Olive Revolution: Pakistan Joins International Olive Council

[Riaz Haq]

Pakistan's Ten Billion Tree Tsunami project launched in 2014 by the PTI government has sparked a silent olive revolution in the country.  Pakistan, now the 19th member of the International Olive Council, is producing about 1,500 tons of olive oil per year and 830 tons of table olives,  according to Juan Vilar Strategic Consultants. It is also helping tackle some of the effects of climate change such as soil erosion and desertification and bringing new opportunities to farmers. Olive cultivation was started as a pilot project in Potohar region by Punjab Chief Minister Shahbaz Sharif's government in 2014. The PTI government promoted it nationwide as a part of Prime Minister Imran Khan's Ten Billion Tree Tsunami initiative to bring about the olive revolution in the country. 

Olive Valley, Pakistan

Pakistan is the world's third largest importer of cooking oil. In 2020, Pakistan imported $2.1 billion worth of palm oil, behind only India's $5.1 billion and China's $4.1 billion in palm oil imports. Increasing olive oil production will help the country reduce its dependence on palm oil imports. Substituting imported palm oil with domestic olive oil may also help improve the heath of Pakistani consumers. 

The International Olive Council (IOC) has 18 members, mostly European and Middle Eastern nations located in the Mediterranean region. Pakistan has joined as its 19th member. The IOC members account for more than 98% of global olive production. The IOC has been headquartered in the Spanish capital Madrid since it was founded in 1959.  The organization specifies acceptable quality control testing methods and assures consumer transparency information, for example: hygiene standards along the supply chain, suitable packing materials and filling tolerances product labelling standards, identification of any food additives or allowable contaminants, recommendations for environmental protection in the use and disposal of olive products.  

Olive Plantation in Peshawar, Pakistan. Source: Olive  Oil Times

Welcoming Pakistan into the organization, Mr. Abdellatif Ghedira, the IOC’s executive director, told Olive Oil Times: “In Pakistan, olive oil culture is making inroads, and so are the opportunities related to that .....The council is a decisive player in contributing to the sustainable and responsible development of olive growing, and it serves as a world forum for discussing policymaking issues and tackling present and future challenges".  

Olive trees thrive in dry arid regions with rocky soils that are more challenging for traditional crops. Pakistan government officials believe that olive farming is an efficient answer both to reforestation needs and economic development. “A special focus in this phase will be given to underprivileged areas of the country, such as Southern Balochistan, Southern Punjab, the tribal areas of Khyber Pakhtunkhwa (KPK) and some parts of Sindh province,” Muhammad Tariq, national project director at the Ministry of National Food Security and Research, told Olive Oil Times. 

It is expected that traditional farming and modern techniques would make large tracts of barren land productive, creating new jobs and growing the economy. Drip irrigation systems are being deployed over 16,000 hectares and 3.6 million olive trees. The Pakistani public and private sectors currently maintain 26 olive oil extraction plants of different capacities, from 80 kilograms per hour to 600, according to Olive Times.

Pakistan has the potential to be a world leader in olive production. In the last decade,  PTI's Ten Billion Tree Tsunami initiative has spurred rapid olive cultivation in Pakistan with the import of 100,000 olive seedlings from top olive producing countries like Spain, Italy and Turkey. Pakistan’s climate is conducive for olive production, as the olive trees grow fast in regions with moderate winters following long hot summers.

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[Riaz Haq]

Edible oil’s rocky year - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2022/12/31/edible-oils-rocky-year/

The year 2022 was not a walk in the park for both the producers and the consumers of palm oil. The year saw historic highs and record lows in the palm oil market causing volatility and at times losses as well.

According to the State Bank of Pakistan, Pakistan imported Palm and Soybean oil in excess of $3.3 billion this year. This is a 33% increase as opposed to the FY21. Despite import restrictions in place. Pakistan has already imported a considerably larger amount of palm and soybean oil between Jul-Nov in FY23, than it did in FY22.

Being such a major import, the prices of palm oil are almost as important as any other global commodity. Let us have a look at how the prices of Palm oil were affected throughout the last year, and how that can act as a lesson for the years to come.

