A Green Investment With Taste – Olive Trees

A Green Investment With Taste - Olive Trees

The country of Algeria has a lucrative green investment opportunity: the Mediterranean Basin. Algeria’s government is involved in a project to plant one million hectares (2.25 million acres) of olive trees across the country. Through an Algerian subsidiary, a Spanish company is participating in the program. To capitalize on its participation in the green agenda, the company will allocate a third of its olive planting to an investment program. This program is designed to increase Algeria’s olive production, improve processing infrastructure, and increase exports of high-quality olive oils. This project, which is more about planting trees than cutting them down, is a great way to provide employment and make good quality olive oil.

Olive Oil and the Mediterranean

Olive oil and olive fruit are as old as civilizations around the Mediterranean Sea. The world’s 95% olive oil is produced today by countries located around the Mediterranean Sea. 77% of olive oil is consumed by countries located around the Mediterranean. The global market for olive oil continues to grow. The 1990s saw a double-digit increase in olive oil consumption worldwide. According to reliable estimates, this will triple between 2000 and 2020. There is a large and growing market for olive oils beyond the historic regions. The program in Algeria is expected to capitalize upon the growing demand for olive oils by increasing production and upgrading processing plants.

Participating in the Algerian Project

The Spanish company will not only participate in the Algerian government’s olive tree planting program but will also construct a modern processing facility in Algeria. The subsidiary will plant 1,500 hectares (3.750 acres) of olive trees. The company will produce a highly intensive arbequina variety of olive trees. One hectare can support 1,780 arbequina trees. The arbequina variety bears fruit in three years instead of the five-year waiting period for olive trees. This variety can produce approximately 11,000 kilograms of oil per hectare. Olives usually yield 19% oil. A hectare of arbequina olive tree trees will yield 11,000 x 0.19 = 2,090 Liters of oil.

See also  Investment in Cardiff, UK

Private investors will be able to benefit from 500 hectares of olive plants that the company has planted over 1,500 hectares. For the first two years, investors will receive interest on their investment and will be allocated one hectare. Investors will then be paid $2 US per litre of oil from their hectare over the next ten years at a reduced interest rate. Investors will receive their initial investment back at that point. The company will pay investors for the oil they produce from their hectare. Investors will not be subject to fluctuations in the price or the sale and export of oil. An investor can expect to earn 11.4% annually on an investment made between years 3 and 10 and double their investment over the course of a ten-year period. Investors can accept investments in increments up to $49,630. They will also be entitled to oil production benefits from one hectare.

Project Size

The entire green project will plant one million hectares. This would be a square measuring 100 kilometres in size if it were all combined. Although this is quite a lot of land, one should remember that Algeria, which borders the Mediterranean Sea, is the second-largest country in Africa, after Sudan, and the eleventh in the world.



You may also like...

Leave a Reply

Your email address will not be published.