a) Traditional rainfed family farms, some of which are abandoned due to lack of productivity, while others persist despite experiencing low productivity in most harvests or are maintained for non-economic reasons.

b) Professional management of olive groves, either with capital attracted by public incentives or by the entry of a younger generation of olive growers who bring a new entrepreneurial vision of the productive activity and who also introduce, although not always, the use of irrigation.

The modality that we have called Traditional (see Figure 2) is carried out through a conservative and rainfed management system. This productive activity usually fails to reach levels of profitability because the scarcity of rainfall in the driest regions, such as Sfax, for example, is coupled with the farmer’s mentality of doing the minimum with the crop—or doing nothing more than sweeping the soil to retain as much rainwater as possible—which reduces its productivity. This model, strongly linked to local culture and varieties, involves a commitment to identity that makes transmission difficult for those owners who maintain it more for emotional than productive reasons. In the words of one of the interviewees:

“The rainfed olive grove does not bring me more than a little oil every two or three years, without economic profitability. It is for family consumption and I keep it because it belonged to my grandparents”.

Figure 2. Traditional olive grove plot (40 trees/hectares)

Source: authors.

This model is most common in the Rif and Marrakech (Morocco), Kabylia (Algeria) and Sfax (Tunisia). As a result, the oil obtained is often of low quality, consumed by the farmers themselves or sold on regional markets, often informally, which opens the door to fraud through blending with other cheaper vegetable oils⁶⁸.

The Densification with renewal model (see Figure 3) involves a more hands-on style of agriculture, as it adds to traditional management the densification of rainfed farms, which in low rainfall areas does not exceed 40 trees per ha. The objective of this model is to ensure that the new trees—in some cases with the introduction of allochthonous and more productive varieties such as koroneiki—maintain production in the long term, while the old trees decline in production until they are uprooted, which occurs when the new trees reach maturity. This process brings a new dynamism to the farms and is carried out with the advice of the technological institutes of the producing regions, among which the Tunisian regions of Sfax, Sidi Bouzid and Kairouan stand out, with the support of the Sfax Olive Institute, which contributes to changing some of the farmers’ routines by incorporating scientific knowledge into the productive activity. The impact can already be seen in the region, although assimilation, like all institutional changes, is slow.

Figure 3. Olive grove plot with densification with renewal

Source: authors.

In the case of irrigated olive groves, two management models are also recognized. The first, called Densification without renewal, involves the use of irrigation in a traditional planting framework. This makes it possible to increase the density of plants per hectare (Figure 4). This is a modernization approach based on the construction of wells supported by public subsidy projects. Examples of this model can be found in all the regions studied: profitability increases as a result of the increased availability of water. Although the work of the farm is traditional, the productive activity is managed as a business, which is reflected in the production of high-quality oils, with careful handling of the fruit at harvest and rapid milling.

Figure 4. Olive grove plot with densification without renewal

Source: authors.

The super intensification model mainly involves companies in partnership with the state, in which both local and foreign companies participate. An example of this is GVAPRO, an Algerian company with Spanish participation, which is introducing this model of super-intensive planting—more than 800 plants per hectare—in the steppe regions bordering Kabylia, where until a few years ago the olive tree served as a windbreak shrub⁶⁹.

In Morocco, this plantation model is associated with companies that reach an agreement with the state on the subsidy framework and the leasing of the land —if it is publicly owned— and commit to hiring local workers, with particular emphasis on female labor as support for mechanized harvesting. Farmer-to-farmer cooperation is not a model that has been successful in the Maghreb. However, Morocco has implemented an instrument that allows it to achieve the economies of scale that agricultural cooperation enjoys in other countries, such as Spain. This is known as aggregation, which consists of incorporating small farmers in the agro-industrial project of large companies, for which they undertake to mill their crops in the aggregator’s facilities, in order to achieve greater economies of scale and, therefore, greater profits for the small farmers as well, since:

“Many of the small farmers do not have sufficient training to form cooperatives or to market their products on their own. This project also allows them to achieve economies of scale and get a better price for their fruit”.

These agreements with the state include not only the hiring of local people and thus the creation of jobs, but also actions with a broader socio-territorial commitment, such as agreements for the construction of schools and mosques by companies, as we have seen in some of the projects carried out in the Marrakech region. However, it is in the Fès-Mèknes region that the number of hectares dedicated to the super-intensive model is increasing the most, due to the greater availability of water.

