Olive Oil Without Borders III: Building Regional Support for Reconciliation and Economic Cooperation

NEAR EAST FOUNDATION Partners for Community Development since 1915

Final Report September 29, 2016 – January 31, 2019

Near East Foundation

WEST BANK/GAZA: Trust Building – 3rd Floor, Nablus Tel: +970 9 2396961× Fax: +970 9 2396965

NEW YORK: 110 West Fayette Street, Suite 710 Syracuse, NY, USA 13202 × (315) 428-8670 www.neareast.org

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

TABLE OF CONTENTS

TABLE OF CONTENTS ...... 1

ABBREVIATIONS AND ACRONYMS ...... 2

I. EXECUTIVE SUMMARY ...... 3

II. PROGRAM OVERVIEW ...... 4

III. ACTIVITIES AND ACCOMPLISHMENTS ...... 5

IV. PROGRESS AGAINST WORK PLAN ...... 18

V. CHALLENGES, LESSONS LEARNED, AND OPPORTUNITIES ...... 18

VI. SUSTAINABILITY ...... 19

VII. PROJECT INDICATORS & IMPACT ...... 20

APPENDIX A: OLIVE OIL WITHOUT BORDERS III-YEAR 3 WORK PLAN ...... 27

APPENDIX B: PROFILE OF LEAD FARMER—TAREQ SMADI ...... 29

APPENDIX C: PROFILE OF JORDANIAN LEAD FARMER – MARYAM FREIHAT ...... 30

APPENDIX D: FEMALE JORDANIAN LEAD FARMER WORKS TO IMPROVE OLIVE PRODUCTION IN JORDAN ...... 31

APPENDIX E: GEO-MIS/ TRAINET ...... 33

ANNEX F: OLIVE OIL MARKETING REPORT ...... 40

This publication was produced for the review of the United States Agency for International Development (USAID). It was produced under the Olive Oil Without Borders III: Building Regional Support for Reconciliation and Economic Cooperation, implemented by the Near East Foundation.

This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the Near East Foundation, and do not necessarily reflect the views of USAID or the United States Government.

Cover Photo: Olive trees in the West Bank.

Near East Foundation 1

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

ABBREVIATIONS AND ACRONYMS

FFS Farmer Field Schools

GDP Gross Domestic Product

GIMI Galilee International Management Institute

IOOC Israeli Olive Oil Council

NCARE National Center for Agriculture Research and Extension (Jordan)

NEF Near East Foundation

NGO Non-Governmental Organization

OOWB Olive Oil Without Borders

PARCC Program for the Advancement of Research on Conflict and Collaboration

PCARD Palestinian Center for Agriculture Researches and Development

POOC Palestinian Olive Oil Council

ToT Training of Trainers

USAID United States Agency for International Development

Near East Foundation 2

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

I. EXECUTIVE SUMMARY The Olive Oil Without Borders III: Building Regional Support for Reconciliation and Economic Cooperation (OOWB III) brought together Israeli, Palestinian, and Jordanian olive oil value chain actors to foster economic collaboration and opportunity in the sector. Joint trainings, cross-border activities, and roundtables helped to bring together actors in the olive oil sector. More than 800 olive oil actors participated in more than 30 project activities designed to build mass support for peace and reconciliation. As a result of these activities, 97% of participants surveyed agreed that they had a better understanding of the other that helped in changing their attitude positively. This final project report provides an overview and analysis of the project, its activities, and its key impacts. The project ended early on January 31, 2019, as USAID West Bank and Gaza ceased operations. Key accomplishments from the final project period from October 1, 2018 - January 31, 2019 include the following: • 30 farmers (including 8 women) participated in peer-to-peer training sessions in Jordan, where they learned about improved olive production techniques. • 272 in kind grants of stainless-steel tanks distributed to farmers to improve olive oil storage. • 17 women’s microenterprise grants distributed. • Cross-border roundtable on olive oil trade facilitation held, bringing together 28 individuals to discuss ways to improve cross-border trade. The group drafted a list of recommendations to improve trade, which could be used as the source for a policy paper. Key accomplishments over the full project life cycle (September 29, 2016 – January 31, 2019) include the following: • Cross-border launch workshop. Workshop held in Amman in early 2017 with 40 farmers, mill owners, traders, olive oil association members, and other key stakeholders to officially launch the third phase of the Olive Oil Without Borders project. The workshop fostered dialogue on common issues in the olive oil value chain and developed cross- border networks. Outreach events in Jordan also introduced the project to potential participants. • Cross-border training workshops. Trained 58 new lead farmers (17 Palestinians, 20 Israelis, and 21 Jordanians) from 37 villages about new olive cultivars and technical information related to fertilization, irrigation, and modern technologies. • Farmer field schools in Jordan. The project established four Farmer Field Schools in Jordan to evaluate current production and demonstrate improved practices to farmers. The project team conducted a number of field visits, tracking production, soil samples, water retention, and use of organic fertilizer—comparing areas using usual farming techniques and those that use improved techniques, fly traps, irrigation, etc. • Peer-to-Peer Sessions. 440 farmers participated in peer-to-peer sessions, where they were introduced to olive production best practices and techniques for organic and premium olive oil production. These meetings also helped to generate a sense of shared

Near East Foundation 3

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

economic interest and support for cross-border collaboration • In Kind Grants. Distributed 480 in kind grants (201 to Jordanian participants, 119 to Israeli participants, and 160 to Palestinian participants). These included 81 ladders and 80 pruning shears to farmers in Jordan, and 442 stainless steel tanks for oil storage, and 27 motor saws for farmers in Israel and the West Bank. • Women Agronomists Training. 30 women agronomists from the West Bank, Israel and Jordan participated in a two-day cross-border workshop in August 2018 focused on developing opportunities to improve women’s farming. • Mill Owner Trainings & Mill Renovations. In its first year, the project hosted a cross- border workshop in Jordan for 43 mill owners. In the second year, NEF organized one cross-border field visit for 31 participants in Jordan to visit Zyoud Mill and Zyoud farm in Al Azraq. The project worked closely with partners and mill owners to select mills for renovation support. The project completed renovations at 20 mills in the West Bank. • Cross-border roundtable. The project hosted a meeting between traders in Jordan, Israel and the West Bank to discuss the main obstacles in cross-border trade. The participants sat in groups and provided recommendations to be used in a policy paper. • Cross-border trade meetings. The project hosted two meetings between traders, mill owners, and farmers, most representing their own medium enterprises focused on pressing and/or trading olives and olive oil products. 36 participants from the three regions joined these meeting (19 unique participants), where they were able to discuss cross-border trade and share ideas, opportunities and challenges. • Establish women’s cooperatives. The project arranged a field trip in Jordan for women’s cooperative members to visit three women’s cooperatives in Jordan. After the field visits, representatives participated in microenterprise development trainings. 30 female project participants received grants to establish microenterprises. II. PROGRAM OVERVIEW Building on the success and momentum of the USAID-funded Olive Oil without Borders (OOWB) project, NEF aims to expand previous iterations of the project, OOWB I and II, to new communities in Israel and the West Bank and to Jordan. The OOWB III project planned to work with 1,000 olive farmers in 37 communities in Israel, the West Bank and Jordan to (1) expand economic cooperation between farmers, mill owners, and distributors; (2) build working relationships between business and policy leaders through cross-border workshops and joint initiatives that will facilitate trade and mutual understanding; and (3) develop 30 women-owned businesses through cross-border collaboration between women’s cooperatives. Olive Oil Without Borders III (OOWB III) is based on the hypothesis that cross-border economic cooperation offers a structured, depoliticized process for building trust, mutual understanding, and capacity for collective action in pursuit of shared interests. NEF takes a value chain approach to strengthen the olive oil sector in which stakeholders at many levels (farmers, distributors, policy-makers) work together to strengthen a sector as a whole; the win- win solutions that emerge build mutual understanding, trust and social capital. Economic

Near East Foundation 4

Olive Oil Without Borders III No. 294-A-16-00011 Final Report cooperation has spillover effects on other aspects of social and political life. Strengthening business relationships lays the groundwork for four necessary components of reconciliation: (1) a more inclusive environment that becomes more conducive to exchange and cooperation; (2) a new narrative about the ‘problems’ and ‘the other’ that is ultimately more conducive to collaboration and trust; (3) a shift in behavior from positional bargaining to interest-based negotiation; and (4) more rational and deliberative forms of expression in place of heightened emotional reactions to conflicts. III. ACTIVITIES AND ACCOMPLISHMENTS A. Objective 1: Relations of trust, mutual understanding, and collaboration between Israeli, Palestinian, and Jordanian olive oil producers increased. Activity 1.1. Conduct one cross-border launch workshop to engage 60 olive producers in the OOWB III project. A cross-border launch workshop was held on January 17, 2017, in Amman, Jordan, with the participation of 40 Palestinian, Israeli, and Jordanian farmers, mill owners, traders, and other key stakeholders to launch the OOWB III project (50 participants including staff and partners). This workshop brought together olive actors from all targeted sides to discuss and officially launch the third phase of the project, building dialogue on common issues in the olive oil value chain and developing cross-border networks. NEF and partners, with the support of USAID, introduced the new project – and provided an overview of achievements and impact through the previous phases of the Olive Oil Without Borders projects. Representatives from the Palestinian Olive Oil Council (POOC), Israeli Olive Oil Council (IOOC), and Jordan Olive Products Export Association (JOPEA) discussed the current situation and challenges facing farmers, mill owners, and traders in their respective areas. Participants were engaged in asking questions and discussing cross-border collaboration. Muhammad Hamodi, a farmer from Asira, shared his results from OOWB project. “My farm increased olive production by 650% and olive oil production by 800% as a result of using new technology such as pest traps and integrated irrigation,” Hamodi said. His statement, along with others from project team members and participants in past phases, helped to encourage interest in the OOWB III project and new technologies.

Discussions during the OOWB III Launch Workshop in Amman.

Near East Foundation 5

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Activity 1.2. Conduct cross-border training workshops to instruct 20 Palestinian, 20 Israeli, and 20 Jordanian lead farmers in technical and conflict management skills. The project team recruited 58 new lead farmers (17 Palestinians, 20 Israelis, and 21 Jordanians) from 37 villages, with selection criteria based on residency, olive sector participation, willingness and interest in participation, willingness to travel, and willingness to promote gender inclusion. Lead farmers were then responsible for training their fellow farmers in peer-to-peer activities. The project hosted Training of Trainers workshops for 58 unique lead farmers distributed as shown in the table below:

Citizenship Male Female Total Israeli 16 4 20 Palestinian 10 7 17 Jordanian 12 9 21 Grand Total 38 20 58

In these events, lead farmers were introduced to new olive cultivars and technical information related to fertilization, irrigation, and modern technologies. The farmers also discussed the sensory characteristics of olive oil and learned how to check the quality of the oil by tasting. During the second year of the project, the project team provided support to lead farmers as they organized and hosted peer-to-peer training activities. The following charts show the distribution of participants in the ToT events in Israel and Jordan:

Gender Distribution Nationality Distribution

34% 36% 35% Israeli Male Palestinian Female Jordanian 66% 29%

Near East Foundation 6

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Lead Farmer training in Israel. Lead Farmer training in Israel.

Lead farmer training in Jordan. Lead farmer training in Jordan.

Activity 1.3. Expand participation in cross-border olive activities in 37 new communities in the West Bank, Israel and Jordan through joint training, joint technical assistance, and material support. Activity 1.3.a. Establish two new farmer field schools in Jordan. Four farmer field schools were established in Jordan. In the first year of the project, farmer field schools were established in Ajloun (owned by a woman) and in Jerash. Irregular weather in the region during the first year of the project led to low olive productivity. In part to address this low production, the project team established two other farmer field schools in neighboring villages in Jordan. The field schools were provided with technical agricultural advice and daily climate monitoring. The project team supported the farmers in monitoring the budding flowers and fruit. In addition, the project provided guidance in the installation of rain barrels for supplementary irrigation and fly traps.

Near East Foundation 7

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Farmer Field Schools – Jordan # Name of farm owner Governorate Village Gender Land Area Number of Trees 1 Ahmad Hussein Fandi Jerash Hmmta Male 28 dunums 100 AlShorman 2 Fatima Hasan Mohammad al Ajloun Um Female 35 dunums 100 Smadi Alkhashab New Farmer Field Schools – Jordan

1 Mohammad Mustafa Husni Jerash Al-Jabarat Male 10 dunums 100 Abumelhim 2 Etaf Fozat Hussien Alfrehat Ajloun Kafranja Female 19 dunums 100

Activity 1.3.b. Peer-to-Peer Sessions Lead farmers facilitated peer-to-peer training sessions for local farmers. Over the course of the project, 470 farmers participated in training sessions. Participating farmers gained knowledge on the appropriate timing for pruning, irrigating, plowing, and harvesting. Farmers were also taught about the health benefits of olives and olive oil, to help them in promoting their product. During the last period of the project, from October 1, 2018 –January 31, 2019, 30 farmers participated in peer-to-peer training sessions, which focused on new technologies for olive farming, irrigation techniques, and olive tree care specific to each of the four seasons. The following tables show the gender distribution for the attendees in peer-to-peer sessions, as well as an overview of all sessions held to date.

