olive production prospects challenges in nepal

1. OLIVE: Prospects &
Challenges in Nepal
Shiva Dhakal
Msc.Ag(Horticulture)
Agriculture and Forestry
University, Nepal
07/07/2018

2. Introduction
 Olive (Olea Sp) : Native to Mediterranean region tropical and
central Asia various parts of Africa
 At a site in Spain, carbon-dating has shown olive seed found
over there to be eight thousand years old (Zohary & Spiegel-
Roy, 1975)
 Olives are also grown commercially in California, Australia and
South Africa and recently in India, Pakistan, China and Nepal.
 Olea cuspidata is a species locally known as "Lotto" in Dolpa
and "Launtho" in Bajura districts of Nepal (TISC, 2002).
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3. Uses
 Olive oil - consumption
 Olive pulp - pickling
 Leaves - fodder
 Olive Oil cake - manure
 Timber - firewood and farm handles
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4. Taxonomical classification of olive
 Kingdom : Plantae
 Super division: Spermatophyta (seed plants)
 Division: Mangoliphyta (flowering plants)
 Class : Mangoliopsida (dicotyledons)
 Sub- class : Asteridae
 Order : Lamiales
 Family : Oleaceae
 Genus : Olea
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5.  In Nepal, Olea europaea var. sativa is distributed in different
locations from Far-west to Central Development Regions.
Table 1. Two Olea species and their availability in different
localities in Nepal
Species District Locality Elevation
(masl)
Olea
cuspidate
Dolpa Parang & Thuli Bheri, Dunai, Upper
Bheri Bheri, Tallon, Parakya Logne
Karnali
1100 – 1800
Rukkum Godamkot 1150
Humla Darma, Simikot 1800
Bajura Kaligad, Kolti, Boldhik 2192
Olea
glandulifera
Bajhang Chainpur, Manakot, Baru Ganga 1530-1566
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6. Scenario of olive in world
(IOC, 2018)
Fig 1. Global production and consumption of olive in last 50 years
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7. Top olive producers
Rank Country Annual Olive Production in Metric Tons
1 Spain 5,276,899
2 Italy 3,220,674
3 Greece 2,232,412
4 Turkey 1,292,072
5 Tunisia 841,524
6 Morocco 745,019
7 Syria 730,692
8 Egypt 332,321
9 Portugal 325,938
10 Algeria 299,404
(IOC, 2018)
Table 2. Top olive producing countries in 2016
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8. Olive in Nepal
 Wild olives were recorded at Matyalo of Bajura district on both
the deforested and cultivated areas along the Karnali river
(Paudel, 2009).
 Commercial cultivars
 Nuovo, Nabali, and Manzanilla HADP in 1978
 Mission and Rakka by JICA in 1994
 18 cultivars by FAO in 1998 (Dhakal & Regmi, 2008)
 28 varieties of olive from Tuscia university, Italy
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9. Prospects in Nepal
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10. Climatic suitability
 Maxiumum Annual rainfall of 700 mm
 Soil containing 45-65% sand
 Annual sunshine 2000 hrs
 Altitude of 1100-2200 masl
 Land facing north –south (DAFF, 2010).
From GIS mapping 13,803. 525 ha area in 10 districts of Nepal,
Dolpa, Humla, mugu Kalikot, Jumla, Bajhang, Bajura and Rukum
are suitable for commercial olive cultivation (Krishi weekly,
2017).
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11. High internal demand and export potential
0
50,000
100,000
150,000
200,000
250,000
1994 2009 2010 2011 2012 2013 2014 2015
Importworth(US$)
Year
Trend of olive oil import in Nepal
UN data,2016
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12. High internal demand and export potential
contd…
 Acid content less than 1% falls under standard of European
Union, which is being produced in Bajura district
 But olive oil imported in Nepal has upto 3% acidity and still
marketed as extra virgin oil (krishi weekly, 2017)
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13. Technology development
 In Chitlang and Kolti grafting technique has successfully been
started
 Such grafted plants are found high yielding and resistant to
root and shoot rot disease
 Also olive processing plant have been established in these
areas by Himalayan plantation Pvt. Ltd (FDD, 2006).
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14. Uplifting economic standard
 Only 5% of total local population of Bajura district is able to
feed with local products in a year (Parajuli, 2006).
 Olive oil costs rupees 2500 – 3000 in Nepalese market
 Gives good production for 400 years
 Does not compete with other major crops
 Also, the timber can be used as fuel, leaves as fodder, oil cake
can be made to brickets (MOFS, 2002)
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15. Industrial development and Employment
generation
 60% of annual cost in olive cultivation is invested in labour
 Olive oil production and processing industry have high
potential
 Ayurvedic medicines, perfumes, soap cream and other
cosmetic products can be made (FDD, 2006)
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16. Government activities
 Under fruit development directorate olive promotion
programme has been launched from fiscal year 2072/73
 In fiscal year 2073/74 budget ,olive production is given much
importance and required budget has also been allocated
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17. Challenges
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18. Subsistence Farming
 Each farmer grows most of the crops as per need of his family
 The scattered form of farming imposed a greater constraint in
marketing of olive
 The low volume of products and absence of consolidated
marketing system create the great setback for export (Thapa &
Dhimal, 2017).
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19. Lack of Physical Infra-structure
 In remote areas inaccessibility to the road is the major problem
 In Hetauda a decrease in 85% yield is reported in year 2073
compared to last year, the major cause being untimely rainfall
(Bista, 2016)
 Olive need to be processed witin few hours of harvesting but
due to few processing plants and that also being inaccessible
to all farmers quality of olive is low (Niaounakis & Halvadakis,
2006)
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20. Human Resource Management
 In Nepal the well trained manpower are not enough. There is
lack of subject matter specialists (SMS) in olive.
 In the field of postharvest handling and processing skilled
manpower is still lacking (FDD, 2006).
 Overseas job creates shortage of youth labor in the country as
well (Thapa & Dhimal, 2017).
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21. Lack of consciousness among farmers
 Farmers lack technical how on commercial olive cultivation
and processing
 People are unaware about oil extraction from olive and are
using olive plants for fodder, firewood, and timber (DOAE,
2073).
 Improper harvesting is also a major problem in quality of olive
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22. Inefficient government approach
 Though government amends plans and policies, they are not
implemented fully
 Non recommended varieties which do not suite climatic
conditions are being recommended by government officials in
Bajura district (Nagarik News, 2074 BS)
 Bauder a olive farmer in Makwanpur says ”Nepal is not really
friendly to foreign investors, it's very difficult to get approvals,
there is lots of unnecessary running around" (Nepali Times,
2012)
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23. Conclusion
 Climatic suitability, high internal demand and export potential,
technology development, social value ,uplifting economic standard,
industrial development and employment generation and government
activities were identified as possible prospects of olive cultivation in
Nepal.
 Similarly Subsistence Farming, lack of Physical Infra-structure,
human Resource Management, low Priority in Investment, lack of
consciousness among farmers and inefficient government approach
were identified as challenges of olive cultivation in Nepal.
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24. Conclusion contd..
 Nepalese olive has high potential in national and international
market but still is in womb stage
 Olive can be solution to uplift economic standard of Far-west
and mid-west
 Branding of extra virgin organic olive oil of Nepal is necessary
 Proper marketing channel need to be identified
 Government activities needs to be implemented at grass root
level.
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