Potohar Region
2016 - PEEP USAID 0,8 M €
Professional Capacity
Building and Extension in
Agriculture - TVET
2017 - Italian
Cooperation
20 M €

It has to be noted that Pakistan has large extensions of natural forests of wild olive trees (Olea
cuspidata, Olea ferruginea). The presence of this species has been considered important and
a specific project has been set up to make them productive with grafts of fruit bearing varieties
of Olea europaea.
The occurrence of these wild forests has an important meaning also in term of land use,
microclimate influence, soil protection from heath and erosion, landscape and possible harvest
and processing of the wild fruits.
The first formal tries of olive trees introduction in Pakistan can be dated back in 1986 with an
Italian Co-operation funded project. The trees that were planted at the time could be now
considered almost at the end of their best productive cycle and could have been, or still be, a
very useful source of information on suitability and adaptation to local condition of imported
cultivars from Italy, Spain and Turkey.
The many projects on olive production show the complexity of setting up a whole new value
chain and even if the cultivation of olive trees is not the most difficult one, considered that the
variables involved are numerous and up to now there is not clear-cut evidence and a defined
path to be followed. Involving a tree culture, the olive value chain is requesting long periods
of care before being able of drawing conclusions, the activities set up in the past and the trees
planted are now getting in production. It is urgent to define the national framework and
possibly protocols to collect, systematise and analyse the information already available and
what is likely to be collected in the next years.
Failing this analysis could bring to loss of valuable information and more and more difficulties
in the next future as an increasingly diversified context is going to develop, with National,
Provincial, bilateral cooperation projects and investments moving in many diverse directions.
IV Results achieved in the olive-oil supply and value chain
Aware of the extreme burden of the bill for edible oils importation in the balance of payments
(around € 1,62 Billion in 2014 - 2015), since 2000s the Government of Pakistan has supported
several development projects with the aims to promote and/or increase the domestic production
of edible oils through the cultivation of palm, sunflower, rapeseed and olive.
The Italian Government has recently supported said efforts co-founding 3 main initiatives,
concentrating on the olive oil value chain, as follows:
 Promotion of production and commercialization of the olive oil in Pakistan jointly
implemented by IAO and PODB (2007 - 2009, budget € 0,8 Million);
 Technical assistance and support to line ministries in the agriculture sector with
emphasis on olive production- Afghanistan, Nepal and Pakistan - AFNEPAK jointly
implemented by IAO and PARC (2012 – 2016, phasing-out, suspended in Pakistan,
budget € 2,4 Million);

 Promotion of Olive cultivation for economic development and poverty alleviation
implemented by PARC with financial assistance of Pakistan Italian Debt Swap
Agreement (PIDSA) (2012 - 2016, on-going, budget € 3,2 Million).
The main outputs of the project Promotion of production and commercialization of the olive
oil in Pakistan, ended in 2009, were:
a) The execution of training sessions on different subjects (nursery, technique of
cultivation, post-harvest processes, oil quality, etc.);
b) The establishment of one commercial scale oil mill at ARI in Tarnab (Khyber
Pakhtunkhwa) and other 8 small mills;
c) The cultivation of experimental 10 field plots (of one hectare each) in order to evaluate
the adaption of the newly imported cultivars from the Mediterranean region;
d) In order to identify the suitable surface where the olive’s trees could adapt and grow, a
Geographic Information System (GIS) study has been executed, identifying an area of
0,88 Million hectares suitable for olive cultivation, mainly located in Khyber
Pakhtunkhwa, Baluchistan and FATA;
e) A market analysis and evaluation of olive oil supply and value chain has been
conducted as an initial tool, useful to foresee possible scenarios of olive oil production
and market in Pakistan.
The main results achieved by the project Technical assistance and support to line Ministries in
the agriculture sector with emphasis on olive production- Afghanistan, Nepal and Pakistan –
AFNEPAK, (suspended in Pakistan, still active in Nepal), were:
a) The publication of an updated GIS report at District level, whose output was the
identification a surface of around 15 Million hectares suitable for the cultivation of
olive trees mainly located in Baluchistan (10 Million), in Khyber Pakhtunkhwa (3
Million), in Potohar Punjab (0,9 Million) and FATA (0,8 Million);
b) The release of a market analysis for the value chain and the olive oil consumption in
Pakistan, crucial issue to identify the dynamics of the diffusion and market of olive oil;
c) The execution of training session of master trainers on various topics (using GPS and
data management, applied modern agronomy techniques for olive tree growing and
production, harvesting and post-harvesting techniques, olive milling machinery
management, nursery management, oil quality testing);
d) Furthermore, 14 olive farmer associations have been established (3 in Punjab, 3 in
Khyber Pakhtunkhwa, 3 in FATA and 5 in Baluchistan) for the joint management of
cultural techniques and mills and for the organization of transport of ripe olives to be
processed for oil.
Currently, PARC is executing the project Promotion of Olive Cultivation for Economic
Development and Poverty Alleviation. Up to now, the main achievements were:
a) Plantation of 1.816 hectares of olive trees in Punjab (525 ha), Khyber Pakhtunkhwa
(469 ha), FATA (354 ha) and Baluchistan (468 ha);
b) Continuous supply of technical support for the rehabilitation and maintenance of 9 olive
progeny gardens / plant mother orchards, representing the key sources for the supply of
reliable bud material/pool of germplasm for the production of selected and pathogens
free cultivars;

c) Establishment and management of nurseries for plant propagation. Around 670.000
indigenous plants were propagated through cutting and air layering methods in 6
locations, large numbers of saplings still have to be transplanted;
d) Establishment of demonstration trials in more than 100 locations in different areas of
Pakistan in order to evaluate the adaptability and productivity of different cultivars;
e) Developing and recording of complete data/information of 500 maps/polygons of 500
orchards planted under the project on Google Earth;
f) Execution of several practical trainings (air layering techniques and management, olive
production technology, oil extraction, nursery establishment, cultivar propagation
technologies, integrated pest management in olive, scope and economics of olive, olive
post-harvest technology and oil extraction processing, etc.). More of 500 people
benefitted from the capacity building program;
g) Confirmation that the olive oil produced in Pakistan is in line with international
standards, according to chemical analysis locally done;
h) According to a survey performed in May 2016 on 80 orchards visited (around 900 ha,
with a total number of plants of around 87.000), the rate of success was 80%.
It must be underlined that recently the Government of Pakistan has approved an important
national project Promotion of Olive Cultivation on Commercial Scale in Pakistan, executed by
PARC, through Provincial Governments with a total budget around € 20 Millions. The project
will have a duration of five years (2014-2019) and is expected r to plant 20.000 ha of olive
trees. Until now, the main achievements of the project are:
a) The plantation of 1.165 hectares of olive trees;
b) The propagation of 3,5 Millions plants; and
c) The establishment of drip irrigation systems on 11 hectares.