Near East Foundation 8

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Peer-to-Peer Sessions October 1, 2018 – January 31, 2019 Nationality Male Female Total West Bank 0 0 0 Jordan 22 8 30 Israel 0 0 0

Total 0 0 30

OOWB III Peer-to-Peer Sessions (all participants; not necessarily unique) Date Location Men Women Youth Total 2/4/2017 Nazareth (Israel) 3 14 2 17 4/5/2017 Wadi Ara (Israel) 10 8 -- 18 Kofr Zibad 8/5/2017 (Tulkarm) 13 7 7 20 10/5/2017 Jordan 22 12 -- 34 10/5/2017 Jordan 7 11 -- 18 12/5/2017 Jordan 12 5 1 17 25/5/2017 Nablus 11 4 5 15 Hamta (Jerash) 31/5/2017 Jordan 19 3 7 22 13/7/2017 Jordan (Anjara) 9 7 -- 16 Y1 Subtotal 106 71 22 177 02/1/2018 Jordan (Jazaza) 17 8 3 25 03/01/2018 Jordan (Anjara) 8 8 1 16 19/02/2018 Jordan (Anjara) 16 9 5 25 22/02/2018 Jordan (Ein Jana) 24 1 1 25 22/02/2018 Jordan (Ein Jana) 22 1 1 23 Jordan 24/2/2018 (Khushaiba) 8 9 5 17 24/02/2018 Jordan (Jazaza) 0 26 7 26 Jordan 28/02/2018 (Khushaiba) 5 13 5 18 Jordan (Om 14/03/2018 Khashab) 9 8 2 17 West Bank 02/04/2018 (Jenin) 15 0 6 15 West Bank 19/04/2018 (Tulkarm) 9 11 20 20 West Bank (Bet 30/08/2018 Dajan) 20 0 12 20 West Bank 13/09/2018 (Shufeh) 16 0 13 16 Y2 Subtotal 169 94 81 263 Jordan 22 8 30 Y3 Subtotal 22 8 30 TOTAL 297 173 103 470

Near East Foundation 9

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Peer-to-Peer training session held in Jordan. Activity 1.3.c. In Kind Grants The project team conducted a needs assessment with participating farmers to determine what farmers need during the harvest season. The project distributed 480 in kind grants (201 to Jordanian participants, 119 to Israeli participants, and 160 to Palestinian participants). These included 81 ladders and 80 pruning shears to farmers in Jordan, and 442 stainless steel tanks for oil storage, and 27 motor saws for farmers in Israel and the West Bank.

Activity 1.3.d. Two day cross border workshop on improved olive mill management. The project recruited 43 mill owners to participate in a two-day cross border workshop in Jordan starting on the 13th of September 2017. The mill owners were trained on best practices in mill management, promoting quality olive oil production through the use of new knowledge and technology. Experienced mill-management trainers from Israel shared videos and pictures of successful mills that used new technology and how that affected the quantity and quality of oil produced. They also trained mill owners to taste oil to make sure that their oil has good sensory characteristics.

Mill Owner Training participants.

Near East Foundation 10

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Activity 1.3.e Improved Olive Mill Management The project supported mill owners in upgrading their facilities and management practices to improve production. Mill owners were provided with grants averaging $4000, and were required to provide a 1:1 cost match (~$4000). The project identified 27 mills for renovation (11 in the West Bank, 3 in Israel, and 13 in Jordan). By the end of the project, 20 mill renovations were completed. Slight delays in renovations were experienced as this work often involved more than one contractor in different construction areas. Mill renovations were completed in the following locations: # Mill Name Location Renovations Status 1 Bet Imrin Modern Mill Nablus, Bet Imrin Building Maintenance Done 2 Ramin Moder Mill Tulkarm, Ramin Building Maintenance Done 3 Olive Pressing Nablus, Bidya Stainless Steel 6t Tank Done Association 4 Zuhair Kasbari Zababda Stainless Steel 6t Tank Done 5 Muhammad Taher Silfeet Building Maintenance Done Snunu 6 Hatem Odeh Kofr Tholth Stainless Steel 6t Tank Done 7 Khader Saed Baqa Sharqiya Building Maintenance Done 8 Kafranja Mill Kafranja Stainless Steel 6t Tank Done Cooperative 9 Kafranja Mill Kafranja Stainless Steel 6t Tank Done 10 Salam Modern Mill Ajlun Stainless Steel 6t Tank Done 11 Jordanian Oil House Mill Salt Stainless Steel 6t Tank Done 12 Dajani Modern Mill Jarash Stainless Steel 6t Tank Done 13 Barma Mill Barma Stainless Steel 6t Tank Done 14 Zahr Zaytun Mill Mafraq Stainless Steel 6t Tank Done 15 Altur Mill Ma’an Stainless Steel 6t Tank Done 16 Ramtha Mill Ramtha Stainless Steel 6t Tank Done 17 Alya Mill Amman Stainless Steel 6t Tank Done 18 Salma Mill Mafraq Stainless Steel 6t Tank Done 19 Zyud Modern Mill Azraq Stainless Steel 6t Tank Done 20 Al Hashemeyye Mill Hashemeyye Stainless Steel 6t Tank Done

Activity 1.3.f Cross-Border Workshop with Women Agronomists NEF conducted a 2-day cross border workshop for women agronomists in Jordan (August 13-14, 2018). Gathered in the Dead Sea, the training brought together 30 women agronomists (9 Israeli, 11 Palestinian, and 10 Jordanian; 24 youth). The workshop covered the following topics: the olive and olive oil sector in the region, alternate bearing for olive trees, and olive cultivates and pest control. The variety of problems faced by these agronomists in Israel, the West Bank, and Jordan provided a platform from which to share and discuss with farmers from across the border.

Near East Foundation 11

Olive Oil Without Borders III No. 294-A-16-00011 Final Report Rana Al Momani provided an intensive training for women agronomists about the sensory characteristics of olive oil and factors that affect olive oil quality. Rana trained the agronomists on how to recognize good quality olive oil by taste, to help the agronomists work in the quality control of olive oil.

Women Agronomist Training

Activity 1.3.g Cross Border Field Visit On August 15, 2018, NEF organized a cross-border field visit for project participants; this visit was linked to the women’s agronomist training. 31 participants (10 Israeli, 10 Palestinian, 11 Jordanian; 21 youth) gathered in Jordan to visit Zyoud Mill and Zyoud farm in Al Azraq. Osama Zyoud is a very experienced farmer who invited OOWB III participants to visit his farm and mill in Al Zarqa. He shared his experience in both cultivating olive trees and pressing olives in the mill. The participants were glad to be introduced and share experiences with Mr. Zyoud.

Near East Foundation 12

Olive Oil Without Borders III No. 294-A-16-00011 Final Report B. Objective 2: Promote cross-border cooperation and leadership through joint trade promotion for organic and premium olive oil. Activity 2.1. Host cross-border roundtables for Olive Oil Council/Directorate, Ministries of Agriculture, and women’s cooperatives for joint action on trade facilitation. The project hosted a cross-border roundtable for trade facilitation on December 23-24, 2018. The roundtable brought together 28 olive oil traders and company representatives (8 Jordanian, 8 Palestinian, 12 Israeli) (19 men, 9 women).

Participants discussed the different obstacles facing cross-border trade between Jordan, Israel and the West Bank. Participants discussed the current situation and thoughts on future developments. Participants engaged in group assignments to summarize their recommendation to optimize and facilitate cross-border trade and cooperation. Recommendations included the following: • Conduct periodic joint meetings to assess results and promote cross-border trade. • Form a joint committee for testing the olive oil that is exported/imported between the regions. • Form joint olive oil tasting team. • Form a joint team and provide training by Italian experts to test the quality of the olive oil and on olive tasting. • Conduct joint field visits to olive presses, mills and olive oil laboratories, in order to learn and exchange experience. • Plan for a joint visit to Israel and visit high density olive groves and different olive varieties that can be planted in the high-density farms and test their quality. • Plant different olive varieties in the three regions for study and control purposes • Form a committee to assess the effect of climate change on the olive sector. Develop and promote adaptation techniques that minimize seasonal loss. • In order to support the development of olive mills, participants discussed the importance of minimizing taxes in the mill sector.

Near East Foundation 13

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

• Develop a plan for reusing/recycling olive mill residue. • Conduct joint research and prepare a plan for the next 5 years based on research results • Separate politics from the economic situation and support decisions related to importing and exporting. • Discuss the possibility of exporting Israeli olive oil through West Bank and Jordan.

Activity 2.2. Conduct cross-border meetings between medium to large olive oil companies on joint coordination for export of organic and premium quality olive oil. Olive Oil Marketing Support In the first year of the project, olive oil marketing expert Charlie Stathacos worked with the project and partners to provide recommendations for the improved marketing of oil. Mr. Stathacos met with a number of value chain actors, providing initial brainstorming and recommendations to improve the marketing of olive oil and olive oil products. These recommendations were finalized in a revised marketing report (See Annex F) and an action plan for project marketing activities. Conflict Management Skill-Building The project also conducted a conflict management training with Olive Oil Without Borders project team members and partners to provide them with the skills to share with project participants. The OOWB III Conflict Analysis and Management Workshop took place in Jordan from August 6 to August 9, 2017, led by Syracuse University Program for the Advancement of Research on Conflict and Collaboration (PARCC) Director Catherine Gerard and PARCC Associate A. Peter Castro. The training opened with two days of participatory classroom-based activities, which occurred in Amman. Importantly, the training was not presented as a top-down transfer of technology but as a dialogue in which skills and tools were discussed with direct consideration for their relevance and possible application within the context of OOWB III. Thus, the skills, tools, and strategies that emerged from the workshop were an outcome of mutual learning on the part of both the training facilitators and the trainees. Specific topics and skills during the two days included conflict styles, skills for de-escalating conflict such as reflective listening, conflict analysis (including stakeholder analysis, gender analysis, and root-cause analysis), interest-based negotiations, mediation, and facilitation procedures such as icebreakers and brainstorming.

Near East Foundation 14

Olive Oil Without Borders III No. 294-A-16-00011 Final Report The third day of the workshop consisted of an in-field training near Jerash, where trainees met with local olive growers participating in the project. The trainees were divided into three groups which collected information from the assembled men and women. The experience proved valuable not only as a means of applying what had been discussed the prior two days, but also in offering deeper insights into the on-the-ground perspectives, concerns, and priorities of the project participants themselves. The value and importance of in situ and participatory approaches were strongly reinforced, as well as the need for conflict sensitivity in data collection and other project activities. The workshop participants ably demonstrated their grasp of these issues on the final day of the training, held in Amman, where they reported on their findings from the field visits, including areas of tensions that need to be examined further as part of project activities. They also considered how the field interviews helped distinguish the underlying interests and needs of the project growers, versus simply identifying bargaining positions. Being able to recognize and deal in an inclusive manner with tensions and conflicts is a vital aspect of fostering trust and strengthening the context for reconciliation.

Cross-Border Meeting In the project’s second year, two traders meeting were conducted with a total of 36 participants (19 unique participants). These meetings work to create a platform for mutual understanding, encourage collective action, and introduce conflict resolution and interest-based negotiation skills. Participants included the following:

Near East Foundation 15

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Grand Nationality Male Female Total Israeli 10 0 10 Palestinian 16 3 19 Jordanian 7 0 7 Grand Total 33 3 36

A cross border meeting between traders, mill owners, and farmers was conducted in Quarter 9 (see Activity 2.1).

Palestinian women visiting Jordanian women associations

Near East Foundation 16

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Activity 2.3. Establish 30 women’s cooperative microenterprises for value-added olive products. 30 female project participants have received grants to establish their microenterprises in Jordan.

Jordanian Enterprises Established

No. Name Project

1 Amal Nahar Smadi Olive Pickling 2 Sumaya Momani Essential oil extraction and soap manufacturing 3 Ghada Qudah Pickling and Salad 4 Nawal Smadi Soap manufacturing 5 Jamila Smadi Soap manufacturing 6 Mariam Freihat Soap manufacturing 7 Fatheyye Smadi Pickling and Fresh Yogurt 8 Hadya Syuf Filling and Packaging 9 Muna Assi Pickling and Thyme 10 Raghda Momani Soap manufacturing 11 Intisar Kharyosh Pickling 12 Laila Kharyosh Pickling 13 Zainab Momani Different olive products 14 La`lai Mashaqi Sheep breeding using olive peat 15 Nivin Abu Omar Planting olive trees 16 Mona Abd Al Haq Planting olive trees 17 Ayda Blan Kitchen and food production made from olive oil 18 Kleir king Lezman Traditional dishes using olive oil 19 Shifa Younis Pickling and Yogurt 20 Buthaina Younis Pickling and Thyme 21 Nourit Gari Hope Kiosk (traditional dishes using olive oil) 22 Firyal Gharib Pastries 23 Hana Matar Soap manufacturing 24 Najah Harish Pastries and Thyme 25 Faida Dweikat Olive seedlings 26 Lara Jarar`a Pickling 27 Balasim Dweikat Pastries and thyme 28 Amira Ali Planting olive trees 29 Iman & Kamelia Gharib Planting thyme 30 Najma Qadan Pastries

Near East Foundation 17

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

IV. PROGRESS AGAINST WORK PLAN The Olive Oil Without Borders III project made progress as projected against its implementation plan. A chart measuring progress against the work plan can be found in Appendix 1.

V. CHALLENGES, LESSONS LEARNED, AND OPPORTUNITIES The Olive Oil Without Borders project ended early on January 31, 2019, as USAID West Bank/Gaza ceased operations, with a little over a month to prepare for project closure. As a result, a number of activities and follow-up surveys/monitoring could not be completed in this limited timeframe. Over the lifetime of the project, the uncertainty and instability of the political situation in the region impacted project implementation and resulted in a number of challenges. Some olive oil actors were unwilling to participate in project activities due to the political situation. News regarding U.S. government aid cuts to Palestinians made some hesitant to participate in the project. Others refused to join out of protest following the U.S. recognition of Jerusalem as the capital of Israel. The team was unable to bring Jordanian participants to visit Israel and the West Bank. Moreover, Israeli participants preferred only to travel to the Dead Sea area of Jordan, due to security concerns. This situation compelled the project team to conduct many activities in the Dead Sea region, thus exceeding the forecasted budget for some activities due to the higher cost of hotels in the area. Given these challenges and high costs of organizing regional activities, the project team noted that holding activities with participants from two of the areas (for example, Israelis and Jordanians)— rather than all three at the same time—could reduce challenges and costs, while fostering cooperation in smaller groups. Also, conducting multiple activities during the same gathering was found to be a helpful way to reduce costs and the challenges of organizing cross-border activities. Because of the situation, the project also faced challenges in engaging the ministries of agriculture in each targeted area. The project found alternatives in working with community based organization, farmers unions, producers unions, and other representatives that can influence the ministries in changing policies to support the mutual collaboration. Conflict mitigation in the target areas continued to be challenging. The project team worked to learn and gain valuable experience to enable the team to make the project as successful as possible given these challenges. The project team faced challenges in surveying Israeli participants. Our consultant in Israel reported that participants were unwilling to participate in the surveys for reasons that are unclear but perhaps related to political and economic and tax related matters. As end-line surveys could not be implemented, information related to project impact indicators is limited.

