SUBMITTED TO: HANIF SHAHZAD

FINAL PROJECT: OLIVE FARMING

SUBMITTED BY: ABDUR REHMAN SHAUKAT

MUHAMMAD SHAYAN
MUHAMMAD UMER

CLASS: BBA 4-B EVE

EXECUTIVE SUMMARY
The proposed project is designed as Olive Farming, spreading over a land area of 5 acres.
Growing olives in 5 acres with modern farm management techniques can be a long-lasting
business. The project of Olive Cultivation and marketing envisages the farming of olives and
then supply to the processing market / oil processors.
Growing Olive trees is a profitable business and olive trees have more than 1000 years of life
and it can grow on barren lands. On an average an olive plant produces 20 to 35 kg of olive fruits
per year which contain more than 20 % of oil contents. The olive fruit can be sold out in the
market at the rate of Rs. 100/- to Rs. 200/- per kg and extracted oil can be sold at the rate of Rs.
700/- to Rs. 3,000/- per liter based on the oil variety and purity. Growing Olive in 5 acres with
modern farm management techniques can be a long-lasting business.
Olive Cultivation is proposed to be located at Attock areas where wild plantation and crop
farming is common. Potohar belt are ideal places for olive farming.
The total initial project cost for setting up Olive Cultivation farm is estimated at Rs. 3 million.
Land price is not included in cost. The legal business status of this project is proposed as ‘Sole
Proprietorship’.

Importance of Olive
Olive is good source of edible oil and is also used for table purpose particularly for pickles. The
olive has not only nutritional and medicinal value, but its fat content is also free from cholesterol.
It is also used in food preservation, textile industry and cosmetic preparation along with variety
of other purposes. Olive oil is one of the few widely used culinary oils that contain about 75% of
its fat in the form of oleic acid (a monounsaturated, omega-9 fatty acid). Olive fruit due to its
nutritional and medicinal importance is a blessing of Almighty/Allah. Olive has been referred in
noble way at many places in the Holy Quran and its importance has been certified by many
saying of Holy Prophet.
 
Current market situation
Market analysis
Pakistani olive oil producers are preparing to enter the global market as 27.5 million olive
trees on more than 30,000 acres of land have been planted.
The plantation extends through Punjab, Khyber Pakhtunkhwa, Baluchistan, Islamabad and Azad
Kashmir, said a report published by Gwadar Pro on Wednesday.
Pakistan has 10 million-acre suitable land for olive plantation, almost double than Spain, which
is currently the largest olive oil producer in the world.
With an increase in the area under cultivation, Pakistan is passing through a silent revolution in
olive oil production. The sector is rapidly moving the country towards self-reliance by
introducing Pakistan’s national brand under the name of ‘Pak Olive’ by 2021.
According to the report, the Pakistan Olive Oil Council will be established under the Ministry of
National Food Security and Research to suggest policy measures for the promotion of olive oil in
the country.
Muhammad Tariq, director of Pak Olive, said within the 2019-20 season, the estimated olive oil
production capacity in Pakistan will reach approximately 1,400 tones. By the year 2027,
production is expected to reach 16,000 tones.
The government also plans to issue certifications for the marketing and branding of olive oil for
the private sector. The project targets plantations of over 50,000 acres in the country by 2022.
The available potential area for olive cultivation is about 10 million acres in Punjab, particularly
the Pothwar region, Balochistan, Khyber Pakhtunkhwa and erstwhile Fata, Azad Jammu and
Kashmir (AJK) and Gilgit-Baltistan.
According to the report, by 2024, the value of oil olive production would increase to Rs1.727
billion.
According to an expert, olive plants would help mitigate the effects of climate change.
They also provide permanent crop cover that not only saves land from erosion and further
degradation but also minimize silt load to downstream water reservoirs.
Olive orchards require less water, fertilizers, pesticides and fuel energy as compared to other
major annual oilseed crops.
Consumer Analysis
Pakistan is the importer of olive oil. There is 2 type of olive oil is available in market one is use
for cooking and other one is use for body massage. Pakistan mostly import olive oil from Spain
or Italy to full fill consumer need. In Pakistan virgin olive oil price is 3000 per liter and that is
mostly used by the Elite families of Pakistan. So, the pricing strategies that use for this is market
skimming.
Commercial use of olive oil is being increasing day by day in the country. There are number of
products wherein olive is being used, like special restaurants dealing in olive foods have also
been opened in various cites of the country. Other commercial uses include:
pizza foods,
bakery items Pickle/ sauce, Sweets preserves, Cosmetics, leaf tea, etc.
They have limited share of local olive/oil use, and mostly imported olive/ oil is being used.
Internal Environment
As our firm is new firm and, in the beginning, we do not need so much human resource and we
have 5-10 persons to take care of the land which is under cultivation. In few months we will
plant the trees after finishing the dripping irrigation then we must take care of them for 5 years.
After that we will get our first crop. Then we will increase our human resource for pressing or
crushing machinery to produce oils from olives we will need some technical workers this
machinery.