V The reviewed SWOT analysis
In the following table is shown a SWOT analysis deriving from the information gathered by
the evaluation mission:
STRENGTHS WEAKNESSES
I. Suitable areas for olive oil production are
vast (over 15 Million hectares).
II. Possibility to increase the productivity
(yield/ha).
III. Increasing public/private investments
addressed to the sector (from growing to
consumption).
IV. Governmental support to Olive-oil supply
and value chain
V. Some capacity and infrastructure to produce
seedlings already existing.
VI. Already established plantations once in
production could cover the current
consumption of olive oil in Pakistan.
VII. Processing capacity is exceeding present
production, if it not considers the geographic
distribution of mills facilities.
I. Few reliable local data, not yet organized and
systematized on cultivation techniques,
cultivars performances, olive oil costs of
production.
II. Insufficient know-how and inadequate
awareness concerning olive oil
marketing/selling dynamics.
III. No functional certification system
concerning plants propagation complying
with international standards.
IV. Lack of key legislation concerning
traceability, labelling, regulatory framework
on quality requirements and food safety,
development policy, production and
marketing regulations (an Olive Oil Act).
OPPORTUNITIES THREATS
I. Market niche in expansion / positive trend of
demand of olive oil*.
II. Medium and long-term support from
international donors.
III. Rural development policy options for the
introduction of the olive oil supply and value
chain in some of the poorest Districts of the
country.
IV. Waste/marginal lands (more than 7 million
hectares) where cash crops cannot be
cultivated could be successfully planted with
olive trees.
I. Lack of experience in dynamic growers’
associations
II. The domestic crushing and distribution
sectors finds more attractive to import edible
oil rather than crushing/distributing locally
produced oil seeds.
III. In 2005 the government facilitated imports
by eliminating tariffs and duties on all
oilseeds.
*It is estimated that the edible oil requirement will increase by 6% to 8% per annum in next
ten years.

VI Completeness, adequacy and relevance of information on cultivation
techniques, production costs, organoleptic characteristics of the final
product and the related market prices in order to identify the intervention
guidelines of the Italian Cooperation programs on olive oil supply and
value chain (PIDSA, PPAF and TVET)
VI – i Cultivation techniques
It has to be noted that the available information produced by past and on-going projects,
documents and reports is not complete, well organized and systematized and, sometimes,
contradictory.
It is not available a complete, clear, local handbook with technical production
specifications, neither for plant propagation/nursery, management/mother orchards nor
for olive plantation.
Concerning soil and climate requirements, the information gathered in 2015, using a
Geographic Information System analysis, identified the areas suitable for the olive plantation
based on topography (elevation, slope), weather conditions (average monthly, min/max
temperatures, chilling hours, annual rainfall) and land cover.
The data reveal that Pakistan has around 15 Million hectares (150.000 km2
) suitable for olive
trees cultivation.
Therefore, finding a suitable environment for olive trees cultivation does not represent a major
constraint for the development and production of olive oil in Pakistan.
The current surface cultivated with olive trees is between 2.500 and 3.000 hectares. Around
90% of planted trees are still too young to produce olives, as they have been planted between
2013 and 2015.
Currently, the domestic production of olive oil is around 6 tons per year, originated from around
75 tons of olives, applying a conversion rate around 8% (according to the latest survey,
published by PERI, PARC and IAO in April 2016, the current olive oil extraction rate is
esteemed to be around 8%, with a great potential to grow up to 15%).
The known cultivars for oil production introduced in Pakistan are: Arbequina, Arbosana,
Barnea (dual-purpose cultivar), Biancolilla, Coratina, Frantoio, Gemlik, Leccino, Koroneiki,
Moraiolo, Pendolino.
The known cultivars for table olives introduced in Pakistan are: Ascolana tenera, Manzanilla,
Kalamata, Nocellara del Belice, Sevillana, Uslu.
It is possible that other cultivars have been introduced and may emerge from fieldwork and
literature.
Self-pollinated varieties are encouraged.

Tree planting densities range from 100 (mixed - marginal olive orchards) up to 400 (intensive
orchards, commercial-size farms) per hectare.
It is estimated that around 275 plants/hectare could be an adequate investment for small
holders, in districts with good production potential.
The estimated average production of olives per plant (from the 6th
year since the transplant –
maturity fruiting) fluctuates from 12 kg up to 20 kg.
Therefore, the average production of olives per hectare ranges from 1.200 kg up to 8.000 kg,
with an estimated range of olive oil extracted from 96 kg up to 1200 kg, applying a range of
extraction rate between 8% and 15%.
In districts with good production potential, for small holders, it appears reasonable/consistent
to obtain an average production of olives around 15 kg/plant and, applying an average
extraction rate of around 12%, an average production of olive oil equal to 1,80 kg/plant. It
means, with an investment of 275 plants per hectare, a production of 4.125 kg/ha of olives and
495 kg/ha of oil.
These estimates are based on a conservative approach/scenario (low productivity and low
conversion rate), with a potential margin of growth.
Although Olive is a hardy tree, it requires land preparation, timely irrigation (drip irrigation
system is the most adequate), fertilizers, pests and diseases management.
According to latest publication issued by PERI, PARC and IAO in April 2016 and “Road Map
for PPAF to promote olive value chain in Pakistan” report written by and independent olive oil
expert on June 2016 and submitted to PPAF, the main constrains of olive cultivation are the
lack/shortage of water and accordingly high irrigation water cost, followed by non-
compatibility of plant varieties with the local climate/environment, difficulties in process of
extraction and long distance between farm and currently installed mills plants/oil extraction
facilities, resulting in an increase of transportation cost and post-harvest losses.
According to the market analysis and evaluation of olive oil supply and value chain publication
issued by IAO – MAE in 2008, it has been estimated a requirement of labour/manpower for
Mixed
(marginal orchards)
Smallholders
(in suitable and high
potential areas)
Intensive orchards
(commercial-sized
farms)
Density (trees/ha) 100 275 400
Olives production per tree (kg/tree) 12 15 20
Olives total production (kg/ha) 1200 4125 8000
Oil extraction rate (%) 8% 12% 15%
Oil total production (Kg/ha) 96 495 1200
Avarage olive oil price at farm gate (€/kg)* 2,38 2,38 2,38
Oil total gross marketable production (€/ha) 228 1178 2856
* avarage 2015 import price

