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CHAPTER 7
The Syrian Olive Oil and Table Olive Sub-Sectors
by Ivan Malevolti

7.1 Introduction

The objective of this Chapter is to analyse the main features of the economics of the olive oil and secondarily the table olive sub-sectors in Syria and to identify their constraints and potential in relation to domestic and international markets. Now more than ever, marketing issues are becoming more and more important since production has exceeded domestic consumption. In the near future, the gap between production on one hand and consumption and export on the other hand could further increase because of the past and present olive tree planting caused by the land reclamation policy. The Chapter analyses the main issues in relation to these aspects and problems: in particular, development of international olive oil market and price structure and economics of the Syrian olive oil sub-sector. It integrates the results of field research carried out from September 1998 to February 1999, concerning agents’ behaviour and agricultural procedures from harvesting to oil conservation, processing mills and trading in Syria.

7.2 An overview of the olive oil sub-sector

a) Development of international production and demand

There are two main elements to consider in international olive oil production and marketing at the beginning of the 2000s: production growth and consumption development (Table 7.1) which are determined by different factors, namely strategic national policies and farms' investments (promoted by some countries), new consumers, new consumers' needs and knowledge about diet and health and International Olive Oil Council (IOOC) promotion. Production increased from 1 999 million tonnes in 1987 to 2 598 million tonnes in 1997 and to 2 698 million tonnes in 2001. Consumption increased from 1 824 million tonnes to 2 160 million tonnes during the same period (up-to-date data is 2 580 million tonnes in 2001).

Figure 7.1 World olive oil production and consumption

Table 7.1 World olive oil production and consumption (000 Mt)

Year

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Production

1999

1509

1778

1513

2322

1847

1902

1806

1671

2585

2598

2404

2345

2540

2698

Consumption

1824

1866

1770

1873

1843

1880

1947

2023

1929

2053

2160

2188

2298

2407

2581*

Soce: FAO (* Source: IOOC).

During the fifteen years under review, supply exceeded the demand in four years (1987, 1991, 1996 and 1997), but from 1996 onwards there has been surplus production (between 47 and 532 thousand tonnes). Consequently, the surplus has been and continues to be a source of worry for producers, but at the same time also a great incentive to push selling activities because consumption has grown and continues growing.

Old and new producing and consuming countries play different roles in the olive oil market. Although Syrian production is increasing, its weight in international markets is still insignificant.

The international market can be divided into four categories, namely:

i) Old traditional producers and consumers: net exporters (Algeria, Greece, Lebanon, Morocco, Tunisia, and Turkey) and importing/exporting countries (Italy with a debit balance and Spain with an active balance);

ii) Non-producing new and old consumers (Canada, Japan, Brazil) or consumers with a little experience in production at an initial stage (USA, Australia, New Zealand);

iii) European consumers: non-producers (UK, Germany) or with a little production (France) with common import regulations of the European Union;

iv) A specific market. Finally, a specific market can be added, i.e. Syrian people permanently living abroad. Nothing is known about their consumption behaviours, tastes and relationships with homeland, but they amount to about nine million persons (according to the Ministry of Foreign Affairs of Syria) distributed as follow: Brazil (5 million), Argentina (2 million), Venezuela and Caribbean (0.6 million), Jordan, the United Arab Emirates, and Kuwait (0.6 million), Canada and USA (0.4 million), Saudi Arabia (0.3), EU (0.15 million), others (40 thousand). This is a “second Syria”, and thus it would be appropriate to explore their propensity to consume Syrian products.

The first producer country in the world (Table 7.2) is Spain (39 percent of the world production in 1997-98 as a biennial average) after many years of trading off the leading position with Italy (22 percent production share, and 20 percent in 2000-01). The “national guaranteed quota” (NGQ), established by EU agricultural policy, allocates certain quotas to countries (760 thousand tonnes for Spain and 543 for Italy) even though actual production is often higher (especially in Spain). Other Mediterranean producers follow the two leading countries, such as Greece (over 400 thousand tonnes), Tunisia (135 thousand tonnes, and 140 in 2000-01) and Turkey (110 thousand tonnes, but 185 in 2000-01).

