Commercialization of Agriculture: Olive farming in Al Jouf Province, Saudi Arabia

This study focuses on the commercialization of agriculture in the context of olive farming in the Al Jouf region of Saudi Arabia. It aims to determine the outcomes of agricultural commercialization and agrarian change in terms of labour, livelihood, land, and economic linkage. The study also identifies the key factors influencing social inequality and dispossession caused by agricultural commercialization and analyzes the main models of commercialization of agriculture present in olive farming at Al Jouf. The research methodology involves interviews conducted at the Al Jouf region, qualitative methodology and approach, sampling techniques, and analytical methods employed.

Commercialization of
Agriculture: Olive farming in
Al Jouf Province, Saudi
Arabia

Table of Contents
Overview of the topic..............................................................................................................................3
Problem statement...................................................................................................................................4
Rational of the study................................................................................................................................4
Significance of the study.........................................................................................................................5
Research aim:..........................................................................................................................................5
Research objective...................................................................................................................................5
Research question:...................................................................................................................................6
Outline of the methodology.....................................................................................................................6
LITERATURE REVIEW.........................................................................................................................7
‘Models’ of agricultural commercialization.............................................................................................7
key factors influencing social inequality and dispossession caused by agricultural commercialization...7
The outcomes of agricultural commercialization at Al Jouf in terms of labour, livelihood, land and
economic linkage.....................................................................................................................................8
RESEARCH METHODOLOGY...........................................................................................................10
REFERENCES........................................................................................................................................12

INTRODUCTION
Overview of the topic
Commercialisation of agriculture is noted to have a significant historical and current presence in
the Middle East and North African (MENA) region. During recent times, increasing large-scale
investment in commercial agriculture in the context of Olive farming in the Al Jouf region in
Saudi Arabia has drawn increased attention on this agricultural commercialisation being
associated with deals of ‘land grabbing’. Arguably this is a contentious issue involving large-
scale acquisitions of land in this region by national elites, the government, domestic and
transnational companies, causing individuals and local communities to be losing access to land
which they were previously using, which threatens their livelihoods (Byamugisha, 2013).
Through such investments, largescale estates and plantations have been established and
rehabilitated in the Al Jouf region with a focus on olive cultivation; it is noteworthy that for
certain crops like olives, in areas where there is adequate water and climatic conditions favouring
cultivation, as well as extensive land, large-scale agriculture is observed to be effective (Hall,
Scoones and Tsikata, 2017). Notably with Saudi Arabia being heavily reliant on the Al Jouf
region for the production of olives, this region is located in the northern territory of the country
and has olive trees grown on a largescale. This region possesses millions of olive trees, with
projections of the cultivation going up to 20 million trees in the near future (Al Arabiya, 2018).
While this region is famous for its annual olive festival, Al Jouf encompasses 3,000 agricultural
projects and 12,000 olive farms (Rabeh et al, 2017). It is noteworthy that this region also
possesses the world’s largest modern olive farm, Al Jouf Agriculture Development Company as
certified by the Guinness World Records. This olive farm is identified to own a land area of over
60,000 hectares with over 6 million olive trees, and produces around 45,000 tons of olive oil,
thus meeting half the annual consumption of olive oil in Saudi Arabia which is known to exceed
90,000 tons (Al Arabiya, 2018). With changing patterns of food consumption among the Saudi
population, there has been an increase in olive oil consumption in recent years; notably the
annual olive oil consumption growth is estimated to be 25% while production growth of olive oil
is less than 10% (Al Arabiya, 2018). Therefore while the country currently imports a significant
volume of olive oil to meet domestic consumption needs, companies in the Al Jouf region like
the Al Jouf Agriculture Development Company are focusing on expanding their olive cultivation