cultivating 1 hectare of olive equal to around 225 hours/year/ha. This figure seems
consistent with the local reality for intensive orchards/commercial-sized farms, while the
estimated requirement in terms of labour/manpower for mixed - marginal oil orchards is
around 140 hours/year/ha.
VI – ii Production costs
Again, the available information produced by past and on-going projects’ documents and
reports is not complete, properly organized and systematized and, sometimes, contradictory.
A standard productions cost specifications for local conditions field handbook is not
available.
However, based of available information, the evaluation mission estimated that, at
maturity/fruiting time, an average cost of olive production between 250 €/ha (0,20 € per kg
of olives) for mixed - marginal olive orchards and 980 €/ha (0,12 € per kg of olives) for
intensive olive orchards/commercial-sized farms.
In districts with good production potential, for small holders it appears reasonable/consistent
an average olive cost of production of around 590 €/ha (0,14 € per kg of olives).
Concerning the processing cost, it was estimated by the assessment published by IAO – MAE
in 2008 a cost equal to 0,6 € per kg of oil, that seems coherent with local conditions and
comparable with processing costs in Italy (around 0,7 – 0,9 € per kg of oil).
The transportation cost was estimated by the evaluators as equal to 0,03 € per kg of olives.
Finally, the total average cost of production of 1 hectare of olive (including processing and
transportation costs) rises from 330 €/ha for mixed marginal olive orchards up to 2.050 €/ha
for intensive olive orchards.
The total estimated cost of production incurred by small holders in suitable environment is
equal to 990 €/ha.
The analysis showed that for intensive orchards (commercial sized - specialized farms) the cost
for producing 1 kg of olive is equal to 0,26 €/kg, corresponding to a cost of 1,58 €/kg for
producing 1 kg of oil (including family labour).
Mixed marginal orchards (farms with low level of specialization and mechanization, late
precocity) produce 1 kg of olive with a cost equal to 0,28 €/kg, equivalent to a cost of 3,46
€/kg for producing 1 kg of oil.
In districts with suitable and favorable environment, the estimated small holders cost of
production of 1 kg of olive amounts to 0,24 €/kg, equivalent to a cost of 2,00 €/kg for producing
1 kg of oil.
In the following chart it is shown the comparison between revenues and total production costs
per kg of olive oil produced, and the average international market price of imported olive oil:

In the following charts they are shown the comparison between revenues and total production
costs per hectare:
2,38 2,54
1,19
0,81
0,32
0,21
0,17
0,60
0,60
0,60
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
avarage 2015
importing price
(€/Kg)
Mixed marginal
orchards
Smallholders (in
suitable and high
potential areas)
Intensive
orchards
(commercial-sized
farms)
€
processing cost
transportation cost
production cost
revenue per kg of oil
228
1178
2856
332
989
2042
0
500
1000
1500
2000
2500
3000
Mixed marginal orchards Smallholders (in suitable
and high potential areas)
Intensive orchards
(commercial-sized farms)
€
gross marketable production total production costs

In the following charts are shown the comparisons of Gross marketable production and, details
of Production, Transportation and Processing costs for the 3 types of exploitations identified:
According to the latest publication on market analysis for value chain and olive oil
consumption in Pakistan issued by PERI, PARC and IAO in April 2016, the major costs for
cultivating olive trees is the irrigation, with an impact on the total cost of production between
30% - 40%.
228 244
31
57
0
50
100
150
200
250
300
350
€
Mixed (marginalorchards)
gross marketable production production cost transportation cost processing cost
1178
588
105
296
0
200
400
600
800
1000
1200
1400
€
Smallholders (in suitable and high potential areas)
2856
976
204
862
0
500
1000
1500
2000
2500
3000
€
Intensiveorchards(commercial-sized farms)

VI – iii Organoleptic characteristics of olive oil
Concerning olive oil organoleptic chemical qualities, the information gathered do not allow the
evaluators to assess whether the characteristic of olive oil produced in Pakistan are comparable
and reached the same standards of the olive oil originating from the main exporters (Spain,
Italy and Turkey), even if in the project Promotion of Olive cultivation on commercial scale in
Pakistan is stated that “the olive oil produced in Pakistan was got analyzed and it was found at
par with international standards”.
In bibliography was found a paper 6 concerning the quality of oil extracted from wild olives
originating from Pakistan: the fruits from wild olive trees Olea ferruginea Royle, locally
known as Kahu, were collected from different locations in Pakistan (i.e. Bhara Kahu, Kotli
Sattian and Dir Swat); whereas a reference sample of a local variety (Zaitoon II) Olea
europaea. was collected from Barani Agricultural Research Institute, Chakwal (BARIC) for
comparison.
The milling and analyses were done after 3 days of storage in the labs of the University Institute
of Biochemistry and Biotechnology PMAS, Arid Agriculture University Rawalpindi.
The results were showing a potentially interesting produce, although “…Particular attention
should be given to the enhancement of quality with regard to the optimal ripening degree of
olives and storage conditions before milling: the application of these practices should avoid
the sensory defects and allow for better control of hydrolytic and oxidative modifications…”.
The fruit of this tree is currently not being utilized for any useful purpose.
VI – iv Market prices
The currently available olive-oil supply and value chain assessments need to be updated and
completed with more accurate details on storage, transportation, processing and marketing, in
order to accurately identify the possible trend of selling prices at farm gate and at retail level,
the profit margins, the price structure and cost drivers for the involved stakeholders (input
suppliers, nursery developers, producers, transporters, traders, wholesalers, retailers,
processors, exporters, etc.). Terms of Reference for agribusiness supply and value chain are
presented in Annex 3.
With reference to the market price dynamics, it is worth underlining that the current local
production of olive oil is around 6 tons per year and, according to the latest survey, published
by PERI, PARC and IAO in April 2016, all the farmers who have sold olive oil were not
satisfied with the retail sale price (between 9 and 10 €/kg).
Their point of view is that olive cultivation imposes high costs to be incurred in the first five
years without producing any income, high irrigation water cost, high cost of transportation and
post-harvested losses resulting in low extraction rate and low oil quality.
6
Characterization of olive oil obtained from wild olive trees (Olea ferruginea Royle) in Pakistan. Pervez Anwar,
Alessandra Bendini, Muhammad Gulfraz, Rahmatullah Qureshi, Enrico Valli, Giuseppe Di Lecce, S.M. Saqlan
Naqvi, Tullia Gallina Toschi; Food Research International, Volume 54, Issue 2, December 2013, Pages 1965–
1971.