Table 7.2 Olive oil production in the main countries
(Q biennial average, 000 Mt) (percentage out of world production)

Years

Italy

Spain

Greece

Tunisia

Turkey

Syria

Q

%

Q

%

Q

%

Q

%

Q

%

Q

%

1987-88

545

31,1

567

32,0

296

16,0

77

4,4

73

4,1

59

3,4

1992-93

500

26,7

586

31,3

331

17,6

165

8,0

53

2,8

82

4,4

1997-98

562

22,5

985

39,4

404

16,2

135

5,0

110

4,0

111

4,4

2000-01

533

20,4

1017

38,9

424

16,2

140

5,4

185

7,1

130

5,0

Source: FAO.

Old producing and consuming countries in the EU have saturated markets, with 12 kg or more per capita consumption (Greece, with 18-19 kg), but with a heavy trade among themselves. They also import products from outside the EU. With regard to quantity, they do not need the product to cover deficits in consumption, except Italy, but marketing strategies of the manufacturing and trading firms cause very important and complex product flows. Italy is in the centre of this market as the main consumer, importer and exporter to non-EU countries and oil refiners.

Traditionally, low priced oil is exported to this rich area by other Mediterranean countries thanks to different governmental agreements (Tunisia and Turkey in large quantities).

Statistical data on consumption in new and old consumer countries (Table 7.3a and b) show an important and growing demand:

Table 7.3a Total consumption of olive oil in the main Mediterranean Countries (000 Mt)

Year

Italy

Spain

Greece

Morocco

Syria

Tunisia

Turkey

1987

679.2

439.4

195.7

41.3

59.3

42.0

47.8

1992

637.5

460.5

185.7

37.5

71.5

27.7

43.7

1997

698.0

459.9

187.7

37.6

84.0

60.0

42.0

2000

748.2

466.6

198.3

44.0

104.0

62.7

71.4

Source: FAO.

Table 7.3b Olive oil consumption data for some extra Mediterranean Countries (000 Mt)

Years

Canada

Japan

Australia

USA

UK

Germany

Belgium-Lux.

1987

6.1

2.4

7.2

64.3

5.0

7.2

1.5

1992

11.5

4.8

12.3

99.0

10.1

11.2

2.8

1997

17.4

29.0

20.9

153.7

25.9

17.7

7.0

2000

23.9

27.3

26.8

198.3

41.5

31.2

11.8

Source: FAO.

Noticeable cases are: USA, from 64 thousand tonnes in 1987 to 154 in 1997 and 198 in 2000; Japan, from 2.4 thousand tonnes in 1987 to 29 in 1997 and 27 in 2000; Australia, 21 thousand tonnes in 1997 and 27 in 2000; Canada, 17 thousand tonnes in 1997 and 24 in 2000; UK, 26 thousand tonnes in 1997 and 41 in 2000; Germany, 18 thousand tonnes in 1997 and 31 in 2000. In the new consuming countries, per capita consumption (Table 7.4) is low but growing over a 14 year period: US from 0.3 to 0.7 kg/year; UK from 0.1 to 0.7, Germany from 0.1 to 0.4, Belgium from 0.1 to 1.1.

Table 7.4 Per capita consumption of olive oil in the main countries (kg/year)

Years

Greece

Italy

Spain

Tunisia

Syria

Australia

Turkey

Belgium Luxemb.

France

Canada

UK

USA

Germany

1987

19.5

12.0

11.3

5.5

5.3

0.4

0.9

0.1

0.5

0.2

0.1

0.3

0.1

1992

18.1

11.2

11.7

3.3

5.4

0.7

0.7

0.3

0.6

0.4

0.2

0.4

0.1

1997

17.8

12.1

11.5

6.5

5.6

1.1

0.7

0.7

1.0

0.6

0.4

0.6

0.2

2000

18.7

13.0

11.7

6.6

6.4

1.4

1.1

1.1

1.1

0.8

0.7

0.7

0.4

Source: FAO.

Syria is the fifth or sixth world producer (4.4-5.0 percent production share for 1997-98 and 2000-01) with about 111 thousand tonnes in 1997-98 and 130 in 2000-01. Its consumption has grown from 59 thousand tonnes in 1987 to 84 in 1997 only because of the population growth and not because of the per capita increase (from 5.3 kg to 5.6 kg). Data updated to the year 2000 show a total consumption of about 104 thousand tonnes with a per capita consumption of 6.4 kg.

b) International import and export framework

The market is not only a set of aggregate figures of domestic or international trading exchange, but is also an institutional system of relationships, rules and regulations. In addition, countries import or export olive oil following their own general commercial procedures and relationships fixed by bilateral or international agreements.