through the acquisition of more extensive land areas in the region, to support domestic self-
sufficiency in olive oil in future. Arguably, these companies are largely backed by the Ministry
of Environment, Water and Agriculture which stand by the companies in their ventures and
provide support through loans and other necessary facilities enabling them to succeed (Al
Arabiya, 2018). Despite these apparent beneficial economic dynamics associated with
agricultural commercialisation in the context of olive farming in the Al Jouf region, it is arguable
that the social dynamics of such agrarian change too needs to be taken into account as
agricultural commercialisation is commonly linked to social inequality and dispossession of local
communities who previously owned the land.
Problem statement
It is identified that the struggle for resources which is integrated in the process of agrarian
change often brings about social inequalities in terms of gender, class and relations of kinship
(Berry, 1993). Arguably in ventures like the struggle to cultivate more olives using the suitably
rich land and water resources of the Al Jouf region, agrarian social relations in terms of the
limited negotiability as well as resulting deepened inequality and processes of extensive social
exclusion are generally not taken into consideration as critiqued by Peters (2004). In this respect
it is of significance to emphasize that exclusion, social differentiation and inequalities tend to be
some evident outcomes of market liberalization, structural adjustments, commoditization and
globalization.
Rational of the study
Along the same lines, it is noteworthy that land grabbing spurs questions in relation to the degree
of dispossession and, amongst local communities, debates on who has gained due to agrarian
systems undergoing capitalist penetration and who has been adversely affected, the extent of
resulting social differentiation as well as the degree to which agricultural commercialisation is
causing redundancy of local labour or creating jobs (Li, 2011). Therefore while trajectories of
agricultural growth tend to be demonstrated in the varying social relations in the local
communities as elucidated above, this study is conducted with the rationale of identifying such
varying social relations arising from the commercialisation of olive farming in Al Jouf, and how
more inclusive and sustainable pathways of agricultural commercialisation could be developed in
this region of rich olive cultivation.

Significance of the study
Commercialisation of agriculture and agrarian change is identified to bring about significant
changes in social relations in the local communities, and is largely associated with inequality,
dispossession and social exclusion (Berry, 1993). Therefore this study is carried out to
determine who is benefitting and who is losing out from commercialisation of agriculture in
terms of olive farming in Al Jouf, the processes of dispossession and accumulation that are
generated, as well as where livelihoods are potentially secured and for which parties. The study
involves in articulating the relationships between labour, land and capital in the commercial olive
farms at Al Jouf and the surrounding communities in the context of the relevant agricultural
commercialisation models applicable, considering that the concept of capital functions in
differing ways based on the commercialisation model applicable. All this supports in gauging
how people are capable of composing their livelihood with the different processes of agricultural
commercialisation unfolding, along with how these processes are affecting social differentiation.
While thus articulating the significance of this study, it supports in the creation of policy
frameworks promoting more sustainable and inclusive pathways to agricultural
commercialisation.
Research aim:
This study aims at determining the outcomes of agricultural commercialisation and agrarian
change associated with olive farming in the Al Jouf region in terms of labour, livelihood, land
and economic linkage.
Research objective
 To identify the key factors influencing social inequality and dispossession caused by
agricultural commercialization
 To analyse the main models of commercialization of agriculture present in olive farming
at Al Jouf?
 To determine the outcomes of agricultural commercialization at Al Jouf in terms of
labour, livelihood, land and economic linkage
 To recommend routes of developing more inclusive and sustainable pathways of
commercialization of agriculture (olive farming) in Al Jouf, taking into account agrarian
relations.

Research question:
 which are key factors influencing social inequality and dispossession caused by
agricultural commercialization?
 what are the main models of commercialisation of agriculture present in olive farming at
Al Jouf?
 What are the outcomes of agricultural commercialisation at Al Jouf in terms of labour,
livelihood, land and economic linkage?
Outline of the methodology
The research design for this study will be outlined which involves interviews conducted at the Al
Jouf region, the qualitative methodology and approach, sampling techniques as well as analytical
methods employed.