About 70% of farmers have used their extracted olive oil for self-consumption.
The import of olive oil is about 1.300 tons per year with a cost of € 3,1 million (0,16% of edible
oil import bill), equivalent to 2,38 € per kg of imported olive oil.
Assuming 2,38 € per kg of imported olive oil, it would represent the sale price at the farm gate
unchangeable by farmers.
It seems adequate to conclude that:
1) Commercial sized - specialized farms could produce net profit from the plantation;
2) Small holder target group is also able to produce in a profitable way (a little higher
than its break-even point) even if with a reduced net profitability margin;
3) For mixed/marginal orchards, the investment seems not to be
profitable/economically viable.
For the 2 latter target groups, the evaluators’ opinion is that there is a potential to
increase the gross marketable production, enhancing the yield per hectare and the
extraction rate, through an improvement of cultural and processing techniques.
The current olive oil market in Pakistan is very limited and almost insignificant compared to
the whole size of the edible oils market.
Orchards are not yet in production and there are very few industrial mill facilities.
The entire supply and value chain is mainly represented by importers, distributers and retailers.
The olive oil is utilized not only for cooking, but also for cosmetic and health purposes.
Even if Pakistan people have changed their diet preferences from animal fats to vegetable fats
(vegetable ghee) and even to healthier products (canola and sunflower oils), there is lack of
awareness concerning the difference between extra virgin olive oil, olive oil and pomace oil.
The major reason for not using olive oil for a large part of the Pakistani population seems to be
the high retail price, compared to other edible oils and vegetable ghee.
The market segment, to which the national olive production could focus, might be the richest
part of the Pakistani population (1% of the whole population of Pakistan).
This segment seems not to be saturated, yet, representing therefore an opportunity of growth.
According to the information collected, interviewing a team of three Italian olive oil sector
experts during their mission in Pakistan for the AICS, and the information reported in the
survey “Edible Oils in Pakistan” published by IAO – MAE in 2008, it has been estimated that

during the next years there will be an increase of domestic demand/consumption of olive oil
from 1300 tons up to at least 2500 tons/year.
This demand increase must be matched by raising the local production and through an
aggressive advertising campaign supporting the national production of olive oil.
In conclusion, a sustainable and profitable olive oil business could be developed in Pakistan
provided that the domestic olive oil production will enter into the market priced at cost no
higher than the current and future international imported oil price (currently 2,38 €/kg of olive
oil).
Great care must be given to ensure that the quality of domestic olive oil be superior, if compared
to the imported one. Therefore, some stricter regulations concerning quality oil production
must be put in place and enforced in order to allow the local farmers to fairly compete with
imported products.
According to “Edible oils in Pakistan - An overview with a focus on olive oil” report published
by IAO – MAE and statistics issued by FAO and Government of Pakistan Federal Bureau of
Statistics, the main edible oil imported in Pakistan is palm oil (kg 1,9 billion, representing the
90% of edible oils imported in 2010 – 2011, latest data available), while the main oilseed crop
domestically cultivated is cotton. Its production represents around 50% of locally produced
oilseeds and it is utilized, together with rapeseed, mainly for vegetable ghee production.
For edible oil purposes, 2 main kinds of oils were domestically produced: sunflower and canola
oils, while the cultivation of palm and soybean oils productions are not material.
The cost for importing 1 kg of palm oil is 0,76 €/kg, while the cost for producing or importing
1 kg of sunflower and/or canola oils are quite comparable and around 0,90 €/kg. Even less
expensive appears the cost of production of 1 kg of vegetable ghee (0,50 €/kg).
Finally, the average retail price of palm, sunflower and canola oils rises to 1,3 €/kg, while
the average retail price of vegetable ghee amounts to 1,10 €/kg. The olive oil is sold between
9 and 10 €/kg.

In the following chart, the comparisons between importing and at retail prices for different
edible oils can be appreciated:
Import prices
Retail prices
In consideration of what previously shown and focusing on retail selling prices, the evaluation
mission believe that domestic olive oil production can represent an economically viable
alternative only to replace the imported olive oil, but cannot represent a substitute product for
the other kinds of cheaper imported edible oils and a mean to significantly reduce the edible
oil import bill.
0,50
0,76
0,90
0,90
2,38
0,00 0,50 1,00 1,50 2,00 2,50
vegetable ghee production cost
palm oil importing price
sunflower oil importing/production price
canola oil importing/production price
olive oil importing price
€/kg
1,10
1,30
9,00
0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00
vegetable ghee price at retail stage
average edible oils price at retail stage
olive oil price at retail stage
€/kg

VII Systematization of lessons learned on previous experiences from the
Olive Oil projects financed by PIDSA
What is emerging from the current review is that there is no clear information or reports showing
previous impact evaluations or assessments.
The economics of the of olive oil supply and value chain were often incomplete, inconsistent
and mostly deriving from projections and extrapolation based on information deriving from
different context. In this conditions the risk of overall too optimistic figures is high.
Being a relatively new sector for Pakistan a certain level of risk should be taken in account.
However, the need to have a realistic perspective and avoid excessive expectations is considered
a priority.
A good example of the risk of not showing information in the right perspective is the size of the
market of edible oils and the minimal percentage that olive oil play in the whole picture:
Imported edible oils 2.150.000 tons
Imported olive oil 1.300 tons
Current known olive oil production 6 tons
In spite of this, the evaluation mission considers the olive-oil value chain worth to investing in
and stresses the need of reliable figures deriving from field measures and not only from
projections, where too many variables are subject to influence the results.
Detailed recommendations are presented in Section XII.
According to information shown in several Pakistan Agricultural Research Council (PARC)
reports (2013 - 3rd semester report, 2014 - 5th semester report and 2015 - 7th semester report)
in the Promotion of Olive Cultivation for Economic Development and Poverty Alleviation
project and Road Map for PPAF to promote olive value chain in Pakistan report, written by an
independent olive oil expert on June 2016 and submitted to PPAF, the main issues observed
during the field visit to check the performance and adaptability of trials, nursery production
and plantation on farm lands in Baluchistan, Khyber Pakhtunkhwa and FATA were:
a. Free grazing damaged the olive trees;
b. Insufficient supply of certified/registered, high quality, disease free seedlings;
c. Pits prepared for olive plants were too small (the roots could not grow properly and the
plants remained weak);
d. Absence of tutors, causing trunks bent;
e. Non application of fertilizers, generating weak plants;

