The olive oil milling sector is one of the main pillars of Jordan’s rural economy, serving more than ten million olive trees spread across the country’s governorates. This sector is not merely an agricultural‑industrial activity, but rather an integrated system that connects farmers, consumers, and both local and international markets. Assessing the value of fixed assets—machinery, infrastructure, and equipment—provides an accurate picture of the accumulated investments in this sector, its readiness for technological modernization, and its ability to compete in regional and global markets.

The purpose of this memorandum is to estimate the total value of fixed assets in Jordanian olive oil mills during 2024, including machinery, buildings, storage facilities, packaging lines, and auxiliary equipment. This estimate is based on official and sectoral data, complemented by international benchmarks, in order to present a comprehensive view of the scale of capital investment and its economic and social impact.

According to data from the Ministry of Agriculture and the Department of Statistics (2024), there were 148 registered olive oil mills, of which 146 were operational. The Jordan Olive Products Exporters Association (JOPIA) and the International Olive Council (IOC) also provided sectoral reports confirming these figures and placing them in a regional and international context. Media and industry references estimated the sector’s total assets at around 200 million Jordanian dinars. International comparisons indicate that the cost of modernizing Jordanian mills is relatively lower than in Mediterranean countries such as Spain and Italy, reflecting opportunities to enhance efficiency at reasonable investment costs.

The mills were classified into three main categories—small, medium, and large—based on production capacity and the level of technology employed. Fixed assets include pressing systems (traditional and modern), stainless steel storage tanks, packaging and bottling lines, operational buildings and facilities, transport and distribution vehicles, as well as laboratory and quality control systems. This classification allowed for more accurate replacement‑cost estimates, linked to the production capacity of each category.

Financial Estimates (in Jordanian dinars):

• Small mills: JD 20,000–40,000 each, 74 mills, total JD 2.2–3.0 million
• Medium mills: JD 80,000–120,000 each, 59 mills, total JD 4.7–7.1 million
• Large mills: JD 400,000–600,000 each, 15 mills, total JD 6.0–9.0 million
• Total replacement value: JD 13–19 million

The results indicate that the replacement value of fixed assets in the olive oil milling sector ranges between JD 13 and 19 million. However, the overall market value—including land, inventories, and recent investments—reaches approximately JD 150–200 million. This gap reflects that the sector cannot be measured solely by machinery and buildings, but also by intangible investments such as human expertise, marketing networks, and the reputation associated with the quality of Jordanian olive oil.

Economic Impact: The sector provides thousands of direct jobs in operations and management, in addition to indirect opportunities in transport, packaging, marketing, and support services. It also contributes to household income in rural areas, where olives are a primary source of livelihood. Furthermore, it drives agricultural value chains and related food industries, such as soap, pickles, and cosmetics, while contributing to national exports. Jordanian olive oil is considered one of the country’s high‑value agricultural products in both regional and global markets.

Social and Environmental Impact: The sector strengthens livelihoods in villages and rural areas, reduces internal migration to cities, and helps preserve cultural identity and agricultural heritage linked to olives. Most importantly, it supports environmental sustainability by encouraging both traditional and renewable farming practices.

The olive oil milling sector in Jordan thus represents an integrated economic and social pillar. It combines significant capital investment, broad social impact, and a vital role in national food security. Developing this sector through technological modernization, quality improvement, and expanded export markets will enhance Jordan’s position as a competitive producer of high‑quality olive oil in the region and beyond.

Challenges of 2025 and the Need for Practical Solutions:
Jordan is expected to witness a significant decline in olive production in 2025 due to climatic fluctuations and various agricultural factors. This decline is alarming for a sector of this scale, as it threatens the sustainability of mill operations and undermines the utilization of investments exceeding JD 200 million in market value. Reduced local production will also directly affect consumers through higher olive oil prices, placing an additional burden on Jordanian households amid rising living costs.

Therefore, there is an urgent need to open the door to importing olives from neighboring countries such as Egypt and Syria. This would ensure mills continue operating at full capacity, maintain sector stability, and maximize the use of large‑scale investments. Such a measure would also increase local supply, help curb price hikes, and enable Jordanian consumers to access this essential product at reasonable quality and cost.

In this way, the olive oil milling sector becomes not only an economic and social pillar, but also a tool for balancing local production with smart imports—strengthening food security, protecting consumers, and sustaining national investments of this magnitude.