In the case of Tunisia, state aid does not have a policy of change as significant as in Algeria and Morocco, as it is based on subsidies for the modernization of farms and oil mills. However, there are some cases of super-intensification linked to investments by large companies. But it is also common for local farmers to modify the traditional plantation structure and invest in groundwater extraction, apply modern techniques for fruit maturity analysis and professionalize farm management. This is possible thanks to generational change, with the arrival of people with technical training, international culture and business relationships, which have changed the way farms are managed, fruit is marketed and connections are made within the international value chain.

Figure 5. Super-intensive olive groves

Source: authors.

In any case, the limitation arises from the use of water. Some of the regions where olive cultivation is expanding in the Maghreb have rainfall well below 400mm/m²/year, especially in the Algerian steppes, where it is less than 200mm/m²/year, and in the central regions of Tunisia, which are fed by the North-Western Sahara Aquifer System, whose abstraction rate is three times greater than its natural recharge capacity⁷⁰, increasing the problems of salinization, the elimination of artesianism and the drying up of outlets⁷¹. During our fieldwork, we were able to verify the impact of soil salinization in the Sfax region and the productivity problems it causes for some farms. Notwithstanding, local farmers are used to deal with salinization and public bodies are boosting the drip irrigation in order to minimize its effect.

The reuse of water is happening on a large scale in Argelia —16 out 144 treatment plants operating in the country are concerned with the use of purified waste­water in agriculture, irrigating more than 11.000 ha⁷²— and we could find some examples in Tunisia with some advantages to the protection of the environment —the sustainability of agricultural production and the reduc­tion of saline water intrusion thanks to the recharge of groundwater—, and the expansion of irrigated areas⁷³.

Water infrastructures are expanding. In Morocco, the solutions to the scarcity of water will come mainly from the support of more rainy regions to the driest, using a water highway to transfer surfacing resources⁷⁴. In Argelia, the construction of dams will supply an extra volume of water of 12.500 Hm³ after 2030, that is the double of the current volume of the country⁷⁵. On the other hand, Tunisia has the highest rate of groundwater using to irrigation, consequently it has the highest risk of overexploitation. Furthermore, Tunisian government is subsiding the use of photovoltaic energy in order to extract groundwater. This has led to contradictory effects to the preservation of water resources because of making the resource completely free.

The problem is aggravated by the fact that the irrigation requirements of the super-intensive plantation models are much higher than those in Europe, which average about 2.500 m³/ha/year⁷⁶, reaching 9.000 m³/ha/year in the Sfax region, according to data provided by the owners of these farms and confirmed by technicians from the Sfax Olive Institute, due to the lower rainfall in the region, which averages about 250mm/m²/ha/year. It should be noted that the needs of the olive tree are the same, since the most suitable varieties for this plantation model are Koroneiki and Arbequina—Arbosana, which is widely used in other Mediterranean regions, is less able to withstand water salinity—instead of the traditional varieties better adapted to each region, such as Chemlal, Chemlali or Picholine Marocaine, among others. This poses a challenge to the long-term management of super-intensive farms, especially in the Algerian steppe and the central regions of Tunisia, where they are beginning to expand. In other regions, such as northern Tunisia, Fès-Mèknes or Marrakech, super-intensive farming is irrigated with water from aquifers fed by the Atlas Mountains, so the risk of water scarcity, while present, is lower.

Yet, the new technologies introduced on irrigation equipment are improving the efficiency of the use of water: drip irrigation, digitalization of systems, soil moisture sensors and others are deploying in the region quickly, thanks to the implication of big companies but also of the governments, especially supporting smallholders. However, the governance of the water resources is poor: the diversity of the bodies involved and the low level of coordination constitute a barrier for the best use of water in agriculture⁷⁷.

On another organizational level, regardless of the density of planting, within a strategy of differentiation between quality oils, we find the recent incorporation of organic production, which has a very attractive market in the European Union. In fact, the most traditional form of olive cultivation is already organic, since it does not apply chemical products, but uses a natural approach to cultivate the plant. However, the arrival of a new generation of better educated farmers with international experience and culture has set in motion a strategy of irrigated plantation management, with modern machinery for harvesting, scientifically validated ecological criteria and organic certification. The process includes the introduction of alternative crops that complement the olive grove, such as fodder crops or legumes, and the introduction of livestock for fertilization. In some cases, even the irrigation ponds are managed organically instead of using chemicals to prevent the filters from clogging. This is achieved by introducing algae-eating fish and microfauna, as we saw on some of the farms we visited in the Sfax region.