Near East Foundation 18

Olive Oil Without Borders III No. 294-A-16-00011 Final Report The program team noted that participants were interested in cross-border trading, research, and new technology research. This interest should be considered in the development of future programming. VI. SUSTAINABILITY Project interventions were designed to embed project outcomes in systemic change and promote sustainability. The project worked to demonstrate (the value of trade facilitation that addresses common challenges with shared solutions; (2) formalizing collaborative approaches through policy reform and systemic change (e.g., joint policy roundtables, cross-border business meetings) that reduces barriers to cross-border trade; (3) changing the attitudes of large groups of people – producers, mill owners, and distributors – by building trust and mutual understanding between them and; (4) building the capacity of leaders (business leaders, lead farmers and Champions). The project created linkages and cross-border relationships that can continue to build mutual understanding and promote cross-border cooperation. The project fostered relationships between different olive actors, including JOPEA, IOOC, and POOC. The project also created a network of oil traders across the borders, and initiated technical collaboration by creating linkages between research centers and farmer field schools in Israel, the West Bank, and Jordan. The project built the capacity of staff at the Jordanian Ministry of Agriculture, who, as a result of the project intervention, have developed their agricultural and technical skills. NEF and PCARD engaged Jordan MoA staff in training sessions organized in Jordan, covering oil tasting, pre- and post-olive harvesting techniques, and mill management. In October 2019, a training course was arranged for 20 Jordanian MoA agronomists in Jerash on olive pruning and mills management. These efforts support the ministry’s work and its cooperation on other projects. NEF, through its offices in the West Bank and Jordan, will continue its efforts to continue activities related to conflict management and agribusiness development in the region.

Near East Foundation 19

Olive Oil Without Borders III No. 294-A-16-00011 Final Report VII. PROJECT INDICATORS & IMPACT The Olive Oil Without Borders III project worked toward the achievement of its goals, using the project Performance Monitoring Plan to measure results. While the project faced a number of challenges in its cross-border efforts that resulted in some delays, the team was able to adapt activities and continue to work towards the project’s objectives. As a result of the early end to the project, a number of indicators are under-target or not measured; end-line surveys were not completed to collect final impact observations.

The Performance Monitoring Plan provided a useful tool to the project for tracking the achievement of activities and objectives. The project has used AKVO Flow to conduct perception surveys and collect key data from project participants.

The project was able to hit and exceed many of its targets. The project faced a number of challenges:

• It has been challenging to attract Jewish-Israeli participants to project activities. As a result, Indicator PI 1d (number of Jewish-Israeli participants) continues to be under-target. While participants are invited and confirm their attendance, they often do not show up for project activities—sometimes due to security concerns. Participants are also less likely to share information about the project with other farmers as a result of sensitivities around participation in cross-border activities. • The current climate has made the regional nature of the project challenging, as it has been difficult to find locations to bring together Palestinian, Israeli and Jordanian participants for activities. In the first year of the project, Jordanian participants were able to come to Israel to attend the activities, and the Palestinians also were able to acquire permits to Israel. However, this changed when the Israeli Embassy was closed in Jordan. The project had to find a different location for regional activities. As Israelis feel unsafe in the West Bank, the project had to move activities to Jordan – although this also presented challenges for Israeli participation. • End-line surveys were planned for the final quarters of the project. As the project ended early, these were not completed and resulted in several indicators not being measured.

Near East Foundation 20

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Chart: Summary of Project Indicators, Targets and Impact

Current Project Project Result Measurement Period Target (Actual) Goal: Build support for PI 1 Number of people participating in USG- conflict mitigation, supported events, trainings, or activities 57 1200 817 reconciliation, and designed to build mass support for peace and collaboration between reconciliation. Israelis, Palestinians, PI 1a Number of men participating in USG- and Jordanians supported events, trainings, or activities 40 900 446 through economic designed to build mass support for peace cooperation. and reconciliation (75% of participants). PI 1b Number of women participating in USG-supported events, trainings, or activities designed to build mass support for 17 300 296 peace and reconciliation (25% of participants). PI 1c Number of youth participating in USG- supported events, trainings, or activities 0 300 97 designed to build mass support for peace and reconciliation (25% of participants). PI 1d Number of Israeli – Jew participants in USG-supported events, trainings, or 12 286 39 activities designed to build mass support for peace and reconciliation. PI 1e Number of Israeli Arab participants in USG-supported events, trainings, or 1 96 183 activities designed to build mass support for peace and reconciliation. PI 1f Number of participants from West Bank in USG-supported events, trainings, or 8 409 170 activities designed to build mass support for peace and reconciliation. PI 1g Number of participants from Jordan in USG-supported events, trainings, or 38 409 391 activities designed to build mass support for peace and reconciliation. PI 2 Number of US funded events, trainings, or activities designed to build support for 2 59 35 peace or reconciliation on a mass scale. PI 3 Percentage of targeted participants who agree that they have better understanding of NA 75% 97% the others that helped in changing their attitude positively. Intermediate Result 1 PI 1.1 Percentage of participants engaged in Relations of trust, cross-border joint initiatives to share mutual understanding technology and expertise. and collaboration between Israeli, 23% 50% 23% Palestinian and Jordanian olive oil producers increased.

Near East Foundation 21

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Current Project Project Result Measurement Period Target (Actual) Intermediate Result 1.1 Producers develop PI 1.2 Percent increase of olive and olive oil cross-border links that 7% 20% 7% production of targeted producers. improve olive and olive oil productivity. Intermediate Result PI 1.3 Number of micro, small and medium 1.2 Capacities of olive enterprises receiving business development 17 30 30 and olive oil producers services from USG assisted sources. enhanced PI 1.4 Proportion of female participants in USG-assisted programs designed to increase 0 25% 27% access to productive economic resources. PI 1.5 Number of in kind grants awarded. 272 712 480 PI 1.6 Number of mill renovations completed. 17 30 20 PI 1.7 Percent of targeted olive and olive 23% 60% 23% oil producers applying new technology. Intermediate Result 2 PI 2.1 Percentage increase of cross border Joint trade of extra olive and olive oil export as a result of 0 25% 36% virgin, organic, and USG assistance. premium olive oil PI 2.2 Cumulative amount of cross-border promoted. 2,200 10,000 5,200 trade of olives and olive oil (in tons).

Intermediate Result PI 2.3 Number of trade facilitation actions. 1 6 1 2.1. Collaboration among Jordanian, Israeli and Palestinian PI 2.4 Number of cross-border olive and olive 1 10 3 policy and decision oil export events. makers enhanced.

PI. Number of people participating in USG-supported events, trainings, or activities designed to build mass support for peace and reconciliation.

Project Project Current INDICATOR Target Actual Quarter PI 1 Number of people participating in USG-supported events, trainings, or 1200 817 57 activities designed to build mass support for peace and reconciliation. PI 1a Number of men participating in USG-supported events, trainings, or activities designed to build mass support 900 446 40 for peace and reconciliation (75% of participants). PI 1b Number of women participating in USG-supported events, trainings, or activities designed to build mass support 300 296 17 for peace and reconciliation (25% of participants). PI 1c Number of youth participating in 300 97 0 USG-supported events, trainings, or

Near East Foundation 22

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

activities designed to build mass support for peace and reconciliation (25% of participants). PI 1d Number of Israeli – Jew participants in USG-supported events, trainings, or 286 39 12 activities designed to build mass support for peace and reconciliation. PI 1e Number of Israeli Arab participants in USG-supported events, trainings, or 96 183 1 activities designed to build mass support for peace and reconciliation. PI 1f Number of participants from West Bank in USG-supported events, trainings, 409 170 8 or activities designed to build mass support for peace and reconciliation. PI 1g Number of participants from Jordan in USG-supported events, trainings, or 409 391 38 activities designed to build mass support for peace and reconciliation. Numbers have been edited to reflect corrections in previous quarters.

PI 2. Number of USG-funded events, trainings, or activities designed to build support for peace or reconciliation on a mass scale.

Project Project Current INDICATOR Target Actual Quarter Number of USG-funded events, trainings, or activities designed to build 59 35 2 support for peace or reconciliation on a mass scale.

PI 3. Percentage of targeted participants who agree that they have better understanding of the others that helped in changing their attitude positively.

Project Project Current INDICATOR Target Actual Quarter Percentage of targeted participants who agree that they have better 75% 97% NA understanding of the others that helped in changing their attitude positively. This indicator is calculated as of the last available project surveys. This is incomplete and under- target due to the early end of the project, which did not allow for the full number of follow-up surveys to be completed.

Near East Foundation 23

Olive Oil Without Borders III No. 294-A-16-00011 Final Report PI 1.1. Percentage of participants engaged in cross-border joint initiatives to share technology and expertise.

Project Project Current INDICATOR Target Actual Quarter Percentage of participants engaged in cross-border joint initiatives to share 50% 23% 23% technology and expertise. This indicator is calculated as of the last available surveys (only 7 surveyed). This is incomplete and under-target due to the early end of the project, which did not allow for the full number of follow-up surveys to be completed.

PI 1.2. Percentage of participants engaged in cross-border joint initiatives to share technology and expertise.

Project Project Current INDICATOR Target Actual Quarter Percent increase of olive and olive oil 20% 7% 7% production of targeted producers. This indicator is calculated as of the last available surveys. This is incomplete and under-target due to the early end of the project, which did not allow for the full number of follow-up surveys to be completed.

PI 1.3. Number of micro, small and medium enterprises receiving business development services from USG assisted sources.

Project Project Current INDICATOR Target Actual Quarter Number of micro, small and medium enterprises receiving business 30 30 17 development services from USG assisted sources.

PI 1.4. Proportion of female participants in USG-assisted programs designed to increase access to productive economic resources.

Project Project Current INDICATOR Target Actual Quarter Proportion of female participants in USG- assisted programs designed to increase 25% 27% NA access to productive economic resources.

• 110 women received in kind grant (out of 480 grantees) • 30 women received microenterprise grants (out of 30 grants) • 140 women/510 grantees = 27%

Near East Foundation 24

Olive Oil Without Borders III No. 294-A-16-00011 Final Report PI 1.5. Number of in kind grants awarded.

Project Project Current INDICATOR Target Actual Quarter Number of in kind grants awarded. 712 480 272

PI 1.6. Number of mill renovations completed.

Project Project Current INDICATOR Target Actual Quarter Number of mill renovations completed. 30 20 17 Mill renovations were completed after the olive harvest season.

PI 1.7. Percent of targeted olive and olive oil producers applying new technology.

Project Project Current INDICATOR Target Actual Quarter Percent of targeted olive and olive oil 60% 23% NA producers applying new technology. This is indicator is incomplete due to the early end of the project, which did not allow for the follow-up and endline surveys to be completed.

PI 2.1. Percentage increase of cross border olive and olive oil export as a result of USG assistance.

Project Project Current INDICATOR Target Actual Quarter Percentage increase of cross border olive and olive oil export as a result of 25% 36% NA USG assistance. This is indicator is incomplete due to the early end of the project, which did not allow for the follow-up and endline surveys to be completed.

PI 2.2. Cumulative amount of cross-border trade of olives and olive oil (in tons).

Project Project Current INDICATOR Target Actual Quarter Cumulative amount of cross-border trade 10,000 5,200 2,200 of olives and olive oil (in tons). Based on information from the IOOC and JOPEA.

Near East Foundation 25

Olive Oil Without Borders III No. 294-A-16-00011 Final Report PI 2.3. Number of trade facilitation actions.

Project Project Current INDICATOR Target Actual Quarter Number of trade facilitation actions. 6 1 1

PI 2.2. Number of cross-border olive and olive oil export events.

Project Project Current INDICATOR Target Actual Quarter Number of cross-border olive and olive 10 3 1 oil export events. 2 events held in the second year of the project, 1 event held in the third year of the project.

Near East Foundation 26

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

APPENDIX A: OLIVE OIL WITHOUT BORDERS III-YEAR 3 WORK PLAN

Near East Foundation P a g e | 27

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation P a g e | 28 Olive Oil Without Borders III No. 294-A-16-00011 Final Report APPENDIX B: PROFILE OF A LEAD FARMER—TAREQ SMADI Tareq Smadi, a farmer from Jerash Governorate (Alkhchibh village), joined the Olive Oil Without Borders III project earlier this year, after learning about the project through initial outreach events. Based on his interest, Tarek was selected to participate in the lead farmer Training of Trainers workshop held in Palestine. With the knowledge he learned as a lead farmer, he now works to train others through peer-to-peer activities and is working as a source of information for olive farmers in Ajlon/Jerash Regions.

“I always participate in OOWB Tareq Smadi leads a peer-to-peer training session in Jordan. farmer activities and I always get new information from these activities,” Tareq said. “I wanted to share this important information with other farmers in my community in peer-to-peer sessions. The highly experienced trainers who trained me through NEF activities made me qualified to train others. The trainers were very cooperative and provided me with training materials to use as a reference and as presentations to use when I train other farmers.” As part of the Training of Trainer activities, Tareq visited Nablus and met with a number of farmers who shared information on their techniques for irrigation and disease prevention. He was introduced to new techniques such as supplementary irrigation and intensive cultivation— some of which he has introduced on his own land. “The information we’ve learned about agricultural diseases was very important. How to diagnose, how to treat, and how to protect trees from such diseases,” Tareq said. “I have used the information I learned from activities in diagnosing and treating some of my trees that had diseases. And I also applied the supplementary irrigation to my trees. But I still have some challenges because it costs money to irrigate and that has a bad influence in the return over investment.”

