A Green Investment With Taste - Olive Trees

An interesting and profitable green investment(3,750 acres) with olive trees. The company will
opportunity is in the Mediterranean Basin in theplant the hyper intensive arbequinia olive tree
country of Algeria. The government of Algeria isvariety. The arbequinia can be planted 1,780 trees
engaged in a project to plan one million hectaresto a hectare. This variety begins to bear fruit at
(2.5 million acres) of olive trees throughout thethree years instead of five, the usual waiting time
country. A Spanish company is taking part in thisfor olive trees. This variety can typically produce
program through an Algerian subsidiary. The11,000 kilograms of olives per hectare. The olives
company will be allocating a third of its planting fortypically yield 19% oil. Thus a hectare of arbequinia
an investment program in order to capitalize itsolive trees will produce 11,000 x 0.19 = 2,090 liters
part in this green program aimed at increasingof oil.
Algeria's olive production, improving processingOut of the company's 1,500 hectares of planted
infrastructure, and increasing the export of higholives it is allocating 500 hectares for the benefit
quality olive oils. In world concerned with plantingof private investors. Investors will be allotted one
trees instead of cutting them down this project ishectare and will be paid interest on their
a profitable means of planting trees as well asinvestment for the first two years. Thereafter
providing employment, and making some reallyinvestors will be paid a reduced rate of interest
good olive oil in the process.and $2 US for each liter of oil produced from their
Olive Oil and the Mediterraneanhectare through ten years. At that time their initial
The olive as a fruit and its oil are as old asinvestment will be returned. As the company will
civilization around the Mediterranean Sea. Todaypay investors for the oil their hectare produces,
the countries around the Mediterranean Seathe investor will have not a risk associated with
produce 95% of the world's olive oil. Thethe price of the oil nor the export and sale of the
countries around the Mediterranean also consumesame. The company estimates that an investor
77% of the oil. The worldwide market for olive oilwill earn an average of 11.4% per year on their
is increasing. Worldwide consumption doubled ininvestment during years 3 to 10 and will double
the 1990's and according to reliable estimates willtheir money over the time span of the ten year
have tripled between 2000 and 2020. Thus, thereinvestment. Investments will be accepted in
is a substantial and growing market for olive oilincrements of $49,630 and will entitle the investor
beyond its historic region. Algeria's program isto the benefits of oil production from one hectare.
expected to capitalize on increasing demand forProject Size
olive oil by putting more land into production andThis green project in its entirety will plant a million
upgrading processing facilities.hectares. If put together in one block that would
Taking Part in the Algerian Projectamount to a square a hundred kilometers on a
Besides taking part in the Algerian government'sside. This is a lot of land but one must remember
olive tree planting project the Spanish companythat Algeria is the largest nation bordering on the
alluded to will also build a modern processing plantMediterranean, the second largest in Africa after
in Algeria. Its subsidiary will plant 1,500 hectaresthe Sudan, and the eleventh largest in the world.