f. Lack of proper pests control (pre-harvest losses due to pests were considered one of the
main constrains for low productivity of olive orchards);
g. Improper pruning practices, causing unbalanced growing;
h. Non adequate irrigation system utilized (flood system) which damaged the plants because
excess of water;
i. Mortality rate mainly due to lack of irrigation (shortage of irrigation water);
j. Improper harvesting techniques and post-harvest handling;
k. Difficult access to processing facilities (mills were not close to growers);
l. Unavailability of proper bottles for oil storage.
All the surveys and assessments, based on the field visits, show that, even if there is a lack of
knowledge and limited experience in the cultivation of olives and in the milling activities, an
improvement of productivity and oil quality could be reached.
Under a strictly production point of view, these are the keys, very high priorities to convince
the small farming olive growers to remain active in the sector and a precondition for having
olive production providing a consistent and profitable additional source of income.
In the following sections the evaluation mission tried to describe a comprehensive, holistic and
strategic approach that should be adopted for a correct development of the olive oil sector,
involving all the stakeholders.
VII – i Agronomic and technical perspective
Under a strictly agronomic and technical point of view, the evaluators would like to emphasize
some lessons and recommendations learned from the past and on-going projects that should be
taken in account in future development of the olive oil sector in Pakistan:
a. To multiply high quality seedlings is needed the establishment of mother plants
orchards/nurseries, producing plants following scientific protocols and according to
international standards;
b. Start the process of registration and certification of cultivars;
c. It is needed the identification of unknown fruiting olive cultivars through DNA fingerprint,
this in order to assess the best suitable and productive varieties to be propagated;
d. For high elevation areas (from 1500-1800 m asl) the most suitable olive cultivars seem to
be Arbequina, Arbosana and Coratina;
e. For low elevation areas (from 800-1400 m asl) the cultivars Frantoio, Gemlik, Koroneiki,
Leccino and Pendolino appear more suitable and recommended;

f. The use of self-pollinating cultivars seems more effective compared to plantations
requiring pollinators;
g. The practice of top working on wild olive trees seems feasible only if it is carried out on
private land and properly managed through pruning and nutrient supply;
h. Fencing is recommended in case of free grazing livestock and small ruminants damaging
the olive trees;
i. Intercropping could be a viable solution during the first 4 – 5 years of plantation, when the
trees are too young to produce olives;
j. The installation of drip irrigation systems for an efficient use of water in areas with acute
water shortage is a must to assure a sustainable and economically viable cultivation;
k. The provision and installation of solar panels for irrigation systems (drip or tube-wells)
could represent a solution to persistent grid power cuts that cause water shortages at critical
growth stages;
l. Harvesting at optimum maturity stage in order to improve oil quality and quantity is
required.
VII – ii Processing/milling facilities perspective
With reference to the processing/milling facilities, the following points have to be highlighted:
a. Farmers are concerned about the processing of the olives, as the olive plants are
approaching the production stage;
b. The distance between plantations and mills facilities seem to be one of the main
constrain to be solved to increase the oil quality. Transport to the oil mill has to be done
in the shortest possible time (ideally within 4 hours after harvest), to avoid the
beginning of the oxidation processes. Therefore, mills must be located close to the
orchards; olives have to be crushed within 1 day from harvest, if properly stored;
c. Existing plantations (between 2.500 and 3.000 hectares) could produce, over next five
years, 10.000 tons/year of olives that need to be crushed in very short time;
d. The current milling capacity is totally insufficient to crush the reported expected
quantities of olives within the correct delay;
e. Even if the previous projects provided some processing facilities of various capacity (1
commercial oil mill - 500 kg/hour and 8 smaller ones), establishments of on-farm olive
oil extraction units and mobile extraction units must be foreseen;
f. Installation of table olive processing units must be expected;

g. A public/private partnership scheme of extraction units’ ownership and management
must be analysed and implemented.
VII – iii Capacity building perspective
The past experiences in olive cultivation show that:
a. The knowledge concerning olive oil propagation, cultivation, processing and marketing
techniques are still inadequate. Capacity building programmes are needed trough field
training sessions, adopting the “learning by doing” methodology, establishing a small
network of “model successful farms – pilot sites”, focusing on:
- Correct growing procedures;
- Organisation, management and record keeping 7;
- Improved understanding of the market requirements (both at consumer and
regulations level);
- Dissemination of the improved practices,
b. To guarantee a high level of olive production per tree, it is recommended that regular
trainings to famers are provided by field agricultural extension officers (updating and
reminding technical issues);
c. Provide training on oil mill maintenance and oil mill technicians;
d. It is advisable to supply tailor made training programs for all decision-makers of the
olive oil value chain: from Ministry's level to Federals, Provincials and Districts levels;
e. Consider the creation of a Made in Italy technical assistance facility, in close connection
with MNFS&R and NARC/PARC local staff, to build capacities at all stages of the
olive oil Supply and Value chain. Involving Italian expertise in Research &
development, in producing, processing and marketing, particularly for certified, organic
and ultra-premium extra virgin olive oil.
VII – iv Market perspective
The current Pakistani olive oil and table olives markets are quite small. A great effort should
be done in analysing, evaluating and setting up national guidelines, in order to pilot the sector
toward a sustainable and profitable condition.
The domestic market will compete against the most experienced European countries, where
customers are more exigent regarding quality.
Some points must be highlighted, as follows:
a. The pricing aspects will have to be carefully studied. Resources need to be allocated,
in order to analyse in depth, the aspects (branding, promotion, advertising) that play an
essential role at retailer/consumer level. A monitoring system of the economics of the
7 Alphabetisation could be an issue in some cases.

value chain must be established and implemented, including the involvement of
international and national centres of excellence in commercial Research &
Development;
b. According to the market analysis and evaluation of the olive oil Supply and Value
chain, document issued by IAO – MAE in 2008, the share of the added value recognised
to distributors is around 77%, while the rest of the benefits goes to the supply chain
outside Pakistan;
The domestic olive oil value chain must consider that distributors are likely to buy a
quota of olive oil from national growers if the quality and price is equivalent to the one
of imported olive oil.
This means that the quota of added value that remains in the hands of growers (23%)
must be sufficient to cover all the production costs (including transportation and
processing) and to generate some minimum net profit to farmers;
c. Trading between growers and millers should occur without middlemen in order to avoid
useless intermediaries’ costs along the supply chain. Growers must be able to deal
directly with the millers and with the distributors, creating a short value chain;
d. If the private sector is investing in the establishment of commercial size plantations, the
promotion and diffusion of olive oil cultivation can receive a boost. Large farms
owners could create their own processing plants for oil extraction and product
development. Large farms could provide employment to people in the area and
probably favouring the availability of services concerning milling and trade to small
holder farmers, from purchase of produced olives to milling for a fee;
e. A sustainable alternative, with favourable effects on food security and/or additional
sources of income for small holders in marginal areas, could be to use part of the olive
harvest to produce table olives or pickles. Small-scale/house level production of table
olives for local market requires less investment and is technologically less intensive
than olive oil production 8. Furthermore, there is the opportunity to involve women in
processing olives for sale at home.
VII – v Political perspective
The Pakistan Government current policy concerning the olive oil sector is mainly focusing on:
- Promotion of olives plantation on marginal lands in order to replace more demanding
crops in areas affected by limited or overexploited natural resources;
- Insuring food security for small holders farmers, through olive oil/table olives production
for self-consumption;
- Enhancing poverty alleviation through the production of olive oil/table olives as an
additional source of income;
- Reducing the expenditure for edible oil imports.
8 Water, salt and proper packaging are anyway needed.