For instance, the EU has a long history in olive oil market organization, protection of the olive oil sub-sector and agreements with non-EU partners (southern Mediterranean countries). Even though the GATT agreements and WTO rules push towards wider international trade liberalization, the internal situations and national strategies can still determine rules to organize and control domestic production and consumption and fix trade duties and barriers. Moreover, the European saturated consumption and assured commercial relationships between the EU and non-EU countries create a “natural” barrier against some newer exporters, like Syria. A possibility to export to the EU is in accordance with the Preferential Trade Agreement (PTA) procedures; obviously this is a marketing policy for whoever wants to sell low priced products.

Certainly, with the new international rules, European farmers and traders will not be able to stop competitive imports for very long. In the face of new risks, they are trying to find or enlarge new markets while the new EU agricultural policy is now focused on improving their products and the efficiency of their associations and cooperatives. Consequently, international competition grows although the annual increase of consumption rate could satisfy all exporters. This is true at least until some country, that has already gained knowledge and experience in olive production, will start to offer its product (for example, the USA, Australia, etc.).

The international structure of import and export (Table 7.5 and Table 7.6) shows that Spain, Greece and Italy are the main exporters (3/4 of total world export), with Italy and Spain being the main importers (1/2 of the world total) and the USA the main net importer (15 percent). Italy and Spain are the main producing countries with the highest quantity of imports; they use imports to transform, refine and export. Italy imports from Greece, Spain and Tunisia; Spain imports from Greece, Tunisia and also from Italy and a small quantity from Syria. The double direction of the production flows between Spain and Italy could sound odd but the phenomenon can be explained by looking at different firms' quality strategies and the national supply system.

Table 7.5 World export of olive oil in the main countries
(Q biennial average 000 Mt) (percentage out of world production)

Years

Spain

Greece

Italy

Tunisia

Turkey

Portugal

Q

%

Q

%

Q

%

Q

%

Q

%

Q

%

1987-1988

248.8

42.5

61.0

10.5

101.5

17.3

54.6

9.3

29.4

5.0

17.1

2.9

1992-1993

203.5

28.9

160.3

22.8

157.6

22.4

112.4

16.0

8.9

1.3

15.0

2.1

1997-1998

419.4

41.0

134.8

13.2

212.9

20.8

128.3

12.6

48.4

4.7

24.1

2.4

1999-2000

325.0

30.0

189.2

17.4

293.6

27.0

143.2

13.2

59.6

5.5

23.3

2.1

Source: FAO.

Table 7.6 World import of olive oil in the main countries
(Q biennial average 000 Mt) (percentage out of world production)

Years

Italy

Spain

USA

France

Portugal

Brazil

Q

%

Q

%

Q

%

Q

%

Q

%

Q

%

1987-1988

282.9

45.7

4.8

0.8

72.4

11.0

30.7

5.0

3.7

0.6

12.2

2.0

1992-1993

274.3

38.7

67.4

9.5

118.0

16.7

55.8

7.9

20.0

2.8

14.6

2.1

1997-1998

476.4

43.4

62.3

5.7

164.3

15.0

73.4

6.7

45.2

4.1

27.4

2.0

1999-2000

453.1

39.2

85.3

7.4

183.3

15.9

83.0

7.2

39.6

3.4

24.9

2.2

Spain exports to many different markets but mostly to Italy, while Italy’s main client is the USA. However, there are differences that need to be analyzed. In fact, Spain and Italy's import structure in relation the various olive oil typologies are very different. One can distinguish import share of virgin olive oil (other than lampante) from the total: Spain at 23 percent and Italy at 57 percent. This means that Italian consumers prefer extra virgin, but it must be remembered that Italy also exports it. This country is ahead regarding quality consumption and is in a position to control the extra virgin international market. Nevertheless, its industry structure is also organized to export refined oil via the import of lampante oil (the main importer).

The data demonstrate that there are two international markets. The first includes the countries and market niches that absorb current quality such as the USA, Japan and Canada. The second includes the countries and niches where consumers strongly appreciate high quality, e.g. France, Britain and Germany and also niches in the previously mentioned countries.