Two processes of change can also be observed in the agro-industrial sector. The first is related to the super-intensive model, with the installation of modern mills linked to investments co-financed by the state. This is particularly the case with entrepreneurial initiatives in the regions of Fès-Mèknes and Marrakech, but also with the Algerian strategy of super-intensification. The olives are harvested at the right time, thanks to the replacement of tradition with technical analyses that indicate the time of greatest yield for the chosen quality. These new routines improve the quality of the product, allowing access to new markets, both national and international, in bulk or under private label. The second change focuses on the modernization of oil mills and the management of oils from the perspective of the search for quality bulk. In both cases, the incorporation of European technology, mainly German, Italian and Spanish, brings maximum efficiency to the process. Although it is not yet a majority proportion, this change is led by the younger generations, where we find innovative projects aimed at boosting the local market. It is a combination of tacit knowledge and the incorporation of new technologies that makes it possible to obtain a final product linked to tradition and terroir, but with the quality demanded by the new market conditions.

Nevertheless, even in the most traditional regions, the strategy of differentiation based on territorial brands is rare. Despite the institutional impetus behind these initiatives, some of the specialists interviewed recommend focusing mainly on the production of organic oils as a differentiating element, which are in greater demand in the European Union, rather than on obtaining designations of origin or protected geographical indications:

“Most of the time they do not contribute to a greater attraction of consumers to these oils”.

Despite all the processes of change and innovation that are underway, most of the productive activity is carried out with traditional or two-stage olive mills, which are already out of use in Europe due to the risk associated with the management of liquid waste, which is highly polluting to water courses. In addition, the pollution of olive groves close to population centers is increasing as a result of poor management of solid urban waste, which poses major challenges for commercial projects related to production quality and environmental protection or to olive oil tourism.

Discussion

If we understand, from Schumpeter⁷⁸, that innovations are deviations from the behavioral routines of economic actors, it is clear that technological changes require organizational transformations, which affect business strategies, including those of farmers. However, given the slowness of institutional change in development processes, especially in more traditional activities, there is a coexistence of strategies and organizational models before the winning combination imposes its success on other models and techniques, which are then condemned to obsolescence.

The innovations introduced into the agro-industrial activity by large companies that have signed agreements with the state spread fairly rapidly throughout the region, since they cannot be exploited monopolistically. As a result, those innovations in the productive activity that show higher yields than the previous systems of technological organization are imitated⁷⁹.

The change that is taking place in the region depends on three fundamental factors that act as an external shock⁸⁰: the development of international markets, the incorporation of foreign technology, and the emergence of local entrepreneurs with capital, either in collaboration with external entrepreneurs or with the arrival of new generations of farmers and agro-industrial entrepreneurs who have the productive know-how of tradition and the ownership of land or industrial facilities granted by inheritance. In the latter case, external influence is crucial, but it comes from the incorporation of knowledge and institutional know-how that local actors have acquired abroad and through contacts with foreign individuals and organizations. This external immersion has introduced elements of change in the local production function, thanks to the exploitation of organizational, cognitive and institutional proximities⁸¹ and other proximities of a temporal nature that keep the preceding ones alive⁸².

The process is path-dependent, not only because of the productive history itself, which is part of the culture of the region, but also as a consequence of the impact of physiographic conditions on agricultural activity. The modification of routines, such as earlier harvesting, the alteration of production patterns, the introduction of a higher quality product, etc., depends on the skills of local actors. And these are acquired or modified thanks to a set of organizational and cognitive factors that determine the combination of the production set of the agro-industrial firm⁸³: on the one hand, there is the fusion of tacit and codified knowledge, acquired during international sojourns or introduced through business collaboration agreements; on the other hand, there is the capital invested by large companies external to the farming operation. The latter also has an endogenous component due to the restructuring of traditional farms through the introduction of dynamic management and/or a focus on an organic strategy. In any case, the new management models are aimed at markets that are more demanding in terms of quality and at improving the rural environment, in line with rural development strategies⁸⁴.