LITERATURE REVIEW
‘Models’ of agricultural commercialization
Commercialization of agriculture is identified to incorporate a diversity of institutional
arrangements; these are associated with a variety of implications for agrarian structures, land
concentration and land tenure, as well as for labour regimes as argued by Yaro, Kofi and
Torvikey (2017xxxx). While there are three broad models of agricultural commercialisation, the
present study determines which of these respective models of commercial agriculture are found
in olive farming at Al Jouf, while assessing how each of these identified models are performing
against the four common areas of outcomes emphasized in literature to influence sustainable and
inclusive agricultural commercialization - labour, livelihood, land and economic linkage.
Plantations are having a long history in the middle eastern and African region, starting with
colonial concession areas, and have been widely held as effective in providing substantial scales
of wage employment, often combining permanent and casual labour. At the same time, because
of the scale of land required for accumulation of capital in such farming systems,
plantations/estates frequently displace local people. Arguably when effectively designed and
well managed, out grower schemes can address numerous sustainable agriculture objectives.
They can facilitate greater private sector investment in developing countries, improve sustainable
sourcing practices by bringing smallholder farmers into mutually beneficial partnerships with
large buyers, and increase smallholder farmer incomes by improving yields and quality through
training, access to credit and markets. Out-grower scheme is defined as a contractual partnership
between growers or landholders and a company for the production of commercial forest
products. Out-grower schemes or partnerships vary considerably in the extent to which inputs,
costs, risks and benefits are shared between growers/landholders and Plantations International.
Partnerships may be short or long-term (eg. 1-15 years), and may offer growers only financial
benefits or a wider range of benefits. Also, growers may act individually or as a group in
partnership with a company, and use private or communal land.

key factors influencing social inequality and dispossession caused by agricultural
commercialization
Within this definition out-grower schemes may include joint ventures and contract tree farming.
Differences between these arrangements are largely in responsibility for silviculture, resource
ownership and control, and the financial remuneration to growers. In conventional out-grower
schemes the landholder is contractually responsible for the silviculture and the supply of the
product, usually agarwood, to the company at harvest. Under the contract, the company may
provide inputs or technical support to the grower, and guarantees a market for the product.
Employing organizational models that allow for high levels of farmer-company interaction to
build trust and effectively transfer knowledge and skills, securing buy-in and support from local
authorities and community leaders, providing training on good agricultural practices, directly or
via third parties, typically leveraging lead farmer models. Plantations/estates may
involve outright takeover of land and related resources, displacing other land users and
uses, and there is some evidence that they are typically poorly integrated into their surrounding
society and economy. One of the core reasons cited as to why plantations/
estates have relatively limited interaction with the local economy is that their value
chains are often embedded in global markets.
The outcomes of agricultural commercialization at Al Jouf in terms of labour, livelihood,
land and economic linkage
In addition to these widespread best practices, it is also found that companies operating large
schemes continue to explore new techniques to mitigate risks. Some of these include developing
robust systems for collecting, tracking and analyzing program and farmer data and using this
data to inform resource deployment and continuous improvement of the scheme; and employing
a merit-based process for farmer selection and consulting community leaders and authorities. It
also includes creating farmer loyalty programs, including incrementally raising input package
sizes or providing a bonus for farmers who fully repay their loans and deliver according to pre-
agreed volumes, quality and timelines; leveraging mobile solutions, including mobile payments
and tracking crop deliveries; and supplementing traditional agronomic training with training in
personal finance and business management, as well as climate-smart agriculture. Further

techniques involve employing holistic outgrower finance, including incorporating savings
programs, as well as weather, life or health insurance into input packages; and intercropping
staple crops to improve soil quality, farmer incomes and food security There are important
variations, including whether or not there is on-farm processing, and production for domestic or
export markets (Kydd and Christiansen 1982; Loewenson 1992). Arguably a continued debate
prevails in relation to , whether estates/plantations result in mass dispossession and act as
isolated enclaves with limited spillover benefits or, by contrast, whether they are the source of
stable, relatively well-paid employment, including for women.
Ferguson (2006) has articulated a critique of plantations as constituting ‘enclave economies’ that
source inputs (including migrant labour) from far afield and sell into foreign or national (rather
than local) markets. This suggests that, while plantations/estates may achieve improved levels of
productivity and output, weak forward and backward linkages into the local economy undermine
their ability to contribute to dynamic rural economies and improved and diversified livelihoods
in the surrounding area. We define plantations/estates as large, self-contained agribusiness farms
that are vertically integrated into value chains. While they are often associated with one major
crop, this is not always the case. Moreover, utilizing formal contracts involves the following
elements: clear explanation of quality specifications, expected volume based on the size of the
farm and input package, minimum guaranteed price or an indicative price based on quality
grades; and listing of pre-financed inputs with transparent pricing and payment deducted from
crop purchase.