Italian olive oil quality (both national and foreign imported products) and trade skills (but the general image of quality always helps) allowed Italy to enlarge its market share during a ten years time span in different countries. In France, Spain maintains the first position but its share has decreased from 59 percent to 53 percent during the period 1990/91-1995/96, while Italy’s share has increased from 13 percent to 45 percent. In Great Britain, Spain’s share decreased from 50 percent to 29 percent and Italy moved from 37 percent to 53 percent. In Germany the percentage “goes down” to 83 percent because of direct import from Spain (11 percent) and Greece (6 percent).

It is clear from the above review that:

i) there are three types of barriers: the affluent southern European countries with their saturated markets (natural barriers); the previous agreements with certain southern Mediterranean countries (relationship barriers) which, furthermore, obstruct the entry of the product to northern EU members’ countries subject to EU regulations (regulation barriers);

ii) a possibility to export to the EU in accordance with the PTA exists, but at low prices;

iii) there are international markets interested in high quality oil (extra virgin/high price);

iv) manufacturers and commercial firms continue to refine lampante oil and to blend it with low price virgins bought in exporting countries; they aim at selling to less affluent niches;

v) the difference between the two groups of markets (iii and

iv) can be determined by the extent of their knowledge; thus, the efforts of the high quality producers should aim at teaching and transmitting to consumers the higher quality characteristics;

vi) many farmers, as direct producers interested in selling their product in competitive markets, try to improve quality;

vii) the Italian pivotal market is very interested in consuming, importing and exporting extra virgin and also in importing and exporting refined oil.

c) International prices

The above discussion has provided some important points of reference for whoever wishes to cope with the difficulties involved in entering new markets and to exploit the opportunities. It has yet to be demonstrated how quality rewards price. In fact, the discussion will be focused on this relationship where different levels of quality are not a problem for olive oils' specification (different levels of acidity and peroxide), but rather represent a complex set of natural characteristics (acidity and organoleptic variables).

In order to discuss the price differentiation and to understand the relationship between quality and price one can analyze two different market structures, e.g. Italy and Spain.

Italian importers pay extra-virgin +7 percent to +8 percent more than the Spanish to support their quality policy and Italian exporters sell at +7 to +10 percent higher price thanks to the quality of the products. Furthermore, lampante oil is bought by Italy at higher prices than Spain; in fact, Italian firms accept to pay this amount because they recognize the good quality of Spanish lampante and need it to process and export.

Thus, in bulk and at the wholesale market from different origins, for virgin olive oils, other than lampante (EUROSTAT and INEA-Istituto Nazionale di Economia Agraria, average 1995-1996, US$/kg), one can observe the following:

Spain pays

US$4.18 from EU

or US$3.22 from non-EU

Italy pays

US$4.53 from EU

or US$3.47 from non-EU

Spain sells at

US$4.64 to EU

or at US$4.87 to non-EU

Italy sells at

US$5.12 to EU

or at US$5.23 to non-EU

Export prices from Italy, for the group of virgins (other than lampante), show a difference of more than 20 percent on the average import price. Japan pays US$7.39/kg (more than 23 percent above the average). Also, the UK, Germany and other countries pay more than the average while France (thanks to a close relationship with Italy), the USA and Canada (tradition and consumers' preference) pay less. There is a big export/import difference also for refined olive oil (+26 percent): this ratio suggests the importance of the processing and commercial improvements.

The price issue is central in this paper, but it can be argued that “international prices” are not as important as analyzing different levels of quality, origins, market destinations (consumption, manufacturing), targets and niches. The greatest part of olive oil is sold in bulk and thus sets the olive oil international price (Table 7.7), but this type of price also contains differences because it is an average and involves different institutional agreements. The point made is that the reference to international price should be of no concern when actors are market oriented and endeavour to sell differentiated products (product differentiation) or high quality product.

Table 7.7 Export prices 1998/1999 for olive oil type (f.o.b. US$)

Country

Index

Extra virgin olive oil

Mediterranean extra EU

57

$1.71 market price

38

$1.14 duty price

----

----------

95

$2.85 final price

Greece

94

$2.56

Spain

81

$2.45

Italy

100

$3.02



Lampante virgin olive oil

P lamp/P extra virgin

Mediterranean extra EU

73

$1.42 market price

83%

59

$1.14 duty price

-

----

---------

----

132

$2.56 final price

90%

Greece

103

$1.99

78%

Spain

115

$2.22

91%

Italy

100

$1.94

64%

Source: I. Malevolti/Private firms.