[Riaz Haq]

Palm oil's rare premium leads to 'wash out' in India -dealers | Reuters


https://www.reuters.com/markets/commodities/palm-oils-rare-premium-...


MUMBAI, April 19 (Reuters) - Indian buyers have opted to cancel 75,000 tonnes of palm oil purchases for the first time in many years and switch to rival soft oils, such as sunflower oil and soyoil, five industry officials told Reuters.

Palm oil usually trades at a discount to soft oils, but import restrictions by top producer Indonesia have helped to push palm oil to a premium, making sun oil and soyoil more attractive to buyers.


This has prompted some Indian buyers to reduce purchases of palm oil for May shipments and increase soft oil imports. They can do this via mutual agreements with importers to cancel the sales - a process known locally as a "wash out".

This allows a buyer to sell back a product to the seller based on a pricing formula that includes the prevailing market price.

Lower palm oil imports by India, the world's biggest buyer of vegetable oils, could weigh on Malaysian palm oil prices , but support soyoil and sunflower oil prices.


A few buyers decided to opt for a wash out because of negative margins prevailing in the local market, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

Crude palm oil (CPO) imports are currently being offered at about $1,050 a tonne, including cost, insurance and freight (CIF), in India for May delivery, while palm oil imported in the past few months is now priced between $1,000 to $1,010, dealers said.

Wash outs are relatively rare in the Indian vegetable oil industry and the quantity is usually small at around 5,000 to 10,000 tonnes, said a Mumbai-based dealer with a global trade house.

"Big wash out is happening because of unusual price movement in palm oil. It has been rising even as other oils are falling in the past few months," said the Mumbai-based dealer.



Price-sensitive Asian buyers traditionally rely on palm oil because of low costs and quick shipping times. But palm oil has moved to a premium at the same time as soft oil prices have dropped, partly due to a record rapeseed crop.

Palm oil's discount to rival oils was much as $500 in the December quarter, but now it is holding a rare premium of more than $30 per tonne over sunoil for May shipments, dealers said.

Indian buyers are replacing palm oil with soyoil and sunflower oil for shipments in May, said Rajesh Patel, managing partner at GGN Research.

India's palm oil imports in May could fall to 700,000 tonnes, compared with an average monthly import of 879,000 tonnes so far in 2022/23 marketing year ending on Oct. 31, dealers said.

India buys palm oil mainly from Indonesia, Malaysia and Thailand. It imports soybean and sunflower oil from Argentina, Brazil, Russia and Ukraine.

[Riaz Haq]

Tea plantation to help Pakistan reduce import bill

https://www.nation.com.pk/06-Oct-2022/tea-plantation-to-help-pakist...


ISLAMABAD-Pakistan can reduce its import bill by exploiting its great potential for growing tea on a large scale, WealthPK reported.

Tea is one of the most important high-value cash crops. Despite its low cost, tea is the most popular beverage in Pakistan. The country has great potential for tea plantation on a large scale.

Abdul Waheed, Director of National Tea and High-Value Crops Research Institute Shinkiari, told WealthPK that the current rate of population growth showed that demand for tea would continue to increase over time, putting a strain on limited foreign exchange resources. He said that Pakistan’s total import bill for tea in the fiscal year 2022 was more than $590 million.

According to a recently-conducted survey, there is a huge potential for tea cultivation in Pakistan. It says that 158,000 acres of land in Khyber Pakhtunkwa and 4,000 acres in Azad Jammu and Kashmir are suitable for tea plantation, which can not only meet the local demand but can be also exported to other countries. Abdul Waheed said that more than 15 tonnes of locally produced and processed green tea was exported to Japan during the last three to four years.

Fakhar powers Pakistan to thrashing win over New Zealand in 2nd ODI
“Tea plants can be raised both from seed and cuttings. In Tea World, tea has initially been raised through seeds because of the economic ease with which its plantation is expanded,” said the director of the research centre. Many countries like China, India, and Sri Lanka, the world-known tea producers for centuries, still raise more than 75% of tea through seeds. Due to high population pressure coupled with the low economic condition, Pakistan presently needs to grow tea. The country also needs to increase the yield of all agricultural commodities.

