Chinese government focuses on the less popular industry of olive

Publish time: 10th March, 2016      Source: CCM
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  The No.1 Proposal of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) of 2016 is The Proposal about Accelerating the Development of the Olive Industry. It has exceeded many people's expectations that the Olive had been the focus of the Proposal.



   Source: Internet


  According to the State Forestry Bureau, the olive is one of the important woody oil-bearing resources in China. It has been of great significance in regard to providing people with healthy and superior edible vegetable oil, developing green industry, increasing income of enterprises, farmers, and forestry workers, protecting ecological environment, reducing China's foreign-trade dependence of edible vegetable oil, and safeguarding national food and oil security.


  The camellia oleifera, oil palm, coconut and olive, which carry the superior edible vegetable oil, are the four major woody oil-bearing plants around the world, among which the olive is also the well-known subtropical fruit tree and important economic tree.


  China introduced the sapling of olive from Albania in 1964 and started the cultivation experiments since then. The tree was successfully cultivated in Longnan, Gansu Province in 1970s. 


  According to Xue Liang, proposer of the No.1 Proposal, among all those edible vegetable oil resources, the olive is the only one that can be directly processed from the fresh fruit by the means of cold pressing and is ready for eating just after the procedure of pressing. The market potential of the olive oil is huge; however, in China, 90% of it relies on the imports at present. Besides, the resources in the suitable planting areas are limited and should be fully developed and exploited. As the suitable planting areas of the olive are mostly the impoverished mountainous areas, developing the industry of olive has greatly benefited the work of anti-poverty development.


  According to the State Forestry Bureau, the consumption of the edible vegetable oil in China has continually increased, which directly result in the gap in the oil supply and high level of the foreign-trade dependence. In 2013, China's yield of edible vegetable oil was 28 million tons, among which 60% of the raw resources depend on import. In 2013, the import of soybean reached 63.38 million tons.


  "In terms of the olive industry in Longnan, Gansu Province, the output value of the fresh fruit was RMB155 million in 2014 and the total value of the output was RMB850 million, which benefited 40 thousand households with the average revenue of RMB2,125,' said Xue.


  "The proportion of the olive earning in the rural per capital net income increased from 12% in 2012 to 21% in 2014. This kind of earning has been one of the important increase incomes for the farmers.' The olive industry has been the pillar industry for alleviating poverty and developing the regional economy in the suitable planting areas.


  The suitable planting areas for growing the olive are mainly distributed in the areas of Gansu, Sichuan, Yunnan, and Chongqing. In Guangyuan City, Sichuan, the cultivated area of the olive was 10,866 hectares, with the output value of RMB160 million. It is planned that by the end of the 13th Five Year Plan, the gross area of the olive cultivating base would reach to 13,333 hectares with the output value more than RMB500 million.


  According to the data released by the State Forestry Bureau, in 2012, the cultivated area of the olive was 19,000 hectares in Gansu Province, accounted for 48.85% of the total cultivated areas in China; the output of the olive was 7,446 tonnes, took up 44.80% of the national gross output of the olive.


  According to the Opinions on Accelerating the Development of Industry of the Woody Oil-bearing Resources released by the Central Office of the State Council in 2014, the government shall accelerate the industries of camellia oleifera, walnut and olive and shall support the industries in investment, financing, technical research and development, and promotion in light of the policies.


  According to the introduction made by the State Forestry Bureau, there are four major obstacles in developing the industry of woody oil-bearing resource in China at present. The first one is the improper and insufficient awareness of the woody oil-bearing resources; the second one is that most of woody oil plants have been in the uncultivated or half-cultivated situations due to the application of seedlings planting in the past, the serious variety degeneration, and extensive operation, and there's no industry has been formed; the third one is that the prior-period investment was too heavy for the farmers could bear, for example, the investment of the prior period in growing camellia oleifera has been in range from RMB1,000 to 3,000; the last one is in regard to the industrialization—the degree of industrialization is low, the industrialization system is still waiting to be formulated and the industrial chain is yet to establish.


  The No.1 Proposal proposed that the country should formulate the strategic target and plan for developing the olive industry, list them into the 13th Five Year Plan, and take the dominant area of Longnan, Gansu as priority to develop the olive industry. The country should also strengthen the support to olive industry. As the prior-period investment is as costly as RMB45, 000 per hectare and the earnings cycle is as long as at least 5 years, the central and local government should offer their supports in regard to the cultivation subsidy, infrastructure construction, finance service, and agricultural insurance. It is also important to improve the operating level of the olive industrialization and strengthen the construction of the professional team in terms of the olive industry.


  Meanwhile, due to characteristics of the long-term investment return and heavy economic input in the woody oil resources industry, the proposal encouraged the commercial financial institution rationally confirms the length of maturity and interest rate and increase the credit input in the premise of the controllable risks. The proposal also propels the innovation of the financial products and service modes, strives to develop the Forestry Rights Mortgage Loan, Rural Household Micro-finance, and Farm Household Group Lending, and explore the launch of the business experimental units for conducting the loan on the rural land contractual management right.


  *This article is an edited and translated version by CCM. The original article comes from


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