In fact, data collected from bulletins of Italian Chambers of Commerce refer to the three most important wholesale markets: Bari as the first production centre; Imperia as an important harbour for import and also as a small area with good production; Florence as the centre of trading, refining and blending and point of reference for quality markets. One very interesting datum among others is the reference to “local production” (Table 7.8).

If the price of current Italian extra virgin in bulk at wholesale markets is equal to 100 - index number basis- in Bari for Puglia's production (up to 1 percent acidity, but low price), this index increases to 240 in Florence for the Tuscan production and to 265 (0.5 percent acidity) in Imperia for the Ligurian production (prices vary from US$6.23 to US$7.71/kg).

Moreover, one can look at final prices (retail) in some affluent consumer countries where consumption is growing. During the summer of 1998, data were collected by the author directly in Britain and Germany. It is worth mentioning that on the United Kingdom supermarket shelves one can find Tuscan products (Tuscany, an Italian region, has its own characteristics of quality) selling from US$9.6 to US$16.7/litre, other Italian products from U$10.2 to US$12.7, Spanish products from US$9.6 to US$10.5, one Greek product at US$7.2. In Germany prices are cheaper than in United Kingdom (from US$3.6 to US$12.5/litre); the highest prices (US$12.5) are from Florence (Tuscany) and Imperia (Liguria).

Table 7.8 Olive oil wholesale prices in bulk/tanker


Bari

Florence

LIT/kg

$/kg

Index A

LIT /kg

$/kg

Index A

Index

Extra Virgin
(< 1%)

4 900

2.90

100

local production 11 750
from Puglia 5 300
from Greece 5 000
from Spain A 6 500
from Spain B 4 200

6.97
3.14
2.96
3.85
2.49

240
108
102
133
86

100
45
43
55
36

Virgin (< 2%)

3 550

2.10

72

from Puglia 3 650
from Lazio 7 050

2.16
4.18

74
144

31
60

Ordinary (<3.3%)

3 100

1.84

63

-




Lampante (>3.3%)

2 950

1.75

60

-




Refined

3 370

2.00

69

3 400

2.02

69

29

Refined Olive-pomace oil

1 750

1.04

36














Imperia


LIT /kg

US$/kg

Index A

Index

Extra Virgin
(< 1%)

local production (0,5%) 13 000
local production (1%) 10 550
national production 5 250

7.71
6.23
3.12

265
214
107

100
81
40

1998: US$1 = LIT 1 686.72 (Italian Lira)
Source: Informatore Agrario.

The international structure of consumption, production, trade and price/quality can shed light on ways to explore new policies and marketing tools to enlarge one's own individual or national outlet.

This last statement introduces the following analysis on olive oil economics and the field research in Syria.

d) Economics of Syrian olive oil sub-sector

In Syria, the “quantity approach” seems to prevail over the “quality approach”. This situation results from the previous government's policy of reclaiming lands to increase agricultural production, especially of olive trees. A large number of Syrian farmers (377 000 families) are involved in olive tree cultivation and olive oil production and selling.

This policy has allowed for planting millions of olive trees from 38.6 million trees in 1988 to 58.3 million out of which 35.4 were in production in 1997. This led to increasing domestic olive oil production (from 66 000 tonnes as average for 1987-1988 to 116 000 tonnes as average for 1996-1997, i.e. +76 percent) while the consumption has increased more slowly (from 59 000 tonnes in 1987 to 75 500 tonnes in 1996, i.e. +28 percent).

The above data help to focus on the central problem of Syrian supply: the next “structural surplus”. The IOOC, the SEBC survey and Syrian statistical data provided some figures and estimates. If the reclamation policy and the planting of olive trees continue, Syria will be producing 200 000 tonnes by the year 2010. In the same year, based on the population growth rate (2.76 percent/year), on the income elasticity coefficient (0.4) and per capita consumption (5.4 kg), the total consumption will reach only 115 000 tonnes. Therefore, the surplus will be 85 000 tonnes. These estimates are not only based on past trends, but have to take into account that 23 million olive trees (40 percent of the total) are going to start producing. At the very minimum, with one kg of oil production per tree, the total increase will be 23 000 tonnes.

The obvious solution to the expected crisis in the sub-sector is to export surplus. However, export is a difficult outlet because of the lack in traders' skills, Syrian prices, and also the problems in defining olive oil types and guaranteeing qualitative standards in accordance with international markets. In this last case the problem is the renewal of processing plants and processing procedures. At present the mill system is composed of 15 percent old presses, 66 percent hydraulic presses, and 19 percent continuous systems.

