Current situation and perspectives of the olive grove in China

[:en]From IDEAGRO we want to share with you this interesting information about the situation of the olive grove and the olive oil market in China, since it seems especially relevant given the current situation of the olive grove in Spain.

Currently, Virgin olive oil is achieving enormous prestige among Chinese consumers, for its dietary and nutritional qualities and for being a synonym of a natural and healthy product. Virgin olive oil imports into the Chinese market in 2012 exceeded 40,000 tons with a CIF value of 120 million euros.

Spain has a share in this market greater than 60%, being Spanish virgin olive oil "first of mind" for Chinese consumers. The growth of imports of virgin olive oil in China has been spectacular, having multiplied by five in the last five years, that is, in the period 2008-2012.

In this situation there is great interest in developing olive cultivation in China, not only by local authorities but also by international operators, including major Spanish groups.

Below is a brief summary of the current situation of olive cultivation in China:

China has 300,000 hectares with a latitude similar to that of the Mediterranean and climatological and edaphic characteristics adapted to the production of olive trees. These lands lie along the upper-middle basin of the Yangtze River and its tributaries such as the Jinsha River, Jialing River, and Hane River. The most suitable area for the cultivation of olive trees is located in the region located between the provinces of Shaanxi, Gansu and Sichuan.

The presence of olive trees in China dates back to the 60s, when Chu En Lai paid a visit to the Republic of Albania invited by Enver Hoxa, he was amazed at the longevity and qualities of the olive trees and the products made with the olives and ordered to bring seedlings and technicians to China to start up the first crops.

Currently the olive plantations in China are located in the provinces of Yunnan, Sichuan and Ganzu, its most outstanding characteristics being:

• YUNNAN PROVINCE: It is one of the first provinces that introduced olive cultivation in China. In 1964, 2,200 seedlings of 5 different varieties were brought from Albania. In the early 1980s, there were more than 10 autonomous cities in Yunnan province with a total of 5,300 hectares under cultivation. In 2015 it is expected that 75,000 hectares of olive groves will be exceeded.

• SICHUAN PROVINCE: According to Sichuan Province government planning, the olive cultivation area will reach 53,000 hectares in 2015. Olive cultivation is concentrated in the areas of Dazhou, Guangyuan, Mianyang and Liangshan.

1. Dazhou City: Olive cultivation was introduced in this city in the 70s, it is the city that produces the most olives in the Sichuan province. Kaijiang district is considered the capital of olive trees in China, it currently has an area of 5,250 hectares and an annual production of 280 tons of olive oil and 2,000 tons of olives. Dazhou olive oil has been recognized as China's geographical trademark protection product. The most important company has 3 production lines (olive oil, olive wine and cosmetics) with equipment imported from Italy.
2. Guangyuan City: it has olive plantations of 9,600 hectares. In 2011 the total production of olives was 1,000 tons. Guangyuan has 5 olive oil processing companies: Shubei, Ziyang, Rongshengyuan, Qingyuan and Rongfei). Guangyuan Olive Oil of Ziyang Company has been recognized as a trademark with China Geographic Mark Protection.
3. Mianyang City: At the end of 2011, a local public company started the project of realizing the largest plantation in China with more than 13,000 hectares.
4. Liangshan City: Has three large plantations located in Xichang with only one company responsible for oil production.

•  GANZU PROVINCE: this province plans to reach 50,000 hectares before 2020. Main area: Wudu District and Longnan City. The cultivation area of Wudu District is about 13,000 hectares with a production of 4,500 tons of oil. The cultivation area of Longnan City is about 17,000 hectares, the annual production of olive oil reaches 6,500 tons.

[:]