Vicious circles are present in the management of water. The globalization of the crop has led to a loss of profitability of rainfed olive groves, conducting farmers to intensify their production, incorporating more technology, more energy and more water. In addition, olives trees need less water than other crops, such as fruits or cereals, encouraging new irrigated lands, feeding back the cycle of irrigation. In regions where rainfall is scarcer, more irrigation is needed, so the sustainability risks increase, especially in the scenario of global warming and climate change, which will widen the differential between rainfed and irrigated land and, as a consequence, will intensify the process again.

Conclusions

This paper presents a novel and evolutionary perspective on the transformation of olive groves in the most productive regions of the Maghreb. Although it shares the limitations of studies that focus on a close-to-the-land analysis of changes, it compensates by providing a rich and qualitative exploration of the process through the firsthand experiences of its key participants.

The transformation taking place in Maghreb olive groves is the consequence of changes adopted by both business organizations and local farmers and entrepreneurs. Technological innovations are driving institutional change, resulting in agreements between local stakeholders, as well as with international companies, supported and encouraged by state agencies. Thus, the rural development strategy is rooted in a top-down approach, but its effects also permeate endogenous development initiatives.

Achieving rural development necessitates technological, institutional and organizational adaptation, all of which require investment and the introduction of new knowledge. It also involves the incorporation of both formal and informal standards, and the development of human resource capacity to introduce and adapt innovations. This process requires the adoption of routines that drive changes in the productive and commercial behaviors of farmers and others involved the value chain. Consumers also play a role in this transformation by demanding products that are aligned with society’s evolving values, including greater environmental awareness and a deeper understanding of product origins, production processes, and the ethical conduct of all actors involved.

The integration of new skills, adopted technologies and updated production models are combined with traditional know-how, preserving the essence and continuity of patterns of behavior within local companies. This dynamic facilitates the region’s integration into the globalized landscape, not merely as a supplier of commodities, but also as a competitive force offering high-quality, distinctive products obtained through the use of available technology. By embracing external knowledge, the Maghreb region has unlocked the potential for rural development linked to the olive sector, overcoming the lock-in effect and paving the way for innovative paths of productive diversification.

Therefore, in this process of change, two clearly differentiated types of relationships emerge: those established between the local actors of the traditional agro-industrial system, bound by strong connections (bonding ties), and those developed between the new actors that join the productive activity and the external companies that bring innovative knowledge to the activity (bridging ties). Here, the pipelines of these European companies, owners of plant nurseries adapted to the new super-intensive systems, play a fundamental role as transmitters in an interactive process with local farmers, building bridging capital that permeates the productive activity of the region.

The territorial impacts of these processes alter the relationships between actors, modify the strategic roles of organizations and, in the case of agriculture, change land use, natural resource management, and the participation of productive activities in the interterritorial division of labor. The final outcome of these transformations is uncertain and depends on the choices made by local actors in response to the challenges they encounter. Development processes are not linear, but rather the result of diverse interactions between their components. In the case of the Maghreb olive sector and other similar examples, the evolution of international olive oil markets, climate change, the management of the scarce water for irrigation, technological dynamics and consumer needs and values all play a crucial role. These determining factors turn the process of regional economic development into a wicked problem, given the characteristics of path dependency and adaptive behavior. Addressing this complex problem therefore requires deep thinking to understand and navigate its intricacies⁸⁵.

Acknowledgements

This work has received funds from the Instituto de Estudios Giennenses of the Provincial Council of Jaén. We want to thank the time and interest of Morocco`s, Argelia's and Tunisia's people that have taken part in the field work.

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_______________________________

¹ Benassi; Labonne, 2004. Mokrani; Sai; Dhehibi, 2011. Rouibah; Belabbas, 2022.

² Keys, 1970.

³ The production and consumption data in the tables are in kilograms. One kilogram is equivalent to 1.11 liters.

⁴ Rodríguez-Cohard; Sánchez-Martínez; Garrido-Almonacid, 2020.

⁵ FAO, 2015. Rouibah; Belabbas, 2022. Saidi; Diouri, 2017.

⁶ Sayadi; Erraach; Parra-López, 2017.

⁷ Prats-Rico, 2016.

⁸ EEA, 2019.

⁹ FAO, 2016.

¹⁰ Moriondo et al., 2013.

¹¹ Vilar; Pereira, 2018.

¹² Gómez-Espín, 2019.

¹³ Morgado et al., 2022.

¹⁴ Nelson; Winter, 1982.