Near East Foundation 29 Olive Oil Without Borders III No. 294-A-16-00011 Final Report APPENDIX C: PROFILE OF A JORDANIAN LEAD FARMER – MARYAM FREIHAT Maryam Mohammed Freihat (Om Hamza) is a 51-year-old Jordanian woman and mother of seven children, three of whom have disabilities/special needs. She is a lead farmer in the Olive Oil Without Borders III project. As a child, Maryam always dreamed of becoming a decision-maker and active participant in her community. She completed her high school education and received her diploma, though she was unable to pursue a university education due to economic constraints faced by her family. Maryam’s father owned a small nursery and depended on her help to plant seedlings. Economic constraints were common in Maryam’s village of Al-Jazaza in Jarash governorate, as the area lacked essential health and education services and struggled to combat high poverty and unemployment rates. At the age of 21, Maryam married and moved in with her husband and his family. She and her husband experienced economic difficulties and as a result, she began working from home preparing and selling seedlings. Soon after, Maryam gave birth to a baby boy who was born with heart and colon conditions requiring medical treatment. Consequently, she was forced to stop her seedling work in order to focus on childcare. Several years later, Maryam had given birth to seven children, three of whom were born with disabilities. She was constantly occupied with the tasks of providing childcare and finding proper medical treatment for her children, the latter of which was particularly challenging as health services had deteriorated in her region. Maryam sought a way to simultaneously provide for her family and better her community. Along with a group of local women who shared the same goal, Maryam was able to establish a cooperative association entitled “Al-Jazaza Women’s Association” to serve the local community. When the cooperative was established, Maryam was a member of the association’s public body. She soon became a member at the administrative body and eventually took on the role of cooperative president after gaining the trust of her community. Due to Maryam’s experience, she understands the challenges and constraints faced by her fellow community members and is therefore well- positioned to provide effective support. Maryam first encountered the Near East Foundation (NEF) through the association’s contact with the Olive Oil Without Borders III project. She was immediately interested in the project, as it overlaps with her previous experience in the agricultural sector. She started attending the cross- border training sessions, beginning with a session held in Nazareth. Initially, she was hesitant about participating in joint training, as she had never worked with Israeli women. But after participating in multiple training sessions and several cross-border visits, Maryam stated “The people I met were very nice and friendly. Working with them has been easy from the start and I have not felt any bad emotions towards me even though I wear a niqab.” Maryam has been able to develop new relationships and friendships with her Palestinian and Israeli peers. She has even become a lead farmer responsible for providing training for the other farmers. Furthermore, Maryam and the other women in her association submitted a business plan and were provided with a grant to begin a project selling olive products (pickles, makdous, marinated labneh balls, and other products) and marketing them through the association, bazaars and exhibitions. Through this project and all of the association members’ hard work, the women were able to establish an additional source of income that helps provide their families with financial stability. Maryam attributes this opportunity to the Olive Oil Without Borders III project, implemented by NEF and funded by the United States Agency for International Development (USAID). She says, “I am very thankful for the organizations that offered me the opportunity to participate in this project and help my peers in the community to grow and develop. This is only the beginning, and the first step on the road to success that I am looking for.”

Near East Foundation 30 Olive Oil Without Borders III No. 294-A-16-00011 Final Report APPENDIX D: FEMALE JORDANIAN LEAD FARMER WORKS TO IMPROVE OLIVE PRODUCTION IN JORDAN Fatima Hassan Mohammed Samadi may seem an unlikely Jordanian agricultural leader. A 57-year-old mother of six from Ajloun, Jordan, Fatima moved from Amman to the village of Um al-Khashab- Anjara in Ajloun, Jordan, when she married at 17. "In the beginning, I faced many difficulties and challenges in my new environment; city life is so different from the simple village life that depends on agriculture,” Fatima said. “I tried to adapt to my new life and my new society.” Although she had not had the opportunity to pursue an education and had grown up in the city, she became invested and interested in learning more Fatima demonstrates how to make a simple, organic fly trap for about agriculture and helping to manage olive trees—a technique she learned through the Olive Oil Without Borders project and that she has shared with others in her her family’s 34-dunum farm. community. In 2017, she was introduced to the Olive Oil Without Borders project, through which she was able to participate in trainings on improved olive production and became a lead farmer to share this knowledge with others. With her dedication to this work and to spreading her new knowledge, Fatima developed a Farmer Field School on her land in coordination with the project to share improved techniques for olive production. The Olive Oil Without Borders III: Building Regional Support for Reconciliation and Economic Cooperation (West Bank, Israel and Jordan) project, implemented by the Near East Foundation and funded by the United States Agency for International Development, works to promote long- term, large-scale collaboration in the olive sector-- increasing income, production yields, and regional trade. Fatima was immediately attracted by the Olive Oil Without Borders project’s goals and activities. “[Through the project], I got a lot of training to develop myself and increase my knowledge about agriculture and to improve the quantity and quality of olive oil in my farm,” she said. “I participated in all the trainings and activities organized by the project team, which let me acquire many experiences and skills, and increased my awareness. Because of this, I also felt more confident and started transferring information and training farmers around me.”

Near East Foundation 31 Olive Oil Without Borders III No. 294-A-16-00011 Final Report Fatima has become a leader in her community – and is thrilled with the opportunities this has presented for her personal and professional development. As one example of how the project has transformed her life, Fatima shared the following: “During one training, I was teaching farmers how to make fly traps when my husband, who was participating, tried to suggest another method that was not correct. I stuck to my learning, and proved I was correct in the practical application. Now, my husband consults me on everything related to agricultural matters and trusts my information!” Like other farmers in her community, Fatima and her family face a number of challenges – from a lack of water and agricultural equipment, to changing climate conditions and a lack of support in the agricultural sector. But, through the Olive Oil Without Borders project, she is committed to working together with her community to overcome some of these obstacles and improve olive oil production. “Now, after my participation with this project, I became even more interested in taking care of our farm and helping farmers in my village through what I have learned and gained from Fatima in her olive grove. this project,” she said.

Near East Foundation 32 Olive Oil Without Borders III No. 294-A-16-00011 Final Report APPENDIX E: GEO-MIS/ TRAINET

Near East Foundation 33 Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 34 Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 35

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 36

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 37

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 38

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

Near East Foundation 39

Olive Oil Without Borders III No. 294-A-16-00011 Final Report

ANNEX F: OLIVE OIL MARKETING REPORT

Near East Foundation 40 Olive Oil Without Borders

NEAR EAST FOUNDATION

Helping Build Sustainable, Prosperous Communities since 1915 US Market Assessment: Opportunities for Palestinian

and Israeli Olive Oil Producers

Near East Foundation

NEW YORK: 110 Fayette Street, Suite 710 Syracuse, NY 13202⋅ (315) 428-8670 www.neareast.org

Market Assessment: Opportunities for Olive Oil Producers

Phase I: House of Palestinian Expertise for Consultancies and Studies (HOPE) West Bank-Nablus

Phase 2: Charlie Stathacos, Independent Consultant, USA with Salah Abu Eisheh and Sarah Peterson of NEF

This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the Near East Foundation and do not necessarily reflect the views of USAID or the United States Government.

Near East Foundation i Market Assessment: Opportunities for Olive Oil Producers

TABLE OF CONTENTS

TABLE OF CONTENTS ...... ii ACRONYMS ...... iii EXECUTIVE SUMMARY ...... 1 1. INTRODUCTION ...... 4 2. THE PRODUCT: OLIVE OIL WITHOUT BORDERS ...... 4 2.1 Supply ...... 5 2.2 Cost and Pricing ...... 5 2.3 Competitive Advantage of Palestinian and Israeli Olive Oil ...... 7 2.4 Olive Oil Without Borders: Story-Based Marketing ...... 7 2.5 Monitoring and Controlling Olive Oil Quality ...... 8 3. THE MARKET ...... 8 3.1 International Markets ...... 9 3.2 Potential Future Markets (Global) ...... 13 3.3 The US Market Situation and Outlook for Palestinian Olive Oil ...... 14 3.4 Steps for market entry for the US Market ...... 17 3.5 Meeting International Olive Oil Standards ...... 18 3.6 Challenges to Entering International Markets ...... 20 4.CROSS-BORDER COOPERATION AND MARKETING ...... 21 5.TRADE SHOWS AND INTERNATIONAL COMPETITIONS ...... 24 6. CONCLUSION AND RECOMMENDATIONS ...... 25 Annex 1: List of Contacts ...... 27 Annex 2: Selected Sources for Data and Statistics on Production and Trade ...... 28 Annex 3: Best Practices for Quality Olive Oil Production ...... 29 Annex 4: Olive Oil Prices ...... 31 Annex 5: Example of Quote with US warehouse landed price and Chart to estimate packing of pallet for export ...... 33 Annex 6: Effective Trade Show Participation ...... 35 Annex 7: IOC List of Palestinian Exporters and Importers of Olive Oils and Olive- Pomace Oils ...... 37 Annex 8: Checklist for Preparing a Test Shipment of Samples ...... 38 Annex 9: Olive Oil Without Borders – The Story ...... 39

Near East Foundation ii Market Assessment: Opportunities for Olive Oil Producers

ACRONYMS

HOPE House of Palestinian Expertise

IOOC Israeli Olive Oil Council

IOC International Olive Council

ITC International Trade Centre

MoA Ministry of Agriculture (Palestinian Authority)

NARC National Agricultural Research Center

NEF Near East Foundation

OOWB Olive Oil Without Borders

PalTrade Palestine Trade Center

PCARD Palestinian Center for Agriculture Research and Development

POOC Palestinian Olive Oil Council

PSI Palestine Standards Institute

USAID United States Agency for International Development

USDA United States Department of Agriculture

Near East Foundation iii Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

EXECUTIVE SUMMARY The Near East Foundation (NEF) conducted this market assessment through the USAID- funded Olive Oil Without Borders II and III (OOWB) projects to assess and identify opportunities and potential markets for olive oil producers in Israel and the West Bank. The OOWB projects have brought together Israeli and Palestinian producers to work together to address the challenges they face and realize opportunities for improvement. The assessment evaluates the nature of olive oil products in both the West Bank and Israel, costs in terms of production, market dynamics, competitive advantages, as well as ways to protect and preserve the olive oil being produced locally. It considers marketing approaches, identifies market segments that have the potential for OOWB, and proposes steps to be taken to build a successful brand that would grow participants’ businesses. The assessment proposes networks to share market information and facilitate cross-border marketing, taking the form of, for example, joint participation in international trade shows. For the first phase of the market assessment (conducted in 2015), a consultant team worked in coordination with the Israeli Olive Oil Council (IOOC) and Palestinian Olive Oil Council (POOC) to prepare a questionnaire and hold meetings with stakeholders, including the Palestinian Center for Agricultural Research and Development (PCARD), Palestine Standards Institute (PSI), Palestine Trade Center (Paltrade), Ministry of Agriculture (MoA), bottling companies, and olive oil producers in the targeted areas. Findings from questionnaires and interviews were combined with a desk review of available information, allowing the consultants to develop conclusions and recommendations on opportunities for marketing and cooperation. Based on the 1st phase market assessment, recommendations for expanding cross-border cooperation and marketing include the following: • RECOMMENDATION 1: The IOOC and POOC are encouraged to build regional and common quality standards that can be acknowledged and adopted at the governmental level on both sides. Update: Through the OOWB projects, the IOOC and POOC have held 10 joint meetings where they have discussed the oil trade agreement and impact and challenges, shared marketing data such as supply and needs on each side, and discussed joint technical problems facing producers and traders. Meetings between the POOC and the IOOC fostered the sharing of experiences and knowledge and provided a foundation for cooperation. In these joint meetings, the councils established (1) a system for coordination and information sharing; (2) common standards for certification; (3) practies for monitoring and communicating information on production surplus and deficits; and (4) guidelines to deter the trade of poor quality, non-certified olive oil. • RECOMMENDATION 2: Trade shows provide an important tool that can be used in expanding marketing opportunities at the national, regional, and international levels. Update: The OOWB projects have continued to work to expand the marketing assessment (see Phase 2 of the assessment) to develop a product(s) to market at trade shows.

Near East Foundation 1 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• RECOMMENDATION 3: Value chains can be strengthened by supporting the creation of networks of service providers and value-added businesses, promoting the competitive advantages of Palestinian and Israeli olive oil. Update: Through the OOWB projects, NEF has renovated 24 olive mills, created 39 value-added businesses (including 12 managed by women’s associations), and worked with actors along the value chain to promote the competitiveness of Palestinian and Israeli olive oil. • RECOMMENDATION 4: Data and information sharing should be promoted to build successful marketing approaches. Common databases regarding supply chain processes should be encouraged to allow for knowledge transfer and exchange of data and information. Update: Joint meetings between the olive oil councils, the formation of a Joint Advisory Committee, and meetings/events facilitated between olive oil value chain members from the West Bank, Israel, and Jordan have all helped to transfer knowledge and information. The IOOC and POOC share market data and seasonal production figures. The 2nd phase market assessment (conducted in 2017) updated and expanded this market assessment to include more specific information on markets (kinds of olive oil products in demand) and market trends (targeting niche markets for olive oil), and to identify brokers and buyers. The findings of the market assessment show that: • Olives are a major crop in terms of area (olive trees are found throughout the West Bank) and is a leading sub-sector and critical source of national income, contributing to food security and household income for tens of thousands of Palestinians. • With limited local purchasing power and changing consumer trends, olive oil consumption is losing to vegetable oils, which are available in the supermarkets and souks in large jugs at low prices. This substitution trend is also evident in other olive oil producing countries such as Jordan and Greece. Olive oil supply varies year to year but there is surplus product for export in most years. • Olive oil costs of production are high, but the quality is high when proper procedures are followed at post-harvest, pressing, and bottling. • OOWB can work with Al Zaytoona in Salfeet, located in the border area near Israel in a prime olive production area. The cooperative already cooperates with the IOOC and would like to build partnerships with cooperatives from other major producing countries (Crete in Greece is one example). • The OOWB concept (fostering cooperation between Israelis and Palestinians) is well received in the US, where consumers want a good story to go along with their product (cocoa and coffee offer other examples of compelling source/origin stories). • Palestinian olive oil is exported to more than ten countries, with four markets importing over 1,000 tons in 2015: Saudi Arabia, UAE, USA, and Kuwait. These are all growth markets for gourmet olive oil as are China and Japan, which represent future potential for Palestinian gourmet olive oil.

Near East Foundation 2 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• Sales to the Gulf countries and the US are established, but more market development efforts (warehousing and branding) are needed with respect to distribution to maintain these markets and expand into new markets (China and Canada especially). • The OOWB project should organize a test shipment to the US to promote the OOWB concept through a cooperative whose mission fits closely with the project. Sindyanna of Galilee is one possibility, as is Al Zaytoona (suggested above), and other quality olive mills in West Bank. • The project should also facilitate cross-border relationships and agreements with Jordan to increase market access for global trading. There is now a restriction on imports of olive oil from Palestine by Jordan (except for small hand-carried amounts). • The project should conduct joint training sessions with JOPEA (Jordan Olive Products Exporters Association) and Palestinians on improved production techniques and quality control (the Land O Lakes Farmer to Farmer program could be accessed for some of these activities).