“Historically speaking, nations of the world have always gained self-sufficiency in quantities first before becoming quality conscious. Thus, tea quantity in the shortest possible time can be economically obtained from tea seeds and not from cuttings,” Abdul Waheed told WealthPK. According to the Food and Agriculture Organisation of the United Nations, tea is one of the most important cash crops and plays a significant role in rural development, poverty reduction and food security in exporting and developing countries. It is a principal source of livelihood for millions of people.

[Riaz Haq]

Peanuts to solve high edible oil prices issue
Pakistan, China join hands to increase planting area, crop yield

https://tribune.com.pk/story/2404516/peanuts-to-solve-high-edible-o...


Lately, Rainbow’s high-oleic-acid peanut cultivation base project was formally included in the China-Pakistan agricultural cooperation framework by the Ministry of Agriculture, China.

“As you can see, our seed registration with Pakistan Agricultural Research Council (PARC) has started. A total of five high-oleic peanut varieties for oil extraction of Runhua series have been trial-planted in Pakistan, which is expected to achieve fruitful results,” revealed Fan Changcheng, Deputy General Manager of Rainbow.

“Next, our aim is to increase the area gradually to 1,500 hectares in the coming years,” he said.

“My country has a long tradition of peanut planting. Peanuts like warm environment with sufficient sunlight, with loose and breathable sandy loam as the most suitable soil condition. The Potohar region of Punjab is the best area for peanut production,” Ijaz stated, adding that peanut seeds contain 40-50% oil and the high-oleic peanut oil is rich in unsaturated fatty acids.

“During our trial, we always focused on how the local environment can act on the quality of seeds on the whole. The varieties we selected have the highest oleic acid content, up to 75-80%, which means very high nutritional value.”

“Self-sufficient in peanut production means that we can reduce our import bill of edible oil,” said Muhammad Jahanzaib, Scientific Officer of the Oil Seed Research Programme in NARC Pakistan.

Statistics of the US Department of Agriculture showed that Pakistan’s peanut planting area in 2022-23 is about 150,000 hectares, with total output of 140,000 metric tons.

THE ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET

[Riaz Haq]

Pakistan is planting lots of mangrove forests – so why are some upset? : NPR



https://www.npr.org/2023/11/10/1208201179/pakistan-is-planting-lots...


KETI BANDAR, Pakistan — Wildlife ranger Mohammad Jamali boats through mangrove forests of the Indus River Delta, the terminus of a curly waterway that begins thousands of miles upstream in the Himalayas. Birds flutter in and out. Insects dart around mangrove roots that poke like fingers out of the mud. It looks ancient, but this part of the forest is only 5 years old.

"We planted this," says Jamali, 28-years-old. We — rangers of the wildlife department of the government of the southern Pakistani province of Sindh, and locals of nearby fishing communities.

This forest in southern Pakistan is part of one of the world's largest mangrove restoration projects, covering much of the vast delta, an area nearly the size of Rhode Island. These trees, which exist in slivers between sea and land, are powerhouses of sucking up the carbon dioxide that is dangerously heating up the planet.



"They do this very big job per hectare," says Catherine Lovelock, an expert on coastal ecology. Mangroves capture, or sequester, carbon dioxide "through their roots and into the soil, as well as above ground," she says.

This mangrove reforestation effort alone in the Indus Delta is expected to absorb anestimated 142 million tons of carbon dioxide over the next sixty years. It's a test case for restoration, and planting mangroves at this scale might help the fight to curb planetary warming.




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In Pakistan, some environmentalists say without carbon credits, this massive reforestation project wouldn't have happened. They say the government was incentivized to support it. Instead of having to find the budget to do this, the government is being paid proceeds from carbon credit sales.

So far, Delta Blue Carbon has sold two batches of credits, most recently in June. It's made the provincial government around $40 million so far, according to local media outlet Arab News. It's big money in a poor country.