RESEARCH METHODOLOGY
It is defined as the methodology which helps in identifying, analyzing and interpreting the
data for the study in systematic manner. Using the research methodology investigator attain the
aim and objective in right manner. The readers of the research are also interested in knowing the
method and tool used in the present investigation. As it helps them to determine the overall
validity and reliability of the investigation. It is divided into various stages that are discussed
below
Research philosophy: It is the set of belief about the phenomenon to gather and analyse
information that helps in understanding the social world. There are two research philosophies
that are positivism and interpretivism. In the present investigation, investigator has selected
interpretivism philosophy. This is because it helps in gathering subject data to understand the
social world in deeper manner (Tecau and et. al., 2020). As data is in the form of statement
which on the other side also helps in analysing the pattern of the variable in the community in-
depth way. With the subject data investigator develops the nature and scope of the study in right
way so that overall validity can be maintained.
Research approach: It is that layer of the research methodology which test the
hypothesis and theories in the study. These are being tested in order to address the research
problem in accurate way. Deductive and inductive are the two research approaches. In the
current research, investigator has chosen inductive research approach. The reason is that it will
formulate new themes as per the gathered data. Using this research problem is addressed in
detailed manner. Forming of theme take place for the analysed information which show the true
picture of the study in vast manner.
Research strategy: This is one of the vital layer of the research framework. This is
because research strategy is a step by step plan and procedure that accumulate data for the study.
It shows the right direction through which data about the thought and idea of the investigator can
be maintained. There are various research strategy that are survey, case study, experimental
research and many more. As per the current investigation, investigator has opted survey research
strategy. This is because it helps in collecting accurate data in lesser time and cost. In survey the
data collection instrument is interview (Kennedy, 2019). With the help of interview research can
also interact with the participants and can make an in depth interaction with them.

Research choice: It is very crucial for the investigator to select the right method for
carrying the investigation. The main reason is that it helps in attaining the aim and objective in
right way. There are three types of research method which are qualitative, quantitative and mixed
research method. In the current research study, investigator has chosen qualitative research
method. The main reason is that it helps in gathering and analysing non numerical data. Non
numerical data is in the form of text, statement, words and many more. Using this method an in-
depth investigation is made on the selected topic. Data is in the form of text which give wider
picture for the study. Qualitative data analysis is also effective as it also develops detailed
knowledge on the topic.
Time horizon: Time framework is that layer which determine the point of time for
accumulating data for the study. Using this investigator get to know the time in which data for
the study to be accumulate so that aim and objective can be attained significantly. Cross
sectional and longitudinal are the two-time framework that helps in identifying the investing time
of the research. As per the current research subject, investigator has chosen cross sectional time
horizon. The main purpose is that it helps in completing and gathering data in shorter time
duration (Carminati, 2018). This framework also helps to observe multiple variable for the study
which assist in completing the research in valid manner.
Data collection: Data collection is the process of gathering and analysing data for the
study. Collecting data for the study is important as it helps to achieve aim and objective in right
way. There are two data collection source that are primary and secondary. In the existing
investigation, investigator has selected primary source. This is because using this first hand data
is gathered directly from the respondent. Investigator themselves collect the data from the
participant in order to acquire real time data (Soilemezi and Linceviciute, 2018). Data is used for
the first time in primary research that also helps in showing the true picture as per the scenario.
There are various primary data collection source such as questionnaire, interview, observation
and etc. as per the present investigation, investigator has opted for interview. This is because it
helps in gathering qualitative data in deeper way.
Data analysis: Data analysis is the procedure to inspect and analysed the data for the
study. There are various data analysis tool such as frequency distribution method, thematic
analysis, content analysis, correlation analysis and many more. According to the present

research, thematic data analysis is being chosen. The reason is that it will evaluate non numerical
data with more flexibility as well as data is also represented using themes that covers all the
objective of the investigation. Thematic analysis is also most powerful data analysis tool for
qualitative research as it inspects the wider data in detailed manner so that only useful
information can be obtained.
Sampling: Sampling is the method to select participants from the study. It is important
to select participant as with the help of them right data for the research subject is obtained.
Probability and non-probability are the two sampling method. As per the investigation,
investigator has opted for non-probability sampling method. Non probability is the sampling
method in which applicants are selected on biases manner. The reason is that it takes out sample
as per their convenience. The sample size for the present research study is 5 respondents from Al
Jouf region in Saudi Arabia (Rutberg and Bouikidis, 2018).

REFERENCES
Online
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Guinness-Records-for-largest-in-the-world [Accessed: 15 December 2020]
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