The OOWB concept works well in the US market -- the strongest import / consuming market -- where existing Palestinian exports to the US market have built up a base. But more market development work is needed for the olive oils now selling in the US market. There is a lack of year-round availability of Palestinian and Israel olive oils. To capture the US market in a sustainable way, there should be more product shipped with 12-18 months of shelf life. The cause-based product market segment – that is a product with a story (such as OOWB) – is strong.

Near East Foundation 3 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

1. INTRODUCTION The Near East Foundation (NEF) conducted this olive oil market assessment to assess and identify joint opportunities and potential markets for Israeli and Palestinian olive oil. The assessment evaluates the nature of olive oil products in both the West Bank and Israel, costs in terms of production, market dynamics, and competitive advantages. An initial identification of potential markets is presented, and ways to protect, preserve, and market olive oil being produced locally are considered. The assessment considers marketing approaches and market niches, as well as steps that could be taken to build a successful brand that would grow participants’ businesses. It also proposes networks to share market information and facilitate cross-border marketing (for example, through participation in international trade shows). The assessment has been undertaken through the USAID-funded OOWB projects, which are aimed at strengthening linkages between Israeli and West Bank olive industry leaders in order to (1) promote cross-border cooperation and leadership development through joint marketing and applied research; (2) expand grassroots, cross-border economic cooperation between Israelis and Palestinians in the West Bank (and, in the third phase of the project, Jordan); and (3) strengthen value chains structurally by supporting the creation of networks of service providers and value- added businesses. In coordination with the Israeli Olive Oil Council (IOOC) and Palestinian Olive Oil Council (POOC), the 1st phase assessment team (2015) worked to evaluate the nature of olive oil products in both the West Bank and Israel, costs in terms of production, market dynamics, and competitive advantages. The 2nd phase update (2017) provides more detail on US consumer market demand and other international markets with high potential. The 1st phase assessment team undertook a desk review of all data and documents collected from different institutions including NEF, IOOC, POOC and the Ministries of Agriculture. The team then, working in coordination with the IOOC and POOC, developed a questionnaire that was distributed to farmers, mill owners, and business owners in Palestine and Israel to help inform the assessment. The 2nd phase market assessment relied on data and information obtained from the International Olive Council (IOC), the United States Department of Agriculture (USDA), the International Trade Centre (ITC), and other trade information sources as well as information gathered at the NY Fancy Food show and interviews with stakeholders in olive oil production zones in Palestine and Israel. Some olive oil tastings and meetings with buyers were conducted in advance of the market test to be organized during the new season after November 2017. 2. THE PRODUCT: OLIVE OIL WITHOUT BORDERS Olives are one of the most significant crops in Israel and Palestine, and olive oil has been an important product since ancient times. While they share some methods for olive planting, growing, and harvesting, Israeli and Palestinian producers have different levels of access to technology, water, and information; this creates differences in qualities and quantities of olive oil produced and costs of production. Before OOWB, the Israeli and Palestinian olive oil industries were operating independently, with very little cross-border exchange and cooperation. The OOWB program has helped to facilitate the sharing of information and the first-ever joint policy commission between the Palestinian and Israeli Olive Oil Councils. The joint commission

Near East Foundation 4 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers adopted a cross-border trade agreement, allowing Palestinian olive oil to cross into Israel officially for the first time in more than 10 years. Palestinian farmers exported 4,500 metric tons of olive oil to Israel under the trade agreement, representing $25 million USD in new income. 2.1 Supply In Palestine, the total annual production of olive oil varies from 7,000 to 30,000 tons, with an average volume of 17,000 tons. Much of the year-to-year variance is attributable to the annual alternate bearing1, an important characteristic of olive trees (and other tree crops as well) throughout the world. With local consumption averaging 17,000 tons per year, Palestine has an excess supply of approximately 4,000 tons per year. For Israel, olive oil production over the last 10 years has varied from 4,000 tons to 19,000 tons, with an average production of 12,400 tons per year. Israeli farmers are more likely to use irrigation, dense groves, and modern techniques to increase yield. Israeli exports average 1,000 tons or less a year. Based on information collected from the IOOC and POOC, average supply and consumption in Israel and Palestine are shown in the tables below. This information demonstrates the supply available and opportunity for improved export marketing. Supply and Consumption in Israel and the West Bank

Item Israel West Bank Land used for Olive Trees 300,000 Dunum 437,000 Dunum No. of Trees 5 million trees 7.8 million trees Production in good year 14,000 tons 22,000 tons Average production during the last 12,400 tons 17,000 tons 30 years Local Consumption 15,000 Ton 13,900 Ton (West Bank) No. of presses 125 292 Concentrated 5,500 agriculture See Annex 7 for a list of Palestinian exporters and importers of olive oil. 2.2 Cost and Pricing Olive oil prices vary from one year to another depending primarily on annual Olive Oil Production Costs production volumes. Production cost and Stages % of total cost pricing is a key element in determining price Farming Pruning, Fertilizing & weeding 8% competitiveness. Olive oil production costs Plow 30% are typically divided between farming Collecting/Harvesting 45% (38%), harvesting (45%), transportation Transportation 5% (5%), and pressing (12%). These Pressing 12% percentages are approximately the same for producers in Palestine and Israel, varying slightly between rain-fed and irrigated production.

1 The olive tree exhibits a peculiar behaviour, named alternate bearing (biennial bearing or periodicity), being defined as a tendency of some fruit trees not to bear a regular and similar crop year after year. Thus, a high-yield crop year (“on-year”) is followed by a low-yield or even a no-crop year (“off-year“)...The alternate bearing is so pronounced in the olive tree, that it has been considered that this crop shows a biennial developmental cycle. Source: Turktas, Mine, et al. “Nutrition Metabolism Plays an Important Role in the Alternate Bearing of the Olive Tree (OleaEuropaea L.).” PLoS ONE, vol. 8, no. 3, 2013, doi:10.1371/journal.pone.0059876.

Near East Foundation 5 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

However, the total cost of producing 1 kg of olive oil using rain-fed methods is almost twice that of using irrigated agriculture. A comparative study of olive oil production costs undertaken by the IOC (for the traditional rain fed on steep slopes production system) showed significant variation among countries. International Olive Oil Production Costs (Euro/kg.)

Source: International Olive Oil Production Costs Study, IOC, October 2015

In order to price for the export market, the shipping costs need to be added to the ex-warehouse price. The packing information chart shown in Annex 4 provides estimates per pallet for shipping different size bottles. For an order of 96 cases (1152 500 ml bottles in a 12 bottle case), the pallet weight is 2,230, roughly equivalent to 1,000 kilos, or one metric ton. The quote should include all costs incurred by the producer warehouse to the importer-distributor warehouse.

For the example above, if the price of extra virgin quality olive oil is $5 dollars ex-warehouse Palestine or Israel, and the cost of the pallet shipped door to door is $1,150, then cost in the warehouse in the US will be $6 per bottle. With the distributor margin added of $2, the price to the store will be $8.00 and the shop will sell the olive oil for anywhere between $12 and $18 depending on their scale, location and customer base. Based on current prices in the U.S. market, Palestinian and Israeli olive oils can be competitive at these rates (particularly with quality story-based marketing) in the specialty and gourmet market segments.

Near East Foundation 6 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

2.3 Competitive Advantage of Palestinian and Israeli Olive Oil Olive oil produced in Palestine and Israel has a number of competitive advantages—both unique and shared. Palestinian oil is typically produced after manual picking, which leads to a higher quality oil. Palestinian oil also contains high levels of polyphenol anti-oxidants. Israeli production benefits from the use of technology, irrigation, and mechanization, which results in high productivity and maintained quality. Both Israeli and Palestinian olive oils are attached to the holy land, creating a unique and shared story that provides a competitive advantage. Olive Oil Competitive Advantages Item Description

Common • Olive oil is attached to the historical and the holy values of the holy land for Competitive the different faiths including Islam, Christianity, and Judaism. Advantage of the • Taste profiles for common types such as Nabali and Sori are attractive. Palestinian and • Surplus quantities (especially from the Palestinian side) that can be used Israeli Olive Oil for exporting.

Competitive advantages in olive oil production could be strengthened further through additional efforts at the national and regional level. These include: • Build on the story of Olive Oil Without Borders to market olive oil. Development of strong brand and attractive labeling. • Using organic agricultural techniques and obtaining certification. • Ensuring high-quality olive oil through the maintenance of olive presses, use of proper storage and filling practices, and appropriate bottling/packaging.

2.4 Olive Oil Without Borders: Story-Based Marketing Olive trees have been the foundation of rural economies in Palestine and Israel for generations. Woven into the very fabric of these societies, olive trees also have meaning far beyond economic value and often trigger conflict.2 Olive Oil Without Borders has fostered cross-border, grassroots economic cooperation and built relationships of trust, mutual understanding, and shared financial interest among Palestinians and Israelis3 (and now Jordanians) in the olive oil industry. Olive Oil Without Borders aims to promote reconciliation between Palestinians in the West Bank and Israelis (and Jordanians) by strengthening cross-border economic cooperation and promoting mutual understanding among farmers, industry leaders, and researchers in the olive sector.4 By promoting long-term, large-scale collaboration in the olive sector, OOWB is intended to result in social outcomes of increased understanding, trust, and collaboration among individuals across the Israel-West Bank border (and into Jordan). OOWB also fosters direct,

2 Palestinian Territories | Near East Foundation. (n.d.). Retrieved from http://www.neareast.org/where-we- work/palestinian-territories/ 3 Olive Oil Without Borders Has A Recipe For Middle East., https://www.greenprophet.com/2015/02/ 4 https://www.maxwell.syr.edu/parcc/news/Olive_Oil_III_Training_2017/

Near East Foundation 7 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers short-term impacts including increased income, production yields, profitability, and cross-border trade. By supporting the Olive Oil Without Borders product, consumers advance these social and economic benefits for farmers and millers in the West Bank, Israel, and Jordan—and help to sustain this grass-roots cooperation. The OOWB story can be further strengthened through the stories of the farmers, mill owners, and other actors that participate in the development of the product, particularly stories showing cooperation. The OOWB story resonated with Americans at the Fancy Food Show and through discussions with other actors. 2.5 Monitoring and Controlling Olive Oil Quality Quality assurance and quality control of olive oil is an important aspect of marketing. While the Olive Oil Without Borders product can be marketed on its story, a quality oil is still key to fostering the brand and expanding sales. Quality must be strictly ensured in all steps of the olive oil production—from harvesting, transportation, and storage to bottling. It is recommended that OOWB consider working with SGS – the world’s leading inspection, verification, testing, and certification company – to monitor production. Olive oil business owners and farmers have become increasingly aware of best practices to produce quality olive oil. The Israeli and the Palestinian governments have developed olive oil specifications, built on guidance from the International Olive Council and regional specifications. All actors in the value chain should be aware of and strictly follow quality standards and best practices.

3. THE MARKET This section reviews market trends, marketing information on production and consumption, and proposes possible trade shows for participation. Olive oil is a specialty product – and, except for pomace oil, is the only edible oil that is not factory processed. The health benefits of olive oil, often associated with the Mediterranean diet, are significant and are attributable to the fact that extra virgin olive oil is not a factory refined product. This distinguishes olive oil from other edible vegetable oils. The ways olive oil is sold reflects the many market segments that exist. In the US, importers and importer-distributors sell olive oil in all different forms (small bottles to bulk container loads) to supermarket chains, gourmet stores (some are chains), ethnic markets (some are chains), olive oil tasting stores, gift stores, foodservice for restaurants, manufacturers for prepared foods for consumers and foodservice, olive oil companies that make private label brands and cosmetic and supplement companies. Within all the above categories, there is demand for different qualities/standards including organic and fair trade. And a recent trend has been the appearance of flavored olive oils and olive oil-balsamic vinegar mixes for salads and dipping. The chart below is a presentation from a specialized store that focuses on premium products from single origin sources.

Near East Foundation 8 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

A huge upward trend now underway for all retail is online sales through e-commerce sites – with Amazon in the US and Alibaba in China as the prime examples - that sell directly to consumers. A second major trend is the home meal delivery service, led by Blue Apron and Hello Fresh.

Olive Oil and Vinegar Tap Room Recommended Pairings

Source: The Twisted Branch, Valhalla, NY

3.1 International Markets In 2016/17, world production of olive oil is estimated to come to 2.71 million tons, of which Spain produces 1.31 million tons or 48.3% of world production, while Italy and Greece produce 9.0% and 9.6% respectively. Portugal ranks 4th among EU producers, and represents only 3.5% of world production. For the period between 2010/11 through 2015/16, total world production has averaged from over 2.94 million, with 2011/12 recording the highest production year of 3.32 million tons. World production is lower this year due to production problems in Italy, which saw an almost 50% decline from the previous year, as well as Spain, Greece, and Portugal. The chart and table below show the latest production estimates for the last two years.

Major World Olive Oil Producers '000 metric tons (source IOOC)

1,600.0 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 Spain Italy Greece Portugal

2015/16 2016/2017

Top EU producers 2015/16 2016/2017 % change Spain 1,401.0 1,311.0 -6.4% Italy 475.0 243.0 -48.8% Greece 320.0 260.0 -18.7% Portugal 109.0 94.0 -13.8% Total 2,305.0 1,928.6 -17.2

Near East Foundation 9 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Outside of the EU, important producing countries include Syria, Turkey, Tunisia, and Morocco; there is growing production at smaller scales with more recent producers such as Australia, Chile, Egypt, and the US (California)—and even China and India are producing some quantities for local consumption. With consumption in the US remaining strong, and new consuming countries such as Japan importing more olive oil, prices remain firm on the world market. This is good news for Palestine and Israel, which are high-cost producers that have gained a foothold in the US market.

