The olive oil market of Mainland China : The potentiality of the olive oil market on Mainland China and its accessibility for, in particular small medium, sized olive oil producers.

Abstract: The purpose of this research was to investigate the potentiality of the Chinese market for olive oil and to assess how accessible China is for in particular small & medium sized companies in order to take the initiative on the market. The research departs from the CAP subsidy reforming European olive oil sector with 2,5 million producers on their way to a less trade distorted and more export minded sector. It continues with the common generalisations about China as a potential export heaven with fruitful business opportunities and prospects for export companies. The practical questions remain: Firstly, if China is an interesting market for olive oil surpluses or not. Secondly, if the market is accessible or not for, in particular, the small-medium producer who are dominating the fragmented EU olive oil sector. By means of two SWOT analysis this research has shown that olive oil in China has limited but significant market potentiality with very good prospects. Nevertheless, in terms of accessibility, the research showed that the bulk of the medium- and small sized companies are not able to take the initiative to enter the market due to Chinese market entry threats and internal weaknesses. The solution this research suggested was to overcome the bulk of these market entry problems by the creation of an olive oil export association for the small-medium sized producers focused on exporting to China. The overall conclusion is that the key for success on the market is good cooperation with a well-connected regional-local importer and distributor.