Agriculture Education

In a world of increasingly heart conscious customers the consumption of olive oil doubled between 1990 and 2000 and according to authorities will likely have doubled once more by 2020. Ninety-five percent of olive oil comes from the countries bordering the Mediterranean with Spain, Portugal, Italy, and Greece being the leading produces. Due to the fact of the expected improve in consumption numerous believe that the major producers will just not be able to maintain up with demand. There lies the opportunity for investing in olive oil.

An investor can undoubtedly go into the company of growing olives. If he or she had an agriculture degree or, far better, comes from a family with generations of experience in tending olive orchards and making oil, they might be set. Nevertheless, the investor will want to come across land at a reasonable price where soil conditions and climate are conducive to producing high top quality olives and oil. On the other hand the investor can locate an investment opportunity related to olive production. That is what this is about.

There is a firm in Spain, Espacios Verdes. (Spain is the world’s number one olive oil producer.) This firm will work via a subsidiary in Algeria on the other side of the Mediterranean Sea to grow olives. The Algerian government is promoting a project to plant a million hectares (2.5 million acres) with olive trees for production as the fruit and for olive oil. Espacios Verdes’ subsidiary, Desert Vert, will plant 1,500 hectares as an olive orchard. The firm will devote 500 hectares to private investment.

With out having to till the soil, plant trees, harvest olives, grind into paste, procedure the paste into oil or in any way get their hands dirty an investor can profit from this endeavor. The business will be building its own modern processing plant and will have an operation that takes the olive via to the production of high top quality oil from the arbequinia olive. The prospective investor should contact the managing representative of this project, Userbancorp, for details. However, the investment comes down to this. After investing in the project the investor will obtain interest as well as a payment of per liter of oil produced for one hectare of olives. The Arbequinia olive can produce 20 liters of oil per 100 kilos of olives and is a strong producer. The investment will run for ten years and the last payment will include interest, profit on olive oil produced, and the initial investment quantity.

This sort of investment is backed up by land, the olive trees, and a processing plant. Olive trees live for a lengthy, long time. (Olive trees 2,000 years old exist around the Mediterranean.) Thus, there is a security in investing in olive trees and olive oil production. With the steadily growing demand for olive oil this is likely to be a profitable venture far into the future. The principals in this investment estimate that investors will double their funds over the ten years of the investment.