Leading Non-EU Producers of Olive Oil, '000 metric tons 2016-2017 (est) source: IOC 200 Turkey, 177 180 160

140 Syria, 110 120 Morocco, 110 Tunisia; 100 100 80 Algeria, 74 60 Jordan, 23 Australia, 21 40 Palestine, 20 Argentina, 16 Libya, 15 Chile, 17 20 Israel, 7 0

Olive Oil Consuming Countries

According to the IOC, world consumption of olive oil increased almost twice in volume between 1990/91 and 2015/16. Much of the increase comes from non-producing (or limited producing) countries led by the U.S. where consumption has more than doubled in the period from 1990-2016 as shown in the chart below.

Near East Foundation 10 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Source: IOC

Competition from Other Edible Oils Compared with other edible oils, olive oil makes up only 2% of world demand. Among budget- conscious consumers and cost-conscious manufacturers, olive oil is not the preferred product. This a particular problem for countries with populations that are losing purchasing power and are now cooking more with other edible oils and where the increased popularity of fast food outlets that use other edible oils for fried and grilled foods is taking away from olive oil consumption. One major example is Greece, where the per capita consumption of olive oil has decreased by half in the last 10 years. This same trend is evident in Jordan and Palestine, although no consumer trend surveys on the subject are available.

World Consumption of Vegetable Oils, 2016-2017 Million metric tons Olive oil

Coconut oil

Cottonseed oil

Peanut oil

Palm Kernel oil

Sun8lowerseed oil

Canola oil

Soybean oil

Palm oil

0. 10. 20. 30. 40. 50. 60. 70.

Near East Foundation 11 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

In the US, the positive health and taste characteristics of olive oil make it a special product that adds value for both the household, whether as an extra virgin oil for salads, as a dipping oil, for cooking, or for packaged foods. In the US, as shown in the table below, olive oil used in manufacturing has increased ten times in quantity from 26,000 tons in 1980 to 275,000 tons in 2010.

Salad and Cooking Oils in US Market: Olive oil used in Manufacturing, 1980-2010, metric tons (source: USDA)

300,000 275,000

250,000 204,000 200,000

150,000 97,000 100,000

50,000 26,000

0 1980 1990 2000 2010

Top Export Markets for Palestinian and Israeli Olive Oil

The table below shows the top 10 export markets for Palestinian olive oil, with the four markets importing over 1,000 tons in 2015: Saudi Arabia, UAE, USA, and Kuwait. Total world exports were 5,442 metric tons for 2014 and 8,806 metric ton for 2015 (2016 figures not yet available through ITC).

Top 10 Importing Markets for Palestinian Olive Oil, 2014 and 2015 metric tons (source ITC)

2,500 2,000 1,500 1,000 500 0

2014 2015

Near East Foundation 12 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

The primary market for Israeli olive oil is the US, which according to the ITC Comtrade statistics did not exceed 300 metric tons in either 2014 or 2015. Sindyanna of Galilee now exports to selected customers and is working on setting up national distribution in the US.

Top 10 Importing Markets for Israeli Olive Oil, 2015 and 2016 metric tons (source ITC)

300 250 200 150 100 50 0

2015 2016

3.2 Potential Future Markets (Global) “China Is Acquiring a Taste for Olive Oil” "There is enormous potential for continuous growth in Chinese The existing markets in Asia and the olive oil use over the next two decades…” said Manuel Leon, Middle East can be built upon and the Shanghai representative of Andalusia's export promotion agency Extenda, according to the Wall Street Journal. further developed. In the Middle East, Saudi Arabia and the UAE are leading Advertising may be partly responsible for driving the demand for olive oil, by bringing up public awareness of the health importers of Palestinian olive oil, with benefits of olive oil compared to other types of oil traditionally Kuwait about equal with the US (2015 used by the Chinese. figures as shown in the table above). "I used to use peanut oil, now I only use olive oil and China and Japan are small markets now sunflower seed oil, which I think are more healthy," said Su, a 51-year-old Beijing resident who declined to give her first for Palestine, but both are increasing name, according to the Wall Street Journal. their appreciation and consumption of Source: (IBTimes, February 14, 2014) olive oil.

China Olive Oil Imports, 2005-2017 metric tons (source: index mundi)

50,000

40,000 30,000

20,000 10,000 0 2004 2006 2008 2010 2012 2014 2016 2018

Near East Foundation 13 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

3.3 The US Market Situation and Outlook for Palestinian Olive Oil Olive oil is the leading export product to the US market from Palestine, representing about 30% of total imports of 6.3 million dollars. The figure represents not only the extra virgin bottled products but also virgin olive oil for the personal care industry, under the harmonized trade code of 1509 that includes olive oil in all forms. The table below that applies to bottled or canned extra virgin olive oil under the trade code (HTS 1509102050) shows that most of the olive oil exported is in smaller canned or bottled form, not shipped in bulk. Countries such as Morocco, which ship mostly bulk olive oil, actually rank lower than Palestine for shipments of extra virgin olive oil. The efforts of Palestinian olive oil brands to establish a presence in the market has been successful, but all the companies have some issues or challenges in maintaining and/or expanding sales.

Total US Imports from Palestine, All Merchandise, 2016 (Source: Office of Trade and Economic Analysis (OTEA), Industry and Analysis, International Trade Administration, U.S. Department of Commerce.)

The value of total imports of all olive oil categories in the US market from all suppliers is $1.33 billion dollars, led by Italy and Spain who dominate, followed by Tunisia, Greece, and Morocco. For the extra virgin olive oil bottled market in the US, Italy, and Spain also dominate, followed by significant exports from Greece and Morocco, the latter primarily supplying bulk olive oil. Israel and Palestine rank 8th and 9th respectively for this category, ahead of the relatively new supplying country Argentina, which ranks 10th.

Near East Foundation 14 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

U.S. Imports of Olive Oil (all qualities and container sizes), for Consumption, by Country

Country 2015 2016 Percent In 1,000 Dollars Change 2015 - 2016 Italy 531,533 569,535 7.10% Spain 332,505 524,047 57.60% Tunisia 189,742 78,166 - 58.80% Greece 37,920 40,361 6.40% Morocco 24,418 30,689 25.70% Chile 28,152 21,468 - 23.70% Turkey 14,692 20,581 40.10% Argentina 37,731 19,535 -48.20% All 28,825 27,916 -58.60% Others: Total 1,225,517 1,332,298 8.70%

Sources: Data from the U.S. Department of Commerce and the U.S. International Trade Commission.

U.S. Imports of Extra Virgin Olive Oil (Weighing With The Immediate Container Under 18kg), by Country

Country 2015 2016 Percent Change 2015 - 2016 In 1,000 Dollars Italy 325,395 347,207 6.70% Spain 103,018 148,824 44.50% Greece 21,540 22,468 4.30% Tunisia 14,006 7,335 -47.60% Turkey 6,476 5,949 -8.10% Lebanon 2808 3,268 16.40% Chile 3,818 2,664 -30.20% Israel 524 2,409 359.80% Palestine 1,878 1,647 -12.30% Argentina 690 1,497 117.10% 480,153 543,268 13.10% All Other: 2484 1406 80.40% Total 482,637 544,674 13.10%

Sources: Data from the U.S. Department of Commerce and the U.S. International Trade Commission.

Near East Foundation 15 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

The top olive oil brands in the US market include the Italian brands (see table below), but also California Olive Ranch, which is now importing South American olive oil to blend with its California olive oil. These olive oils are sold in mass market supermarkets as well as small stores and do not target a gourmet consumer, but rather the average household that wants a quality product for an affordable price. The more discerning consumers will pay more for a premium olive oil that has a good story behind it.

Top Olive Oil Brands in US Market, 2015-2016

Dollar Sales Brand (in millions) Filippo Berio 116.9 Bertolli 97.0 Pompeian 81.1 California Olive Ranch 39.3 Colavita 32.4 Botticelli 24.4 Star 22.7 Lucinitalia 11.0 Goya 9.8 Source: Progressive Grocer, Annual Consumer Expenditures Survey, July 2016

Near East Foundation 16 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

3.4 Steps for market entry for the US Market Market Entry Using an Importer-Distributor 1. Identify importer-distributors who are experienced with specialty/premium/ethnic market channels and their regional coverage (East Coast, West Coast, Midwest, and Southeast). • Meet with importer-distributors who specialize in olive oil and Mediterranean products at the Fancy Food show in New York. Importers who already import olive oil or at least Middle Eastern products will be better positioned to support the new olive product in marketing and selling to their retail stores. • Meet with members of the North American Olive Oil Association, which is part of the Association of Food Industries (AFI), at networking receptions during the major European trade shows, particularly Anuga (in Cologne in 2017 and 2019) and SIAL (in Paris in 2018 and 2020). • Identify importer-distributors on the web who carry olive oil and Mediterranean products and contact them for interest in working with OOWB olive oil. 2. Review the proposed packaging, branding and labeling of the olive oil with the importer-distributor before finalizing. Their input can help with retail buyer acceptance. 3. Provide samples to the distributor and ensure the quality matches what will be shipped. 4. Obtain quotes for shipping by the pallet (or container) that give a US landed price (see an example from Sindyanna in Annex 5). 5. Finalize an agreement with the importer-distributor for volume and pricing. Market entry without an importer-distributor Several Palestinian and Israeli brands are in the market already and have set up warehousing and distribution arrangements that remain proprietary, although they indicate they are interested in getting additional marketing and sales support. In this case, the company ships directly to an import warehouse, which will fulfill orders. These arrangements require some US-based agent, broker, or partner who will receive and process orders and follow up on leads. The Palestinian company will need to put a team in place for sales support to be successful.

Near East Foundation 17 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

This list below represents importer-distributors who were contacted at the NY Fancy Food show in June 2017 regarding the OOWB and showed interest in importing. • Ararat Imports, North York, ON (Canada) • Baroody Imports, Clifton, NJ • Current Specialties, Mamaroneck, NY • Eclectic Harvest, Rye, NY • Karabetian Import & Export Los Angeles, CA • Kradjian Importing Co. Glendale, CA • Sahadi Fine Foods, Brooklyn, NY • Sun Grove Foods, Passaic, NJ Possible importer-distributors can also be identified through web research. Specialty Food Distribution Company, LLC (see description below) is an example of a potential partner that sells its service based on a flexible model and carries olives and olive oil.

“Specialty Food Distribution Co., LLC is a special market distribution company. We work with non- traditional grocery accounts whose needs do not fit into the traditional wholesale grocery programs or the pricing model of a specialty food distributor. Our customers typically tell us what they want and how they need it delivered. We don't have "Our Program" and expect our customers to fit into our program like other grocery wholesalers and distributors. We will design a program that will fit into your retail needs. Flexibility and creativity is the key to our business model. Listed below are some of the things we do for our customers all of which have different cost structures.” • Pick orders by store and ship direct to retail stores • Pick orders by store and cross dock with distribution centers • Pick orders by pallet and ship to distribution centers • Overseas containers shipped to our warehouse and then unloaded and shipped LTL to retail stores • Truckloads direct to retail stores • Truckloads direct to distribution centers • Pick orders and ship via UPS to retail stores • Logistics and Warehousing for Manufacturers • Import food stuffs • Export food stuffs” https://www.specialtyfooddistribution.com/ https://specialtyfooddistribution.com/services-provided.php

3.5 Meeting International Olive Oil Standards5 According to the International Olive Council (IOC), a set of olive oil trade standards for the different olive oil brands was adopted by the decision No. DEC-17/103-V/2015. This standard fixes the physico-chemical and distinguishing quality and purity criteria of each designation (grade) of olive oil and olive-pomace oil that is mentioned in the Agreement. The IOC members are committed to prohibiting the use of any product designations other than those specified.

5 Standards - International Olive Council. (n.d.). Retrieved from http://www.internationaloliveoil.org/estaticos/view/222-standards

Near East Foundation 18 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

The trade standard also specifies the “Fact Check: 3 Common Myths about Olive Oil methodology for the collection and Quality” from Olive Oil Times chemical analysis of samples. To find the (https://www.oliveoiltimes.com/olive-oil-basics/fact- most suitable tools for this purpose, the check-3-common-myths-about-olive-oil-quality/47395)

IOC draws on the collaboration of olive 1. Acidity can be perceived by tasting: False. oil chemistry experts from its member The acidity is due to free fatty acids present in olive oil countries that have helped to develop and it is expressed in percentage of oleic acid. This relevant methods. The IOC also parameter can be defined only by laboratory testing and collaborates with other international it is odorless and tasteless, so you cannot perceive it by organizations and in some instances, it tasting and you must never confuse it with the bitter taste and the pungent sensations that are distinctive attributes refers to methods of analysis of the of a good EVOO. In most cases, the more these features International Organization for are pronounced, the lower the acidity. Standardization (ISO) or the Pungency and bitterness are produced by phenolic International Union of Pure and Applied compounds responsible for the extraordinary health Chemistry (IUPAC) and the American qualities of extra virgin olive oil. Oil Chemists' Society (AOCS). Lastly, 2. The color is indicative of quality: False. the trade standard deals with other EVOO can have different shades of color ranging from golden yellow to dark green that depend on the olive aspects, such as food additives, cultivars, the degree of maturation of the olives and contaminants, hygiene, packing, pack fill factors relating to the production processes. Color is not tolerances and labeling of olive oil and an indication of quality. olive-pomace oil. 3. Unfiltered olive oil is more genuine and healthy than filtered olive oil: True and False. The following are standards for olive oil The olive oil we obtain at the end of the extraction in countries that adhere to the standards process is a product rich in particles of olives – pulp and of the International Olive Council stone. If not filtered, these tiny pieces initially induce a (IOC)6, as well as in Australia, and under slight increase of nutritional content. the voluntary USDA labeling standards in As time goes by, however, they will reduce, even the United States: dramatically, the shelf life of EVOO because they will sediment on the bottom and accelerate the oxidation and • Extra-virgin olive oil: Comes the consequent loss of healthful elements. Filtering is from virgin oil production only, important to maintain stability and preserve the healthy qualities. and is of higher quality. It contains It is important to clarify that the sensory analysis is the no more than 0.8% free acidity (see only reliable way to assess quality of EVOO. Only a few below), and is judged to have a features are detectable by laboratory testing, but the superior taste, with some fruitiness condition of extra-virginity can be perceived only and no defined sensory defects. according to our olfactory, retro-nasal and gustatory perceptions. Panel opinion is in fact an essential and Extra-virgin olive oil accounts for fundamental element for evaluation in competitions and less than 10% of oil in many certifications in general. producing countries; but the percentage is far higher in the Mediterranean countries (Greece: 80%, Italy: 65%, Spain 50%).