¹⁵ Vázquez-Barquero, 2002.

¹⁶ Pérez, 2010.

¹⁷ Rodríguez-Cohard; Sánchez-Martínez; Gallego Simón, 2019.

¹⁸ Becattini, 1979. Fuà, 1983. Garofoli, 1992. Stöhr, 1981. Vázquez-Barquero, 1987.

¹⁹ Schumpeter, 1934; 2005.

²⁰ Hirschman, 1958. Lewis, 1954. Myrdal, 1957. Rosenstein-Rodan, 1943.

²¹ Lucas, 1988. Romer, 1986; 1990.

²² Vázquez-Barquero; Rodríguez-Cohard, 2016.

²³ Commons, 1934. Mitchell, 1967. Veblen, 1899.

²⁴ North, 1986; 2005. Williamson, 1985.

²⁵ Gerritsen et al., 2019.

²⁶ Boschma; Martin, 2010. Hodgson,1993.

²⁷ Martin; Sunley, 2006.

²⁸ Schmidt et al., 2023.

²⁹ North, 1990.

³⁰ Rodríguez-Cohard; Sánchez-Martínez; Gallego-Simón, 2017.

³¹ Williamson, 2000.

³² Acemoglu; Robinson, 2008.

³³ Simmie; Martin, 2010.

³⁴ Margarian, 2013.

³⁵ OECD, 2006. Pérez 2010.

³⁶ Rodríguez Cohard; Sánchez-Martínez; Garrido-Almonacid, 2020.

³⁷ Nelson and Winter, 1982.

³⁸ Polanyi, 1967.

³⁹ Teece; Pisano, 1994.

⁴⁰ Bathelt; Malmberg; Maskell, 2004.

⁴¹ Martin; Sunley, 2010.

⁴² Boschma, 2005.

⁴³ Granovetter, 1973.

⁴⁴ Freeman; Soete, 1997.

⁴⁵ Lange; Schmidt, 2021. Nelson, 1993.

⁴⁶ Alchian, 1950.

⁴⁷ Maillat, 1995.

⁴⁸ Rodríguez-Cohard et al., 2022.

⁴⁹ Shearmur, 2015.

⁵⁰ Neuman, 2011.

⁵¹ Carson et al., 2001.

⁵² Burns; Grove, 2009.

⁵³ Khan, 2014.

⁵⁴ Hristov; Chirico; Ranalli, 2022.

⁵⁵ Etzkowitz; Leydesdorff, 2000.

⁵⁶ Glaser; Strauss, 2012.

⁵⁷ Berelson, 1952. Sola, 1959. Maxwell, 1996.

⁵⁸ Mayring, 2020.

⁵⁹ Braun; Clarke, 2006.

⁶⁰ Direction de la Stratégie et des Statistiques, 2020.

⁶¹ Mouloud, 2014.

⁶² Djediai et al., 2016.

⁶³ UNESCO, 2009.

⁶⁴ Hamed et al., 2018.

⁶⁵ Acacia Waters; The Salt Doctors, 2021.

⁶⁶ Direction de la Stratégie et des Statistiques, 2020, 41.

⁶⁷ Rodríguez-Cohard; Sánchez-Martínez; Garrido-Almonacid, 2020.

⁶⁸ Lamani; Ilbert, 2016.

⁶⁹ Hadjloune et al., 2021.

⁷⁰ UNECE, 2020.

⁷¹ Acacia Waters; The Salt Doctors, 2021.

⁷² Acacia Waters; The Salt Doctors, 2021.

⁷³ Hamrita; Rejeb, 2019.

⁷⁴ Hssaisoune et al., 2020.

⁷⁵ Ouamane; Sekkour; Athmani, 2022.

⁷⁶ Rodriguez-Cohard; Sánchez-Martínez; Garrido-Almonacid, 2020.

⁷⁷ Acacia Waters; The Salt Doctors, 2021.

⁷⁸ Schumpeter, 1934.

⁷⁹ Maillat, 1995. Rodríguez-Cohard; Sánchez-Martínez; Gallego-Simón, 2017. Rodríguez-Cohard et al., 2022)

⁸⁰ Schienstock, 2007.

⁸¹ Boschma, 2005.

⁸² Zhang; Huang, 2021.

⁸³ Teece; Pisano, 1994.

⁸⁴ Ploeg; Roep, 2003.

⁸⁵ Foster, 2005.