A value chain analysis for sustainable development of olive oil agro-industry: the case of Algeria

Melkhire Boudi, Khaled Laoubi, Fouad Chehat


This study analyzes the performance of the olive oil value chain in Algeria and identifies the bottlenecks that must be overcome to achieve sustainable development. Surveys were carried out and interviews conducted during a five-year period. Value chain approach was used as a tool to analyze the entire chain. The results showed that despite the value chain was found to be profitable for all chain actors, significant shortcomings and bottlenecks continue to undermine the overall development of the value chain. Major bottlenecks to improve productivity and value added were the poor agricultural practice and institutional environment; issues related to natural, structural, technology and economic environment; lack of market transparency; market uncertainties; lack of quality control; absence of traceability monitoring system throughout the chain; lack of certification and labelling; almost total absences of organized structures exist around the product; and limited effectiveness of agricultural extension services with low involvement of farmers and millers in professional organization related to olive oil industry. However, Algeria’s olive oil value chain has great potential for future development and currently, the country has an important advantage in terms of current development policies, the use of technology, and the extension of olive tree acreage. Nevertheless, the following upgrading strategies are recommended to enhance sustainability: improvement in product and process; changing in functional position; access to market; supply; cross distribution chain; and intra-chain linkage

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DOI: http://dx.doi.org/10.12895/jaeid.2016110.469