6 IOC Designations and Definitions of Olive Oil. http://www.internationaloliveoil.org/estaticos/view/83- designations-and-definitions-of-olive-oils.

Near East Foundation 19 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• Virgin olive oil: Comes from virgin oil production, but is of slightly lower quality, with a free acidity of up to 1.5%. It is judged to have a good taste but may include some sensory defects.

• Refined olive oil: Obtained from virgin olive oils by refining methods that do not lead to alterations in the initial glyceride structure. It has a free acidity, expressed as oleic acid, of not more than 0.3 grams per 100 grams (0.3%) and its other characteristics correspond to those fixed for this category in this standard.

• Olive pomace oil: Refined pomace olive oil is often blended with some virgin oil. It is fit for consumption, but may not be described simply as olive oil. It has a more neutral flavor than pure or virgin olive oil. Valuing ‘Harmony’ In Extra Virgin Olive Oil “The extra virgin olive oil (EVOO) classification is by far the largest percentage of olive oil grade by production. However, not all EVOOs, despite their classification, are ‘equal’ in terms of quality. Due to the diversity of origin or olive variety, the harvesting or production process, and of course the final EVOO blend itself, many different ‘sensory’ olive oils can be merged to create the final EVOO product. Consumers and even major buyers in the olive oil industry can be unaware of the differences within the general category of EVOOs. One way to differentiate higher quality EVOOs is by including the factor ‘harmony’ in sensory evaluations. Several oil competitions, the International Olive Oil Award-Zurich (IIOA), the Mario Solinas Award and PremioBiol, already include harmony or complexity as additional sensory factors in judging quality. And academic investigations carried out with trained panel testers from the German Olive Oil Panel (DOP) and the Swiss Olive Oil Panel (SOP) have demonstrated the value of harmony as an objective sensory descriptor – and one which can be used to discriminate different quality levels within the 7 grade of EVOO.”

3.6 Challenges to Entering International Markets The main issues faced in the targeting international markets include: • With high prices in the local markets in Palestine and Israel, there is less incentive for businesses to promote exports, especially with the extra costs and efforts required to meet high-quality standards in markets such as the US. But if local consumers continue to shift to cheaper vegetable oils, then export markets will serve to absorb surplus production not consumed locally. • Difficulties experienced in trying to meet standards in export markets. There is awareness of best practices for pressing and storing olive oil to meet international export standards among Palestinian producers, but better management at critical points in the value chain is needed.

7 Understanding Global Olive Oil Quality, Grading and Labeling Requirements: A Brief Summary of Voluntary Industry Standards And Government/State Regulations; and An Outline of Common Issues Relating to Adulteration and Contamination, by James Cook, SGS Food Scientific and Regulatory Affairs Manager and Claudia Koch, SGS Business Development Manager for Products with Plant Origin, May 2015

Near East Foundation 20 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• High levels of fluctuation in olive oil production quantities limit the supply available for export. • There are excellent marketing/promotional capabilities available, that is, qualified people who can help develop markets and increase sales. Public (or project) support for market development and promotion is needed. Many other countries have funds for such activities. • Price competition from other olive oil producing countries - who have lower production costs – is an ongoing problem. Despite these obstacles, these markets still offer opportunities and potential. Institutions will need to provide special efforts and new approaches to promote the export of olive oil. 4.CROSS-BORDER COOPERATION AND MARKETING Cross-border marketing and cooperation provides many potential advantages for olive oil producers in the region. Cooperation allows producers to work together to address challenges that are faced in the sector – and work together to expand market access. All people interviewed during the assessment emphasized the importance of cross-border marketing and indicated the need to mitigate obstacles and further organize and institutionalize processes. The following points are recommended:

1) Information-Sharing. Information-sharing is a key requirement for enhancing cross- border marketing. Information is essential to creating a strong marketing process. Information on Palestinian and Israeli markets is important to producers on both sides, particularly for cross-border marketing. At present, information sharing occurs mainly through joint projects, such as those implemented by NEF. Information is shared during meetings, joint training workshops, site visits, farm visits, and, to a lesser extent, technical publications. According to the people interviewed, the main obstacles facing information sharing include: • Language differences between Palestinians and Israelis. • Lack of access due to restrictions on movement and the need to get permits to enter Israel, which is sometimes difficult. • The general political conditions and the uncertainty in political circumstances. • The Paris Protocol and the limitations on exporting Palestinian products to Israel. • The lack of willingness to cooperate and fear of working with each other. Given the above obstacles and other conditions, the best methodologies for sharing market information are: • Connect the IOOC and POOC; draft agreements and Memorandum of Understandings concerning information sharing. [The OOWB projects have facilitated 10 joint meetings between the IOOC and POOC to facilitate information sharing.]

Near East Foundation 21 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• Use social media tools and try to link and introduce individuals on both sides with each other based on their common interests. • Form joint social and technical committees. [The OOWB project has formed a Joint Olive Oil Advisory Committee to conduct joint research on olive and olive oil production.] • Arrange monthly meetings with focus groups with participants from both sides to discuss specific issues and share information. Restrictions on movement may limit attendance and participation. [Cross-border workshops, visits, and trainings have brought together hundreds of individuals through the OOWB projects. More than 2000 have participated in trainings and activities.] 2) Trust Building. Develop individual connections between Israeli business owners and Palestinian business owners and between mill owners on one side with a supply source from the other side. These one-on-one connections build trust and can create good marketing opportunities. 3) IOOC-POOC Relationship. Foster the relationship between the IOOC and POOC in all areas, including marketing, data sharing, and the transfer of information/technical skills. The IOOC and POOC can help to initiate contacts and draft long-term marketing agreements between Palestinian and Israeli producers. The OOWB projects have brought together the IOOC and POOC together for 10 joint meetings. To facilitate marketing agreements, a marketing specialist within each OOC is recommended to be recruited to provide support to oil producers in a structured and ongoing way. 4) Opportunities for Joint Cooperation. Create opportunities for joint cooperation on common interest issues, such as controlling diseases that target olive trees, cooperating on reducing the entrance of foreign olive oil to the market, and encouraging the transfer of knowledge and techniques. For example, Israeli business owners have more experience with market needs, quality specifications, and labeling. Palestinian business owners can benefit from this knowledge from Israeli business owners. Institutions like NEF, in particular, can support the creation of cross-border marketing opportunities and agreements—especially at the beginning, when trust is not yet built. The experience of NEF in the olive oil sector from the past projects and the capacity built within NEF will enable it to play a leading role in building trust and initiating cross-border marketing agreements at the beginning. This role can be transferred to Olive Oil Council's later, as mentioned above. According to the Final Report for the Olive Oil without Borders I - Palestinian-Israeli Olive Oil Project (2014), there are three root causes creating the obstacles facing efficient cross-border marketing between Israelis and Palestinians. Those are: 1) Political Situation. The political conditions and situation in Gaza and the West Bank have transformed the region’s security landscape and created a challenge for cross-border joint activities. This has often resulted in a lack of trust of the other. Further, this has resulted in differences in prices between the two sides, especially that Israelis have an

Near East Foundation 22 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

open market and borders and can import olive oil at cheaper prices from other non- Palestinian sources. 2) Cultural Constraints: Women’s participation in the sector is an ongoing challenge requiring creativity to promote participation. 3) Technical Gaps: The significant gaps in knowledge, technology, and productivity between Israel and Palestine in the olive sector. The absence of a single representative for cross-border marketing on both sides also creates logistical challenges. If a representative on each side has been given the proper authority (for example, the IOOC and POOC), then cross-border marketing can be further facilitated. Based on the prevailing political conditions between Palestinians and Israelis, it is recommended to foster the cooperation between the business owners, press owners, and farmers through the NGOs such as IOOC and POOC. The political conditions prevent fostering the relations between Ministerial levels or official levels. The best way to fostering the cooperation is by implementing joint projects between the IOOC and POOC, through NEF as a first step. These projects may concentrate on exchanging expertise and knowledge and supporting joint cooperation in exporting activities.

Near East Foundation 23 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

5.TRADE SHOWS AND INTERNATIONAL COMPETITIONS Trade shows provide important marketing opportunities. Based on interviews and data collected, the assessment team found that: Regional Trade Shows • Participation costs at trade shows are very high, limiting the participation of farmers International Olive Products and Technology Exhibition (IOTEX) – Jordan.Biannual fair, and small businesses. bringing together all agents involved in the olive • Trade shows occur at the national, regional oil sector; presents latest technologies in the and international level. Examples of national industry. trade shows include events in Tel Aviv, International Trade Shows Nablus, Jerusalem, and Bethlehem. At the Alimentaria (Spain). Most important international regional level, the International Olive food and beverages exhibition in Spain and one Products and Technology Exhibition (Iotex) of the leading international events of this type in Jordan is a popular event. Many trade Enlolitech. Exhibition for Technologies of shows exist on the international level, Viticulture, Enology and of Technologies for Olive including SOL in Italy, GulFood in Dubai, Growing Oil Production Fancy Food Show in the US, and Sial in Fancy Food Shows (US). Create, connect, France. support, and share the extraordinary experience of specialty food with the world • Participation by different stakeholders, FoodEx Saudi (Saudi Arabia). Professional generally, tends to occur on an individual Saudi buyers basis—which increases participation costs and does not maximize the benefits of GulFood (Dubai). World’s biggest hospitality and annual food show, with more than 5,000 participation. Many of those interviewed exhibitors mentioned that one party should organize New York International Olive Oil Competition the participation of the different interested (NYOOC). Annual meeting and networking event stakeholders in trade shows. Participation for high quality olive oil producers, marketers, should also be based on a feasibility study merchants and buyers. and the advantages of participation in the OlioCapitale (Italy). Top quality extra virgin olive different trade shows. oil expo Finally, interviewees noted participation in the SIAL Paris (France). International food exhibition trade shows could be enhanced encouraging Sol & Agrifood (Italy). International Exhibition of common representation on the national level Quality Agro-Foods: a prestigious showcase that, also by being held alongside Vinitaly, promotes and promoting joint participation between excellence in olive oil and agro-foods on a Israelis and Palestinians. national and international scale. Participating in trade shows is an effective way to engage and sell products to prospective buyers. It provides a unique marketing route to meeting new buyers, engaging with existing ones and creating a business reach far beyond the geographical boundaries. It should be noted, however, that trade shows have political linkages that may need to be considered and navigated when considering joint participation. Recommendations for effective participation in trade shows are provided in Annex 6.

Near East Foundation 24 24 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

6. CONCLUSION AND RECOMMENDATIONS The market assessment has analyzed opportunities and challenges for the marketing of Israeli and Palestinian olive oil, particularly in the US market. It has identified trends in existing and potential markets with reference to changing consumer’s needs and behaviors that affect demand for olive oil. The olive oil industry can provide a good example of regional cooperation; olive oil sector stakeholders can demonstrate a good example of peace making and building bridges between the two sides. Based on an analysis of the information presented, the following recommendations and actions are suggested: RECOMMENDATION 1: THE STORY. The OOWB concept (Israelis and Palestinians) is well received in the US, where consumers want a good story to go along with their product (cocoa and coffee are other examples). Discussions at the Fancy Food Show, NY NOW, the Market for HOME + LIFESTYLE, and meetings with others showed considerable interest in the story of cooperation between Israelis and Palestinians (and Jordanians). This storyline should be formalized and built upon (in line with the development of the product) to construct a strong story-based marketing campaign for OOWB olive oil.

RECOMMENDATION 2: COOPERATION TO LAUNCH THE CONCEPT. Al Zaytoona, located in Salfeet (in the border area near Israel, in a prime olive production area) is recommended as a possible cooperative with which OOWB could work to develop a brand and market. The cooperative already cooperates with the IOOC and would like to build partnerships with cooperatives from other major producing countries (for example, Crete in Greece). Based on these shared goals, cooperation with Al Zaytoona could provide a foundation for OOWB’s broader goals. Al Zaytoona also works with a women’s cooperative, providing possible future opportunities for additional cooperation on value-added olive oil products (using the same label). Trade shows are an important tool in expanding marketing opportunities at the national, regional and international levels. Finally, the OOWB project should continue coordinating with the IOOC, POOC, and other local and regional actors (Ministries of Agriculture, Paltrade, etc.) in the development of the concept. RECOMMENDATION 3: PRODUCING A QUALITY OIL. While an OOWB oil can be marketed on its story, ultimately a strong quality is needed to ensure success. Olive oil should have a 12-18 month shelf life for international markets. Many specialty stores have emphasized that they prefer shipments to arrive for fourth quarter sales. • During the upcoming harvest and production season, the OOWB project should ensure that quality best practices are used in all steps of the process. The project could cooperate with SGS – the world’s leading inspection, verification, testing, and certification company – to monitor production. • It is also recommended that the project conduct joint training sessions with JOPEA (Jordan Olive Products Exporters Association) and Palestinians on improved production techniques and quality control (the Land O Lakes Farmer to Farmer program could be

Near East Foundation 25 25 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

accessed for some of these activities). This will help ensure that OOWB has a strong, quality product to share for taste testings. • The IOOC and POOC are encouraged to build regional and common standards that can be acknowledged and adopted by the government on both sides. This also applies to the trademark requirements. • Branding experts are available and known to support the development of logos and labels for OOWB products that meet U.S. labeling requirements. RECOMMENDATION 4: TESTING THE MARKET. It is recommended that the project support the organization of a test shipment of oils to the US to promote the OOWB concept through a cooperative whose mission fits closely with OOWB. The project could cooperate with Sindyanna of Galilee to test this process and develop a marketing platform, while simultaneously working to develop OOWB’s own brand and strategy (possibly in cooperation with Al Zaytoona, as recommended above). This cooperation and support is not anticipated to affect future marketing/competition as the market is large and the OOWB story unique, but will provide an important learning opportunity for OOWB market development and planning. RECOMMENDATION 5: CONSIDER MARKET DEVELOPMENT GLOBALLY. Sales to the Gulf countries and the US are established, but more market development efforts (warehousing and branding) are needed with respect to distribution to maintain these markets and expand into new markets (China and Canada especially). The project should work to develop capacities of business owners, IOOC, POOC, etc. in regional and international marketing, including e-commerce, to expand their sales under the banner of olive oil without borders. RECOMMENDATION 6: COOPERATION WITH JORDAN. The project should facilitate cross-border relationships and agreements with Jordan to increase market access for global trading. There is now a restriction on imports of olive oil from Palestine by Jordan (except for small hand carried amounts).

