STORIES OF IMPACT IN AGRIBUSINESS* Helping Local Companies Increase Olive Oil Exports in the West Bank and Gaza IFC worked with eight olive oil companies— representing the majority of the sector in the West Bank and Gaza—to develop supply RESULTS AND IMPACT chains, improve quality, and increase exports. • Increased olive oil exports by 35 percent IFC advised the companies on how to access in the first three years of project implementation, from $3 million to $4.4 international markets, obtain financing, million. find ways to use byproducts from olive oil • Established cooperation between a US processing, and reduce negative environmental importer and SMEs in the West Bank and impacts. Gaza. • Established a unified marketing As a result, olive oil exports increased by 35 framework through a new brand called percent in the first three years of this project’s Daskara which represents the industry implementation. in international markets. • Eight local SMEs were trained on: • Financial management, credit, and other aspects of financing, and gained exposure to global markets. • Traceability standards, using a specially- developed IFC Traceability Manual. 360 farmers in the supply chain of these SMEs also received this training. • Eight local SMEs almost doubled the retail price of their product, going from $14 per bottle to $23, thanks to stronger branding and marketing. • Five out of eight SMEs that worked with IFC became ISO and HACCP certified, by complying with international food “IFC’s level of involvement and concern has been a key safety standards. ingredient in the success of this project, assisting our company • 110 employees of bottling companies to increase its olive oil exports six-fold by accessing new and their suppliers were trained on testing, packing, and export procedures markets.” for olive oil. —Dr. Osama Odeh, General Manager of Agri Technochemical, • Completed an environmental one of the eight olive oil companies that worked with IFC assessment on the use of waste water as a fertilizer. * This series provides examples of IFC’s impact, expertise and lessons learned working with clients and partners. The Opportunity IFC’s work with these companies aimed to: • Increase their compliance with international food Agribusiness and agriculture account for about two-thirds standards and implement basic traceability programs. of total employment in the West Bank and Gaza. Olive oil • Establish a framework for marketing olive oil for production, in particular, is a major driver of economic export. growth in the region and provides jobs to more than • Enhance access to finance for producers and related 100,000 families. businesses. The olive oil sector has great export potential. Production • Improve their environmental performance through exceeds local consumption and olive oil, as a non- waste minimization and recycling, as well as perishable product, is less affected by political turbulence. utilization of industry byproducts. However, the olive oil industry in West Bank and Gaza As a result of the project, a 500 ml bottle of olive oil faces several constraints, such as weak quality control, under the newly developed brand Daskara was sold for poor packaging and labeling, inadequate supply chain $23 from distributors. Prior to IFC’s program, the same links, and a lack of marketing know-how. Furthermore, sellers received an average wholesale price of $14 for the the historically fragmented agricultural sector and same amount and quality. Several shipments at the new post-conflict economic challenges make it difficult to price have already been made to the US, where the new consolidate a larger number of small growers and achieve brand was launched. consistent quality across the sector. In addition, current olive processing practices are particularly harmful to the IFC, a member of the World Bank Group, is the largest environment. global development institution focused exclusively on the private sector. IFC’s Approach IFC aims to address key challenges faced by the olive IFC CLIENTs Al’Ard Palestinian Agri-Prod- oil sector in conflict-affected West Bank and Gaza such ucts, Al Reef For Investment And Agricultur- as limited access to finance, markets and best practices. al Marketing Company, Kanaan Fair Trade, Towards this end, IFC works with farmers, millers, Agri-Technochemical, Zaytoon, Uawc–Olive bottlers, producers, and related businesses and creates Mountain, New Farm, Tayeba important linkages in the industry. More specifically, IFC worked with eight Small and Medium Enterprises (SMEs) in the West Bank and Gaza, namely Al’ Ard Palestinian Agri-Products, Al Reef for Investment and Agricultural Marketing Company, Kanaan Fair Trade, Agri-Technochemical, Zaytoon, UAWC–Olive Mountain, New Farm, Tayeba. ifc.org/agribusiness AskSustainability@ifc.org oct 2014