Italian olive growing – which represents between 15% and 18% of world production – is experiencing a crucial moment. The challenges posed by climate change, the fragmentation of agricultural properties and the need for innovation and sustainability are putting its competitiveness at risk. Alongside traditional difficulties, however, a new interest is emerging from international finance, a sector that has so far been little involved in olive growing.
The current challenges of Italian olive growing
Olive growing is considered strategic not only for its economic importance, but also for the role it plays in the conservation of the rural landscape and environmental sustainability. However, structural problems such as fragmentation of properties, high production costs and the growing impact of climate change limit its potential. High temperatures, prolonged drought and extreme weather events are negatively affecting the yield and quality of oil.
The new interest of international finance
In recent years, Italian olive growing has begun to attract the attention of international investors looking for opportunities in strategic and sustainable sectors.
This interest is based on several factors:
a. economic diversification: olive growing represents an interesting option for diversifying investment portfolios, combining it with stocks, bonds and other assets to reduce risks;
b. Inflation protection: During periods of inflation, agricultural products, such as olive oil, tend to increase in value, providing a stable source of income;
c. ESG (Environmental Social Governance) attractiveness: refers to the evaluation of an investment based on environmental, social and governance criteria. This type of investment takes into account not only financial returns, but also the impact that a company has on the environment, society and its business management practices. sustainability makes the olive sector an ideal candidate for investments that meet these environmental, social and governance criteria.
Statistics on the return on investments in the olive sector
According to a recent analysis, Italian olive growing has shown positive economic margins, especially in the southern regions. Average production, however, has decreased by 33,2% in the last 10 years, despite a 42% increase in world consumption and a 38% increase in world production. This suggests that many Italian olive companies are still struggling to be globally competitive.
Investment opportunities and innovative models
The growing interest of international finance is leading to the emergence of new investment models in olive growing. Alongside traditional bank financing, innovative approaches are emerging, including:
1. Public-private partnerships: shared projects between private companies and public institutions to develop modern infrastructures and technologies;
2. specialized investment funds: financial vehicles dedicated to sustainable agriculture and innovation in the olive sector;
3. Green financing: tools designed to promote environmentally friendly agricultural practices.
These models not only promise to modernize the sector, but also to create a more resilient and competitive ecosystem, capable of facing future challenges and valorizing Italian production on global markets.
The role of large consulting firms
A significant example of this new interest is represented by companies such as CBRE (Coldwell Banker Richard Ellis), a leader in real estate consulting and wealth management globally.
The entry of these companies could bring advantages to the olive sector, offering:
i. advanced financial solutions: access to capital to modernize infrastructure and production processes;
ii. innovative marketing strategies: promotion of Italian olive oil in premium markets;
iii. resource optimization: development of sustainable management models for agricultural land and infrastructure.
In particular, CBRE could support olive growing by identifying investment opportunities and facilitating access to new markets, contributing to the growth of the sector.
Towards a sustainable and competitive future
The integration of innovative financing and advanced technologies could facilitate the penetration of Italian oil in high-end markets, guaranteeing added value for both producers and consumers. Italian olive growing is not only a symbol of tradition, but an evolving sector, ready to seize the opportunities offered by this new financial interest.
With the support of international finance, Italian olive growing has the opportunity to consolidate its world leadership, demonstrating that the meeting between tradition and innovation is the key to successfully facing the challenges of the future.
Dining and Cooking