To reach such ambitious objectives, the olive sector must continue to benefit of the strong
commitment by the Government.
The Italian Agency for Development Cooperation requested the evaluation mission to provide
information on the olive-oil value chain and the same information could be useful in
negotiations with the Pakistan Government.
In the following points are presented the main findings:
a. It was noticed a lack of coordination between all the stakeholders involved in the
olive oil development sector that is increasingly complex, it includes Central and
Provincial Governments, private sector, bilateral cooperation.
The lack of governance of so many investments and projects could lead to:
- An unclear overall sector logic;
- A loss of the strategic vision
- A piecemeal approach, resulting in a waste of time and resources in activities that can
be overlapping or even pull in opposite directions.
b. It is needed the establishment of a single steering instrument of governance and
linkage with institutions for the development of Pakistan olive oil sector, composed by
all the stakeholders and with all the competencies.
c. The main gaps in the olive oil supply and value chain to be addressed are the Legal
framework and regulations concerning labelling, origin, traceability, varieties
propagation, registration and certification, quality and food safety issues, by-products
management, marketing and commercialization.
d. It is strongly recommended the creation of 2 Olive-Oil Units within the Ministry of
Agriculture and/or Ministry of Plan:
- The first could be responsible for legal, regulatory and international standards
compliance issues, in charge of drafting the key legislation and normative
framework (Olive Act);
- The second could be responsible for all technical and agronomic issues
(production related).
e. In the light of the international and domestic market dynamics, the strategic vision
should be pondered. The olive-oil sector could be developed by distinguishing two
different targets and approaches:
 Commodity development approach. To be implemented in the most suitable areas
for olive cultivation, where it is possible to find skilled farmers with business
abilities, pioneering spirit, good knowledge of farm management, availability of
capital and land. These agricultural entrepreneurs could represent agro-food
operators driving the industry and producing for urban markets in order to compete
with imported olive oil;

 Rural development approach. More suitable to marginal and less developed areas
where olive oil and table olives are not consumed because of high costs and not
affordable by the smallholders. The aim of this approach is to improve food
security and provide additional source of income among rural population in poor
areas. The smallholders could address their production of olive oil and table olives
to local markets and self-consumption.
The two approaches can be partially conflicting; however, one does not exclude the
other. It is advisable to start aiming at setting up a system where success is clear and
therefore attract other stakeholders.
f. With the objectives of enhancing poverty alleviation efforts amid smallholders, giving
a further boost to the olive oil production and making the sector sustainable and
economically viable on the long-term, the Pakistan Government is recommended to
consider the opportunity of providing smallholders farming with subsidies, this in order
to:
i. Facilitate the supply of agricultural inputs;
ii. Favour the purchase of drip irrigation systems;
iii. Allow the acquisition of solar panels to feed the irrigation systems;
iv. Stabilise and control oil-milling costs.
g. Finally, in order to create the conditions for propagating certified seedling, according
to international standards and to avoid the need of importing certified seedling from
abroad, the Pakistan Government is strongly recommended to become member of the
International Olive Council, (IOC), an intergovernmental institution specialized in
olive oil and table olives trade commodities in the world.
VIII The survey’s results concerning the draft of the action plan focused
on training needs of all the stakeholders of the olive oil sector,
including, but not limited, the quality aspects of production and 4ps
marketing mix (product, price, place and promotion)
At the time of the evaluation mission the survey related to training needs was not available.
The analysis of the training needs of all the stakeholders in the olive oil sector have been
presented in Section VII – iii Capacity building.
IX Consistency of Italian public and/or private partners to be involved
in specific bilateral cooperation programs
Two projects related to olive oil supply and value chains have as implementing partners the
IAO (Istituto Agronomico per l’Oltremare) a technical body linked to the Italian Ministry of
Foreign Affairs, which funded both projects.

The project Promotion of the Production and Marketing of Olive Oil implemented in 2007-
2009, funded by the Italian cooperation had a total budget of 0,8 M €.
The regional project AFNEPAK, had a total budget of 2,4 M €. The Pakistan component is
currently suspended.
The IAO was also running 2 successive projects in Swat Valley, on fruit selection and
marketing. The outcomes of the 2 projects, objects of a specific evaluation exercise by the same
Evaluation team in 06-07/2016 are not particularly impressive, with several components not
achieving the expected results.
Other public and private partners could be:
- Università degli Studi della Tuscia in Viterbo, is already involved in projects on the olive
oil value chain. It is a possible public partner to be involved in the future bilateral
cooperation programs, because its background and specific previous experiences in olive
oil researches and development in Italy, Nepal and Pakistan.
- ISMEA (Istituto di Servizi per il Mercato Agricolo Alimentare), public body within the
Italian Ministry of Agricultural, Food and Forestry Policies,
- Coldiretti, trade union organization. With a million and a half members, it is the main
organization of farmers at national and European level.
- Genagricola SpA, an agricultural-food holding owned by Gruppo Generali Assicurazioni
- Development Solutions Associates (DSA) Center. Research think-tank, registered as an
NGO in Albania in 2006 with experience in chain analysis of olive oil and table olives.
X The solidity and reliability of the key institution/bodies identified as
agents of development of olive oil sector in Pakistan, with particular
attention to the following: i) entity that might be involved in public
- private partnerships, ii) initiatives that may represent an added
value for olive oil supply and value chain to be eventually co-
founded the Italian government and iii) initiatives that can increase
the profitability and sustainability of on-going public investment
According to the Promotion of Olive Cultivation on Commercial Scale in Pakistan, a national
project recently approved by the Government of Pakistan, Islamabad NARC/PARC play the
leading role in the development of the supply and value chain.
The Agricultural Research Institutes (ARI) of Barani and Tarnab have been declared centres
of excellence for olive.
Other main agents of development already identified by the project are:
- Arid Agriculture University (Rawalpindi);
- National Horticulture and Tea Research Centre (Shinkiari);
- Agricultural Research Institute of Sariab (Quetta);

