A Green Investment with Taste: Olive Trees

Sept. 7, 2010 - PRLog -- An interesting and profitable green investment opportunity is in the Mediterranean Basin in the country of Algeria. The government of Algeria is engaged in a project to plan one million hectares (2.5 million acres) of olive trees throughout the country. A Spanish company, Espacios Verdes (Green Spaces) is taking part in this program through an Algerian subsidiary, Dessert Vert. Dessert Vert will be allocating a third of its planting for an investment program in order to capitalize its part in this green program aimed at increasing Algeria’s olive production, improving processing infrastructure, and increasing the export of high quality olive oils. In world concerned with planting trees instead of cutting them down this project is a profitable means of planting trees as well as providing employment, and making some really good olive oil in the process.

Olive Oil and the Mediterranean

The olive as a fruit and its oil are as old as civilization around the Mediterranean Sea. Today the countries around the Mediterranean Sea produce 95% of the world’s olive oil. The countries around the Mediterranean also consume 77% of the world’s olive oil. The worldwide market for olive oil is increasing. Worldwide olive oil consumption doubled in the 1990’s and according to reliable estimates will have tripled between 2000 and 2020. Thus, there is a substantial and growing market for olive oil beyond its historic region. Algeria’s program is expected to capitalize on increasing demand for olive oil by putting more land into production and upgrading processing facilities.

Dessert Vert Project

Besides taking part in the Algerian government’s olive tree planting project Dessert Vert will also build a modern processing plant in Algeria. The subsidiary of Espacios Verdes (registered in Elche Spain), will plant 1,500 hectares (3,750 acres) with olive trees. The company will plant the hyper intensive arbequinia olive tree variety. The arbequinia can be planted 1,780 trees to a hectare. This variety begins to bear fruit at three years instead of five, the usual waiting time for olive trees. This variety can typically produce 11,000 kilograms of olives per hectare. The olives typically yield 19% oil. Thus a hectare of arbequinia olive trees will produce 11,000 x 0.19 = 2,090 liters of olive oil.

Out of Desert Vert’s 1,500 hectares of planted olives it is allocating 500 hectares for the benefit of private investors. Investors will be allotted one hectare and will be paid interest on their investment for the first two years. Thereafter investors will be paid a reduced rate of interest and $2 US for each liter of olive oil produced from their hectare through ten years. At that time their initial investment will be returned. As Dessert Vert will pay investors for the olive oil their hectare produces, the investor will have not a risk associated with the price of olive oil nor the export and sale of the same. Dessert Vert estimates that an investor will earn an average of 11.4% per year on their investment during years 3 to 10 and will double their money over the time span of the ten year investment. Investments will be accepted in increments of $49,630 and will entitle the investor to the benefits of olive oil production from one hectare.

Project Size

This green project in its entirety will plant a million hectares. If put together in one block that would amount to a square a hundred kilometers on a side. This is a lot of land but one must remember that Algeria is the largest nation bordering on the Mediterranean, the second largest in Africa after the Sudan, and the eleventh largest in the world.

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