"It is paying money. It is generating revenue," says ecologist Rafiul Haq who consulted on the mangrove project. Haq says without that revenue stream, the government would be under pressure to let developers in, for shrimp farms or for seaside homes.

Haq says there's another benefit: auditors must evaluate the company's progress before they can sell more carbon credits, which means the mangrove forests are nurtured and protected, and the company has to show local communities are benefiting. "This is a blessing for us," Haq says. "We have to present ourselves as the good boy," he laughs.

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To other environmentalists, the mangrove project is "carbon colonialism."

"I don't begrudge anyone, especially in areas like these, for taking money for large scale restoration projects like this," says Polly Hemming, director of the climate and energy program of the progressive think tank, the Australia Institute. But she says, "it's just another form of carbon colonialism. Like, we'll give you some money to restore your land," and then, sell "your credits to a polluter so they can continue emitting."



Underscoring that argument, Hemming pointed to one of the key purchasers of these carbon credits is one of the world's largest fossil fuel trading companies, Trafigura. It is also one of the world's largest traders of carbon credits. Through a spokesperson, the company declined to comment for this story.

[Riaz Haq]

China to establish special agricultural industrial park in Pakistan

https://www.pakistantoday.com.pk/2024/09/29/china-to-establish-spec...

China’s Anhui Annongda Agricultural Science and Technology Company will collaborate with Pakistan to establish a Special Agricultural Industrial Park.

In this connection, it inked a Memorandum of Understanding (MoU) with Pakistan Carium Healthcare Innovation Company, marking the beginning of a collaborative venture aimed at establishing the Park.

This is a move to bolster the essential oil sector in Pakistan. The partnership will focus on research and development in essential oil extraction, along with the cultivation of plants and herbs rich in essential oils and traditional medicinal properties, China Economic Net (CEN) reported.

The MoU underscores the shared commitment to harnessing Pakistan’s natural resources and fostering innovative practices that will elevate the Pakistan’s position in the global essential oil industry.

The collaboration aims for the production of high-quality, pure essential oils, catering to the burgeoning demand across sectors such as pharmaceuticals, cosmetics and wellness products.

As part of the initiative, they will cultivate stevia, Japanese mint and sweet potatoes, with the first batch of crops in the Park for the extraction of essential oils destined for the pharmaceutical industry.

Essential oils, renowned for their therapeutic properties, have witnessed a surge in popularity due to their diverse applications.

From aromatherapy and skincare to natural remedies, these oils have become an integral part of modern wellness routines.

Pakistan, with its diverse climatic conditions and soil, is ideal for growing herbs and plants that are rich in essential oils.

Under the partnership, Anhui Annongda will transfer state-of-the-art cultivation techniques to Pakistani farmers, which will not only enhance crop yields but also ensure sustainable and efficient production of high-quality essential oils.

The two companies also plan to establish a cutting-edge research laboratory specializing in advanced cell and tissue culture techniques.

The facility will serve as a hub for the propagation of new plant varieties, fruits and vegetables through cell and tissue culture, thereby increasing the diversity and quality of essential oil-producing plants and medicinal herbs.

[Riaz Haq]

Hazara’s Olive Oil Boom Lays Roadmap for Pakistani Sector - Olive Oil Times

https://www.oliveoiltimes.com/production/hazaras-olive-oil-boom-lay...

The northwestern Pakistani region of Hazara has become a proving ground for the national olive oil sector.

Officials and producers are encouraged by early results, believing the region has provided a roadmap for the rest of Pakistan and opened the door to large-scale exports.

Olive oil production in Hazara has risen from 90 kilograms in 2019 to over two tons in 2022 and 2023, providing substantial financial benefits to farmers.
- Saeed Ur Rahman, olive specialist, PARC
“Hundreds of farmers are attracted to grafting olives on a local breed named Kaho,” said Basharat Hussain Shah, the National Tea and High-Value Crops Research Institute (NTHRI) senior director.

“Within two to three years of planting, the trees have started yielding, with the yield increasing each year,” he added. “Over 1,000 hectares of land in Hazara are dedicated to olive trees, and this area is growing annually.”