- Baluchistan Agricultural Research & Development Centre;
- Agriculture Extension Department of Azad Jammu & Kashmir.
The evaluators did not have the possibility and time to meet staffs of the said
Institutions/Bodies (located in the areas suitable for olive trees growth in several Provinces),
therefore do not have enough information to express an opinion on them.
The visits and meetings held at PARC in Islamabad were showing an institution with a good
potential. The involvement of National bodies is absolutely necessary, and the experience
show that National structures are often sufficiently staffed, but are lacking funds to set up
research activities or run projects independently.
International institutions with the needed capacities and know-how have conversely higher
running costs; require international staff deployment (the security situation in Pakistan is still
an issue), more difficulties in field movement and work.
A compromise, where International reliable institutions, with a solid background and
experience in International Cooperation - and showing an impeccable delivery record – have
to be selected.
The initiatives that may represent an added value for olive oil supply and value chain and can
increase the profitability and sustainability of on-going public investment, to be eventually co-
founded by the Italian Government, have been illustrated in Section VI.
A point that need to be clear is that periodic, short term missions of International
institutions can work if the project document is robust, clear, with a Logical framework
that specifies what has to be done and how, still allowing flexibility (Adaptive management
approach) and clearly provides for internal monitoring and external evaluation.
XI The results, in terms of participation and awareness, of the
attendance of three seminars/workshops in which it has been
illustrated the guidelines for the development of the olive oil
industry and the groundwork for drawing up a proposal of a
strategic national plan for the development of olive oil sector
During their mission in Pakistan on behalf of the AICS, the Italian experts, Mr Luciano Leonetti
and Mr Stefano Valle, outlined and showed to Ministry of Planning, Development and Reform,
PERI and PIDSA officers some presentations on the following two main subjects:
- Scaling up pilot initiatives into a National Olive Plan
• Prospects for Italian contribution to development of the extended supply chain;
• Extended supply chain analysis - Policy brief;
- Situation and Prospect for the Olive Supply Chain
• Priority actions for intervention and proposed Italian contribution;

• PIDSA and other related Italian facilities and projects;
• TVET in the wider intervention framework.
The evaluation mission did not have information concerning participation and awareness of the
audience. However, the level of Pakistani staff attending the seminars was high, showing once
more the interest in the olive value chain by the Government.
XII Conclusions and recommendations
XII – i Conclusions
The analysis of the available documentation and interviews are leading to the following
conclusions. For the edible oil market:
a. The edible oil trade and consumption in Pakistan is covered by:
i. Import of several types of edible oils (palm, soya bean, sunflower and other edible
oils);
ii. National production;
b. The import of edible oils is 95 % low-priced palm oil, which is in part further processed,
hydrogenated, and marketed as vegetable ghee;
c. The national production of edible oil is mainly constituted by cottonseed oil, also a low
price commodity;
d. Desi ghee and butter (from buffaloes, cows) also satisfy part of the edible fats national
market. The country production is comparable in size to the production of edible oils
(0,68 Million tons ghee, 0,91 Million tons edible oils). Around 70% is for self-
consumption by “subsistence” and “nearly subsistence” farming rural population;
e. Currently, the internal market of edible oils is largely covered by products that have a
retail price of 1/6 or less compared to imported olive oil;
f. National production of olive oil is difficult to assess because of absence of monitoring
systems set up by projects in the past and also because of logistical reasons: dispersion
of planted sites, distances, accessibility, leading to an overall and high cost of
information collection;
g. Currently commercialised olive oil is almost totally imported. Although some
quantities could be small-scale productions for self-consumption and remain
“invisible” in statistics, the current estimates for national production report 5-6 t/year;
h. The internal market of olive oil is currently satisfied by the imports of 1 300 t/year and
has a potential absorption of 2 500 t/year (0,09 % of total edible oils consumption);
i. Experts estimates that the internal market of olive oil, in the next future, could be
covered at around 70 % by national production, around 1 800 t/year; while the

remaining 30 % would likely remain a niche market, with very high quality/high price
imported oil;
j. Although the marketed quantities of olive oil appear to be small, the value and market
price is several times higher than other edible oils;
k. A careful measurements campaign and an assessment of production costs and margin,
generating real field conditions figures are strongly needed. It is not advisable to rely
on estimates, projections; ranges produced starting from published data and
extrapolations from other areas;
l. Estimates done during this evaluation, conservative and more realistic than figures
often found, show that a more careful approach to new projects procedures and
communication should be adopted. Olive oil is a mature sector in world economy
where Pakistan is entering and still tuning the several stages of the value chain. It must
be clear that planning should be done on long-term basis and benchmarks to be reached
could help the whole process;
m. The expectations grew enormously, and the risk of deception has to be avoided,
clarifying the range of interventions and which reasonable objectives can be achieved;
n. One of the major points to support the olive tree value chain is that it is the only edible
oil producing species that can grow on marginal lands, not competing for land with
other cash crops in Pakistan;
o. The emerging, identified technical options for planted olive tree products are:
1. Mixed marginal orchards. These are small scale production units on marginal
lands. Olives are for direct processing as table olives/pickles/oil and self-
consumption or local market. It encompasses the poorest segments of the rural
population. Costs per kg of product are higher because of the small scale. The
investment seems not to be profitable;
2. Smallholder and family producers. Medium/small scale production of olive oil
for self-consumption and/or sale, if logistical infrastructure is there, such as
grinding mills, roads, transportation, etc. Production costs are midway between the
marginal orchards and the commercial farms. The investment seems able to
produce some net profit;
3. Large scale commercial estates. Such farms are to be established, although the
process started. The olive oil production aiming at the internal market first and
even export in the sub region if costs are competitive and other conditions arise.
Production costs are the lowest, compared to the other types identified. There is a
probability to produce net margin from the investment;
p. Wild olive trees forests options are:
i. Grafting/top working to produce commercial quality olives (then, options are the
same as planted olive trees);
ii. Harvest of wild olives for processing/oil extraction for human
consumption/cosmetics production;
iii. Soil protection, erosion control, carving wood, landscape value.

