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Middle East & North Africa Th ME is where it all started. Tunisia is the number one producing country in North Africa.

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Old September 5th, 2008, 04:40 AM
SadounOliveOil's Avatar
SadounOliveOil SadounOliveOil is offline
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Join Date: Dec 1998
Location: Olive Mill in Jordan
Posts: 103
As special interest presses oil

Dear Mr. Yusuf Mansur

Ramadan Kareem

I have read your article: "As special interest presses oil " http://www.jordantimes.com/?news=10449&searchFor=olive

You are claiming that "A recent decision by the Ministry of Agriculture to allow the importation of olive oil and the export of olives has been met with uproar from olive oil producers and owners of olive presses." Your article seems to imply that the Press Owners are the only people who benefit from olive oil in Jordan.

I want to include in the uproar, if you well, 80,000 JORDANIAN families who rely on the harvest of olive and production of olive oil to feed their families. That is according to your colleague's article Mr. Hani Hazaimeh, and according to the Agriculture Ministry estimates.
See article here: http://www.jordantimes.com/index.php?news=10310

The owners of the olive presses are only a fraction of the industry. It is the Olive producers (the farmers and pickers) who are mostly impacted by the prices and by the decisions of the Agriculture Ministry.

In addition, please keep in mind that the olive press owners have an investment and business that they need to protect and grow.
  • The press (or the business) runs only 2 months out of the year.
  • Prices for the machinery, replacement spare parts, and labor has increased more than 50% in the last 7 years due to the devaluation of the US$ compared to the EURO and other currencies.
  • Olive production has "alternate bearing habit", under which olive production peaks in alternate years. That means the presses are running less than capacity every other year.
  • This results in a huge overhead cost to the presses.
  • Price of olive oil must keep up with inflation to make it profitable for the business.
  • Businesses are created to make a profit so that they can grow and re-invest that profit in expansion and hiring more people. Without profit, businesses will seize to exist.
In a small market like Jordan, protecting the local 80,000 JORDANIAN olive producers (farmers and pickers) and the 106 local press owners, should be a priority of the Agriculture Ministry. If you advocate the press owners should get out of business and stop complaining to protect their business and investments, where are those 80,000 families, that rely on their olive to make a living, going to press their olives and support their families?

I believe, it is the Farmers families and their interest should be the number one driver behind any decisions that the Agriculture Ministry take.

Best regards,
Sadoun
www.oliveoilonline.com
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