See Also:Festivals, Conferences Build Momentum for Pakistani Olive Oil Sector
Sabir Sultan is one of the pioneers of olive growing in Hazara, planting the first olive trees of the Zaitoon Family Foundation in 2010.

Over the past 14 years, Sultan has cultivated about 5,000 olive trees via graft, half of which have started producing fruit.

“The climate of Hazara is very suitable for olive cultivation,” he said. “The land space is vast, making cultivating large quantities of olive plants easier.”

The combination of land availability and appropriate olive growing conditions have made Hazara a candidate for larger-scale olive farms, which help to lower agronomic and harvesting costs.

Basharat Hussain Shah (left) sees the potential of grafting local olive tree varieties in Hazara and across Pakistan.
Additionally, Sultan insisted that the region is already leading the way regarding quality.

“An official analysis took place in Pakistan to assess the quality of oil from different regions, and it was found that Hazara produces the highest quality of olive oil in all of Pakistan,” he said.

Along with Arbequina and Leccino, Sultan grows two varieties bred specifically for Hazara’s climate and soil conditions: BARI Zaitoon‑1 and BARI Zaitoon‑2.

“Given the fertility and suitability of the land, if olive cultivation is done efficiently, we will not only be able to stop the import of olive goods but also become capable of exporting it globally,” Sultan said.

Sabir Sultan is a pioneer of olive farming in the Hazara region, where olive oil produciton is growing. (Photo: Sabir Sultan)
“The increase in olive cultivation can be extremely beneficial for Pakistan,” he added. “It can give an immense boost to the economy by reducing olive oil imports, which, along with tea, is one of Pakistan’s biggest imports.”

While Hussain said government support would be necessary for olive cultivation to spread and ultimately succeed in the South Asian country, he added that “the opportunities are limitless.”

The Hazara region, located in the wider Khyber Pakhtunkhwa province, serves as a microcosm for the wider Pakistani industry. Hussain believes many of Hazara’s opportunities and challenges are mirrored nationwide.

“Pakistan’s climate and soil conditions are suitable for olive cultivation, particularly in the northwest regions like Khyber Pakhtunkhwa and Punjab,” he said. “The country has made significant progress in olive farming, with many farmers adopting modern cultivation practices and irrigation systems.”




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Agronomists are helping farmers graft endemic wild olive trees across

According to Saeed, Pakistan produced 86 tons of olive oil in the 2022/23 crop year, most of which was virgin and extra virgin.

“The country has around seven million olive trees planted on 25,000 hectares, with the potential production of these already-planted groves expected to reach 1,400 tons annually,” he said. “By 2027, production is projected to exceed 10,000 tons annually.”

[Riaz Haq]

Italy alongside Pakistan in olive growing
OliveCulture Scale-Up Project Steering Committee Meeting

https://ansabrasil.com.br/english/news/news_from_embassies/2024/12/...

The Secretary General of Pakistan's Ministry of Food Security and Research, Ali Tahir, and the Italian Ambassador to Pakistan, Marilina Armellin, chaired the first meeting of the steering committee of the Italian development cooperation project Scale-Up OliveCulture.
The steering committee is the decision-making body of the project in which representatives of the institutions involved in the implementation of the activities participate with the aim of ensuring their coordination, effectiveness and efficiency.

The high body approved the plan of activities that Ciheam Bari, as a specialised body, will implement over the next three years with funding from the Italian Agency for Development Cooperation (ICAO) of EUR 3 million.
Scale-up Oliveculture aims at expanding the olive oil supply chain and fostering climate-resilient rural development in Pakistan through capacity building of Pakistani public and private actors.

The project, which incorporates funding from the Pakistani government to promote olive cultivation on a commercial scale, aims to bring economic and nutritional benefits to producers and consumers.
Finally, Ambassador Armellin and Secretary General Ali Tahir emphasised the importance of adhering to international standards to ensure high quality products, while supporting entrepreneurship, including female entrepreneurs, and the fight against desertification.