The analysis of recent projects, concluded or on-going, implemented up to now in Pakistan
on the olive value chain, lead to the following conclusions:
a. The olive value chain, although not the most difficult in tree products, is anyway
requiring the availability of information, knowledge, practical skills and considerable
overall attention to details in planning and implementation, this, in order to became
viable and explicate the potential that has been initially recognised in it;
b. This potential has led in the past to several projects and investments, at National,
Provincial and International co-operation level;
c. New funds will be invested in support to this value chain, again, at National, Provincial
and International co-operation level (examples: the TVET programme funded by the
Italian Cooperation, the PEEP program funded by USAID, etc.);
d. The fact that the activity involves products for human consumption requires attention
to safety/health issues (e.g.: treatments with insecticides, fungicides, processing,
conservation, etc.);
e. Overall information on projects’ activities and results is of difficult access. The
baseline information, other primary data, figures to draw conclusions and lessons
resulting from field activities, required to decision-making and to guide upcoming
projects, are scattered and often contradictory;
f. Many figures are recurrent in reports and papers, however the original primary data is
often unclear. Calculations in plans and estimates are frequently offering a range. The
evaluation team found several questionable figures that may lead to unrealistic
forecasts9. This point is specifically addressed in the recommendations;
g. The emphasis on evidence-based decision-making currently necessary for governments
and organizations puts a greater focus on reliable figures and statistics. The role of
measuring and monitoring activities, results and progress towards development goals and
targets is fundamental;
h. It is unclear if a proper system of monitoring and evaluation was set up and is still
working, which type of information was/is collected, if it is standardised and, finally, if
collected figures are processed;
i. The numerous projects implemented since 1986 have established an estimate of at least
2500-3000 ha of olive trees plantations (GoP-PSDP, PARC-PIDSA projects alone
respectively1180 ha 1816 ha);
j. These plantations are likely to yield olives in commercial quantities starting from 2017.
It is the right time to set up the necessary steps (harvest, transport, milling, storage,
9 E.g.: figures on olive production per plant, % of extracted oil from olives, prices for produce.

packaging, marketing, etc.) to further foster the value chain, including extraction plants
(mills and related infrastructure) and, finally, produce commercialisation;
k. In this complex and rapidly evolving context, with activities planned at National,
Provincial and International co-operation level (MAECI-AICS, USAID, JICA), it is of
high priority to formalise the National Compliance Governance Framework for olive
oil value chain;
l. The need to set up a national framework for olive-oil value chain was identified by the
technical mission of Mr Luciano Leonetti, Mr Stefano Valle and Mr Andrea Vannini,
05-06/2016. This proposal is strongly supported by the evaluation mission team and
further developed in the recommendations;
m. The risk of not having such a framework is that several components of the value chain
are in some cases lacking or developed in isolation, dispersed and do not benefit of
existing knowledge and past experiences. The involved sectors span from sapling
production/import, to cultivars choice, plantations, phyto-sanitary aspects, pest control,
harvest, processing options, commercialisation, quality standards, legal issues,
monitoring, research, etc.
XII – ii Recommendations
XII – ii – a Policy
Policy recommendations are aligned and in support of the proposals by Leonetti/Valle/Vannini
mission 05-06/2016.
a) It is fully recognised the need to develop a National Compliance Governance
Framework for olive-oil supply and value chain. This is necessary to allow National bodies
to maintain a level of control in the value chain governance and have new activities, rapidly
increasing in number, in a clear framework, favouring an ordered growth of olive-oil sector’s
development and commercial projects.
b) The second recommendation is to set up Olive-Oil Units at the Ministry of Food
Security and research/Agriculture, in close liaison with the Ministry of Plan, with policy
preparation support and technical roles (Olive-oil Act and National Olive-oil Plan). This also
in order to centralise existing information on past and new projects, focusing on technical
issues. Although it could already be difficult to assess the hundreds of sites and activities set
up in more than 10 years, it is definitely possible to select the best clusters/sites and initially
concentrate efforts on these.
c) The third recommendation is the urgency to clarify and fill normative gaps in order to
obtain a legal framework covering sectors like recognition and registration of cultivars
introduced in the Country, possible new varieties, regulations for the propagation of olive trees,
import of saplings, certification of nurseries able to sell disease free and genetically identified
plants. It emerged that with the current legislation, although plants are regularly produced in
nurseries, it is illegal to do this. It is clearly unreasonable - and enormously risky - to depend

on import of plants to develop an olive tree value chain. It is strongly advisable to became
member of the International Olive Council, (IOC).
d) Subventions are strongly recommended in order to favour the initial small scale and
marginal land farms set up and the subsequent acquisition of agricultural inputs, fertilisers, drip
irrigation systems, etc. It has to be stressed that if the Rural development approach (see Section
VII) is privileged, then planting on marginal lands could be much less productive, as it has
emerged that irrigation is necessary in order to have a constant production.
XII – ii – b Projects
For what concerns the implementation of existing or new projects the recommendations are the
following:
e) Establish a system of monitoring and primary data collection at field level, often
very different from research station conditions. Because of logistic costs for field trips,
innovative ideas for figure transmission should be explored (e.g.: mobile phone and
communication networks/SMS, etc. Digital images of plants, fruits, parasites, disease attacks
could be sent in many cases via mobile network, samples could be stored and periodically
collected). This activity could be combined with the following point f).
f) Establish a small network of “model farms”, true “pilot sites”, based on existing
interventions and capitalising on investments done in the past by several projects on olive tree
culture 10. Objective of these sites (1 or 2 per Province, strategically located) is to produce
reliable figures for agronomical parameters and have demonstrations sites where conduct
trainings and hands-on seminars for producers. The essential information needed is in field
conditions, not research station, where other activities should be carried on. The main primary
information required is about plants/ha, plant survival rate, kg of olives produced per plant/ha,
olive oil extraction rate %, kg/ha oil production, (organoleptic quality of oil/acidity), farm gate
sale price for olive oil and table olives, best adapted and productive cultivars. For each cultural
operation costs and hours of work for the various activities: land preparation/ploughing/soil
management, fertilisation (organic/chemical), irrigation, pruning, weeding, pest and diseases
management, harvesting, transport, milling, storage, packaging.
XIII Lessons Learned
The Olive oil value chain is extremely interesting for Pakistan if seen and clearly set in the
correct perspective. Information sometimes freely circulated or poorly presented, without the
support of correct figures, might mislead and create wrong expectations.
The marketed quantities of palm, cottonseed, rapeseed, sunflower, soybean, canola oil, etc.
imported or locally produced in Pakistan, without overlooking at ghee made in rural areas for
self-consumption are such, that olive oil is realistically not able to substitute imports, from the
2.177.300 tons registered for 2010-2011 by the Pakistan Bureau of Statistics and steadily
increasing.
10 Three main types have been generally internationally recognised: 1) Traditional marginal orchards; 2) Semi-
intensive orchards; 3) High density orchards. The suitable model for Pakistan conditions should be investigated.

FINAL Evaluation Report Olive Oil - GS & RM

FINAL Evaluation Report Olive Oil - GS & RM

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