Near East Foundation 26 26 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 1: List of Contacts

Name Organization Location

Khaled Shtayeh Al Zaytoon Agricultural Industries Salfeet - Palestine Samir Al Masri Al Zaytoon Agricultural Industries Salfeet - Palestine Ziad S. Anabtawi Al'Ard Palestinian Agri-Products Nablus - Palestine Nasser Abufarha Canaan Burqin - Palestine Nezam Yousef Azem Farmer Sabastia - Palestine Mohammad Sholi Farmer and Community Leader Asira - Palestine Dr. Zeyad Fadah Natl Agri Research Center (NARC). Jenine - Palestine Fares Jabi Olive Expert - NEF Nablus - Palestine Ismail Abu Arafeh Oxfam Al Ersal, Ramallah - Palestine Mohammed Sawafta Oxfam Al Ersal, Ramallah - Palestine Fayad Fayad Palestine Olive Oil Council Ramallah - Paestine Haidar Hajjeh Palestinian Standards Institute Ramallah - Palestine Taghreed Shahadeh Palestinian Standards Institute Ramallah - Palestine Hanan Taha - Rayyan PALTRADE Al-Bireh-Ramallah, Palestine Shawqi Makhtoob PALTRADE Al-Bireh-Ramallah, Palestine Saleem Abu Ghazaleh PARC (Al Reef) Ramallah - Palestine Khaled Y. Junaidi PCARD Nablus - Palestine Ayman Abu Zarour Quality Control Consultant Nablus - Palestine Iklas Sholi SIBA Nablus - Palestine

Ehud Soriano Essence EVOO Kibbutz Magal - Israel Eran Galili Galili Olive Oil Bethlehem of Galilee -Israel Mazen Ali Israeli Olive Oil Council Israel Samir Muadi Miinistry of Agriculture Israel Ayala Noy Meir Rish Lakish Olive Press Center Moshav Zippori, Galilee, Israel Hadas Lahav Sindyanna of Galilee Israel

Haytham Khoury Afra Investment and Development Amman, Jordan Fayyad Alzyoud JOPEA Amman, Jordan Ruba Daghmish JOPEA Amman, Jordan Abdullah Khudruj Sama Al Majdal Food Industries Co. Amman, Jordan Yusuf S. Jabri Sunni Jabri & Sons Co. Amman, Jordan

Near East Foundation 27 27 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 2: Selected Sources for Data and Statistics on Production and Trade EU Commission's Agriculture and Rural Development website • Source for data on olive oil production, prices, balance sheets and trade data for EU and the world https://ec.europa.eu/agriculture/olive-oil/prices_en

International Olive Council • IOC statistical database on the world markets for olive oils. • Information on national olive acreage and geographical distribution of world olive resources. http://www.internationaloliveoil.org/estaticos/view/131-world-olive-oil-figures http://www.internationaloliveoil.org/news/view/697-year-2017-news/881-market-newsletter- september-2017

IndexMundi • “IndexMundi is a data portal that gathers facts and statistics from multiple sources and turns them into easy to use visuals.” http://www.indexmundi.com/agriculture/?commodity=olive-oil&graph=production http://www.indexmundi.com/agriculture/?commodity=olive-oil&graph=domestic- consumption

The Olive Oil Source • “Comprehensive resource for products, trends, and information on everything related to olive oil. Whether you are a producer seeking information on the latest equipment, a retailer of olive oil related products, or an olive oil lover…” https://www.oliveoilsource.com/page/about-us

Trade Map by the International Trade Centre UNCTAD/WTO (ITC) • “Trade Map provides - in the form of tables, graphs, and maps - indicators on export performance, international demand, alternative markets and competitive markets, as well as a directory of importing and exporting companies. Trade Map covers 220 countries and territories and 5300 products of the Harmonized System. http://www.trademap.org/

USITC Interactive Tariff and Trade DataWeb • “U.S. international trade statistics and U.S. tariff data to the public full-time and free of charge. All trade data are compiled from official data retrieved from the U.S. Bureau of the Census (an agency within the U.S. Department of Commerce).” https://dataweb.usitc.gov/

USDA Economic Research Service (ERS) Foreign Agricultural Trade of the United States (FATUS) • U.S. trade data are collected by U.S. Department of Homeland Security, U.S. Customs and Border Protection and compiled and distributed by the U.S. Department of Commerce, U.S. Census Bureau using the United States' Harmonized Tariff Schedule (HTS) of 10-digit codes. https://www.ers.usda.gov/data-products/foreign-agricultural-trade-of-the-united- states-fatus/

USDA Foreign Agricultural ServiceGlobal Agricultural Trade System • GATS includes international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present. https://www.fas.usda.gov/data https://www.fas.usda.gov/data/oilseeds-world-markets-and-trade https://www.fas.usda.gov/data/world-agricultural-production

Near East Foundation 28 28 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 3: Best Practices for Quality Olive Oil Production Ensuring best practices during the different processes of the production cycle promotes the production of high-quality olive oil and improves marketing opportunities. Best practices at the different stages of production include: • Cultivation stage: Choosing the best land and location, preferably a high windy spot directly facing the sunrise and sunset, increases the productivity. Planting in low-lying areas decreases the productivity of olive oil due to high levels of humidity. • Plowing stage: Plowing process is essential to secure proper aeration for the root zone and to allow water and dissolved fertilizers to better infiltrate into the root zone. This will affect positively the production of olive fruits. • Fertilization stage: The purpose of this stage is to compensate the soil for the needed minerals. Different practices are used in the fertilization process. Farmers use both organic and chemical fertilizers for olive trees. The best practice varies from one soil type to another and from certain agro climatological zone to another. • Weeding stage: Removing undesired plants surrounding the olive trees that reduce the absorption of minerals took place during the weeding stage. This stage affects the strength of the tree, the fruit quality, and can aid in increasing the productivity. • Irrigation stage: Watering the olive trees in the right way has a strong positive impact on productivity. • Targeting specific pests: The olive fly (Bactroceraoleae) is considered a serious pest in the cultivation of olives. The oil obtained from infected olives has a high acidity level and a higher peroxide value, producing a low-quality oil and a shorter shelf life. • Harvesting stage: the manual collection is considered the best way of harvesting, providing a higher quality that special shaking machines. • Collecting stage: At this stage, it is important that spoiled fruit is excluded from batches so a higher quality oil is produced. • Transportation stage: Sackcloth and plastic boxes are preferable to plastic bags to prevent warming, the proliferation of fungi, and acidity. o Plastic boxes with holes: the best way to move olive fruit to the pressers after harvesting, it keeps the olive fruit in a good atmosphere (not a high temperature). Boxes should remain in the shade. o Sackcloth bags: an acceptable bag for transportation o Plastic or nylon bags: considered the worst method for transportation because it decreases the acidity level of the olive fruit and changes the taste of oil produced. • Cleaning batches stage: Washing the fruit and getting rid of dust and any outer contaminant is important before pressing. • Mellowing olive stage: Ignoring this process results in a bitter taste of olive oil. It is preferable that it is applied at 27oC. • Pressing stage: Press the olive fruits in temperature-controlled pressers within 48 hours after harvesting with suitable water temperature.

Near East Foundation 29 29 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• Storage stage: Air, heat, and light affect the olive oil’s quality during storage. To avoid rancidity of olive oil, it should be stored it in a cool place in clean, temperature-controlled stainless steel containers topped with an inert nitrogen gas. Stainless steel containers are used for storing olive oil. These are both long and thin in shape to reduce the surface area that is exposed to air, or larger in shape and topped with an inert nitrogen gas. Plastic containers, especially at the level of the consumer, are not preferred as they contain carcinogenic materials and negatively impact olive oil at high temperatures. It is important to keep the oil stored away from light, heat, and air to maintain its quality. According to olive oil business owners, the following is the ranking of the best to worst methods for oil storage. 1. Stainless steel containers 2. Crock containers 3. Glass containers 4. Oil tanks 5. Plastic containers

Near East Foundation 30 30 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 4: Olive Oil Prices

Olive Oil Prices in the Palestinian Market

Selling prices of olive oil in the Palestinian Market 2004 – 2014

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Price 6 9 14 17 19 35 22 20 16 17 23-26 (NIS)

Olive oil average selling prices per year according to POOC

Price (NIS)

35

25.5 22 19 20 17 16 17 14 9 6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Olive Oil Prices in the Israeli Market

Average Prices and importing Costs in the Israeli Market

Year 2006 2007 2008 2009 2010 2011 Cost of 20.18 17 18.89 19.83 16.99 16.99 imported oil in Israel Price of the 19 17 20 18 19 18 IOOC

Near East Foundation 31 31 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Average Monthly Producer Prices for Extra Virgin Olive Oil, Two sources: October 2013 – July 2017 (IOC) and July 2016-June 2017 (index mundi)

Extra Virgin Olive Oil : Monthly Prices, July 2016-June 2017 Olive Oil, extra virgin less than 1% free fahy acid, ex-tanker price U.K., US $ per MT 4,800.00

4,600.00

4,400.00

4,200.00

4,000.00

3,800.00

3,600.00

3,400.00 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17

Near East Foundation 32 32 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 5: Example of Quote with US warehouse landed price and Chart to estimate packing of pallet for export

Near East Foundation 33 33 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Source: http://sungrovefoods.com/

Near East Foundation 34 34 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 6: Effective Trade Show Participation The following are the steps recommended to participate in trade shows: 1. Select the proper trade show There are thousands of trade shows happening all over the world (many relevant to olive oil), making it virtually impossible for any business to participate in every one. As a result, it is necessary to carefully select the right trade show for participation. To learn about current trade shows, information can be accessed at Eventseye (http://www.eventseye.com/) or at Trade Show News Network (http://www.tsnn.com/). Quality trade shows are sold out well in advance, and therefore research and selection must be conducted early. Things to consider in selecting the appropriate trade show include a number of visitors in the last couple of years, the type of visitors, availability of educational sessions, entry fees, booth sizes and layout, and additional advertising and promotional options available. 2. Earlier preparation for booth design An attractive booth should be prepared, using either in-house capabilities or an external designer. It is important to consider how information will be displayed and the planned interaction with buyers. 3. Planning the trip in advance Planning the trip includes: • Decide on what products will be put up on display. • How will the products be shipped to the show and the shipment procedures and the shipment timeline? • When will the booth be set up? What is the stall handover time? • Marketing collaterals that should be taken; business cards, company brochures, product leaflets, gifts to visitors, price sheets, and roll up standees. • Number of representatives • Preparing travel arrangements in advance. 4. Active participation The true success of participating in a trade show is to come back with a handful of closed orders and several more in the pipeline. To achieve active participation, the following are recommended: • Inform prospective customers about the intention to participate in the show by sending out invitational emails to them. • Schedule meetings using the organizer’s facility in addition to offering enough information that warrants the potential customers asking for a meeting.

Near East Foundation 35 35 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

• Use every opportunity to network through exchanging cards and start conversations. • Promote participation in the trade show across all social media networks like LinkedIn, Facebook, Google+ and Twitter. 5. Proper follow-up Follow up is a critical step. Upon coming back from the trade show, a thank you email should be sent to all people met during the show. Sometimes it is necessary to assign a team member to follow up with a personal phone call to each person. In addition, it is recommended to reinforce the company’s product through sending the product brochures and price lists once again to all targeted customers.

Near East Foundation 36 36 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 7: IOC List of Palestinian Exporters and Importers of Olive Oils and Olive-Pomace Oils

Near East Foundation 37 37 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 8: Checklist for Preparing a Test Shipment of Samples

Step 1: Identify 3 Palestinian olive mills with which to work

Ø Develop agreements and plans for cooperation

Step 2: Organize quality control and lab testing for samples

Ø Develop scope of work for quality control and testing Ø Regular monitoring throughout harvest/pressing to ensure high quality of oil produced

Step 3: Put in place import shipping supply chain

Ø Work with partners developed during test shipment

Step 4: Design draft labels and samples

Ø Develop scope of work for designer Ø Determine bottle size, printing options, etc. in coordination with designer

Step 5: Notify buyers that OOWB samples will be available

Ø Contact list of individuals interested during Fancy Foods Show

Step 6: Provide samples to buyers and obtain feedback/commitments

Near East Foundation 38 38 Market Assessment: Opportunities for Palestinian and Israeli Olive Oil Producers

Annex 9: Olive Oil Without Borders – The Story8

Olive farming is a cornerstone of the local rural economy in the West Bank and Israel where more than 100,000 families depend on the olive oil industry. The land belonging to farmers extends back generations upon generations and therefore has meaning beyond economic value. In a region where conflict and borders tend to shape everyday life, NEF’s OOWB program aims to bring the mutual love that Palestinian and Israeli farmers have for their land to the forefront in order to foster shared economic opportunities. These efforts have resulted in increased production and revenue in the region’s olive sector and a more positive perception of “the other side” reported by those who have participated.

“At an exhibition in Italy, there was a flag of the Palestinians and a flag of the Israelis sitting in the same place, Palestinian oil, and Israeli oil. For me it was something. ‘Wow,’ I thought to myself. I believe that we— Palestinians and Israelis—will sell something together in one bottle. I believe there is a market for people who believe that the Palestinian and Israelis can sit together and sell something as one.” – Simha Helbrin

“OOWB is one of the most important projects in the region, because it enables Palestinian and Israeli farmers to sit together and share the problems and challenges we face in the olive field. This is important for small farmers and producers as now, together, we can produce a higher quality of olive oil so that we can compete in the global market. This also gave me a chance to get to know the Palestinian people, travel to their villages, and discover their culture. This is the first time we have been able to come together as farmers – not as soldiers or settlers.” — Ayala Noy Meer, an Israeli olive mill operator.

8 Nef Launches Olive Oil Without Borders III| Near East ... (n.d.). Retrieved from http://www.neareast.org/nef- launches-olive-oil-without-borders-iii/?s=c

Near East Foundation 39 39