Market Target
 As this olive oil is used in restaurant, hotel and home pack its target market. Ourarea which we
will do marketing is not high-end market, but we will play in the middle market instead- because
the high-end market is intensively competitive market. We are a small enterprise; we have
limited capital for investment. As our research, we found there are big existing players such as
Sunflower oil, Corn oil, Palm oil, Rapeseed oil, Tall oil, Tung oil, Mustard oil, and so on.
The market for olive Oil is very small in Pakistan

Summary of situation Analysis

Strength Opportunities
High profit margin Can develop a strong national and
Suitable with Pakistan climate international brand
Marginal land can be utilize
Plant life is more than 100 years
Religious importance
Weakness Threats
Lack of awareness Big players response
Government subsidies Brand loyalty
Government policy

Strength:
Olive have increasing demand in Pakistan. We can use olive as multiple method such as
eating, cooking, massage. As a Muslim country we have a religions importance for olive. Olive
tree and give fruit up to 100 years so it’s a long-term investment. Olive uses less resources so it
give us high profit margin and marginal land can be used most importantly Pakistan’s climate is
suitable for olive farming.

Opportunities:
Olive production is increasing in Pakistan so the best opportunities for olive producer is that
they can export it in different cities as well as countries. Can make strong national and
international olive brand. Government of Pakistan will subsidies on olive and olive oil
production because there aim to produce 16,000 tons of olive by 2027.

Weakness:
Majority of the Pakistani can’t afford the olives and olive oils. People don’t know the benefits
of olive and olives oils and they have lack of awareness about farming it. Government don’t give
any subsides on planting and producing olives and olive oils. Increasing competition in
producers of olive and olive oil in Pakistan.
Threats:
Pakistan imports olives and olive oils and people trust imported products over local so most of
the olive and olive oil user recommend using Spain’s olive and olives oil. Black market trading
who smuggles the olive and olive oil from Spain, Italy, Greece and other countries.

Market Mix:
our firm will start to work small with the manpower of 20 persons and on the marketing line 6-
7 person. If it work well we are looking to produce different products of olives to fulfil the
consumers demand. At this time over firm only produce olive and olive oil in Attock and
distribute in whole Pakistan after that we are paling to go international. We will distribute our
product by directly consumer and also by retailer dealers such as Metro, Al-Fatah, Save Mart etc.
olive and olive oil is a suitable for cooking, for beatification, and for health purpose. However,
our firm mainly focus on 4ps rather what other generally do concentrate on some other else

Product:
 Olive Oil is suitable for cooking, health, and beauty. Speaking of cooking, Olive oil is tasty,
aromatic, and gives meals a sweet flavor. For healthy purposes, Olive Oil is composed of several
active ingredients that help the human body to reduce the risks of common diseases. For beauty
purposes, Olive oil is suitable for cosmetic functions such as adding a healthy and radiant
appearance to skin, hair, and nail.

Price:
As an olive is an expensive product so we target upper class consumers. But it also depends
upon the quality and quantity of the olive and olive oil. However, the pricing will be done as a
competitive manner but by not compromising the quality of the product.

Place:
We can deliver the olive and olive oils in the big cities of the Pakistan and then initially we
can go furthermore to export it to different counties. We will deliver it directly to stores and
massage centers in Pakistan.

Promotion:
In the start we take dealer ship form big companies who were in market form many years we
will use the method of crops as they will tell as then will start our own production. We will give
directly supply to consumers all over the Pakistan and put in stores with one marketing agent
(Retailer). Social advertisements through social media/website of the company and putting ads in
magazines as well as on TV commercials.

Implementing:
As we start our own production, we need to examine the land for the water’s availability and
minerals in soils so we can choose our fertilizer type for the land. If the land is sanded than we
go for drip irrigation for the plants, we put an application to get a government subsidy on drip
irrigation and olive plants. After getting plant it will take almost 5 years to get first crops and the
life of olive tree is estimated about 150 years. Then we will make olive oil by pressing or
crushing them, then we will finalize our product and pack it in the packing of who’s dealer we
will take and launch in the market and deliver to consumers at their door steps.
Government of Pakistan give subsidies on drip irrigation and many types of trees which include
olives it’s also their project to plant 1billion trees in Pakistan they also help farmer by giver canal
water and by putting subsidies on fertilizer.

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