These mills process, respectively, 2 percent, 42 percent and 56 percent of the total national production. Undoubtedly, it is not a modern processing system compared to that in the European countries, which are more and more worried about the quality required by consumers. Moreover, the number of producing farms per mill is very high (SEBC, 1998): in terms of trees the ratio is 77 500 trees/mill while Europe has only 23 000 trees per mill. This is one of the causes of the overcrowding at the mills during the harvest time with failures in meeting schedules agreed to with the peasants. It is a cause of the olive oil deterioration, among others, as can be seen from the results of the survey.

Concerning quality (in particular acidity), Syrian experts estimate that 50 percent of the oil belongs to (following the old classification, nowadays substituted by an international range) olive oil type 1 (up to 1.5 percent acidity); the farms’survey shows 57-58 percent with a fraction of extra virgin (up to 1.0 percent acidity) of 16.5 percent. Millers claim to sell 31 percent extra virgin and 28 percent of the second fraction of type 1 (1.0 to 1.5 percent. Total type 1 is 59 percent). At the wholesale level the extra virgin datum is similar to the datum at the farmers’ level (17.5 percent), but the second fraction changes to 26.1 percent: so the total type 1 is 43.6 percent. There is some difference, but the total type 1 is an important result if one considers that a fraction of type 2 enters in the international range of 1-2 degrees of acidity or, in other words, in fine virgin olive oil.

If good acidity seems to be partially assured, the real problem is in the deterioration of the other very important components of quality (smell, flavour, taste, and colour). A measure of these parameters is given by the survey.

Since 1991, the surplus (previous Tables 7.2 and 7.3) has been growing (from 6 500 tonnes, biennial average, to 49 500 tonnes in 1996) while the export has fluctuated during the three years period, 1995-1997, from 5 000 to 11 000 and 3 000 tonnes without a clear trend. But export seems to absorb only a small part of the surplus. Where does this surplus go? The first possibility is that part of it goes in small amounts to neighbouring countries for “local” consumption or is even exported with a new “origin” (author's informal information). Another explanation is that domestic consumption is higher than what the official figures show (as the results of the marketing survey seems to demonstrate).

To avoid the threat of a sudden drop of internal prices, the Government has opened the market on the side of supply adopting some resolutions to favour export via tariff exemptions, but maintaining closure on the side of import. This is the main element that has an impact on internal production (continuously increasing) and the market system (high consumption prices). So, internal current price distortion or, more correctly a “price difference”, can be measured by comparing Syrian prices with southern Mediterranean supply prices (one needs a specific Producer Subsidy Equivalent study to detail this calculation; nevertheless, there are not specific marketing and pricing or special credit policies or taxes and subsidies distorting the internal market). Obviously, this distortion could have an impact also on export competition, but information on price export levels (exporters’ informal statements) show that in international non-EU markets (Brazil, the USA and the Gulf countries, for instance), Syrian supply is competitive or finds its own outlet.

In conclusion, until now surplus does not create great problems for the domestic market. Nevertheless, the contingent equilibrium, possibly produced by formal and informal export, tariff exemption, cheaper prices paid to producers by exporters cannot last longer. A new high production level and higher domestic consumption in statistical information go against this equilibrium.

Concerning this last point, the consumer consumption survey showed (field research):

i) at the lowest income class, per capita consumption is already high (8 kg) and increases to 11 kilograms in higher income classes (European consumer countries standards);

ii) when income doubles per capita consumption increases by 25 percent from the lower income class to the next class; after, p.c. consumption doesn’t change.

Thus, to cope with the real possible crisis in the internal market, there are two main actions to start off with: organizing export and improving oil quality. Factors in favour of such actions are the traditional trading abilities of Syrian people, the high quality level of Syrian olives before harvesting and the integrated pest management programme promoted by the Extension Service.

As to the commercial skills referred to, and in contrast with the well-known traditional abilities, a large number of experts and exporters claim they lackknowledge, experience and management of export (lost skills). Furthermore, the possibility of improving these skills is hindered by inadequate norms and procedures for export (credit, procedures, public promotion).

The field research has tried to “measure” the agents’ real behaviour in relation to production and processing aspects, as follows.


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