Olive Farming Profit Per Acre

Olive Farming 

Olive farming profit per acre varies notably depending on the planting system, with initial investments estimated at NRs. 111,000 for traditional, NRs. 155,950 for intensive, and NRs. 537,600 for high-density planting. Among these, high-density planting yields the highest early returns, generating over NRs. 1.2 million by years 7–10 and peaking at around NRs. 3.2 million annually during years 15–20.

Although traditional and intensive systems involve lower initial costs, they require more time to achieve high returns. The break-even point for olive farming profit per acre typically occurs around years 6–7 for traditional, 5–6 for intensive, and 4–5 for high-density systems due to their faster productivity.

Olive Farming Profit Per Acre
Image: Vecteezy.com

Annual maintenance costs, ranging from NRs. 50,000 to 100,000 per acre must be subtracted from gross income to determine net profit. Overall, olive farming profit per acre is maximized in high-density systems, making them the most lucrative choice for commercial growers with adequate capital and irrigation facilities

Land Preparation

Land preparation begins with clearing the site of existing vegetation, rocks, and debris, ensuring deep-rooted perennial weeds are completely eradicated. Deep plowing or tilling is then essential, aimed at a depth of 60-100 cm, if possible, to break up hardpans, significantly improve soil aeration and drainage, and facilitate deep root penetration.

Following this, leveling the land ensures uniform water distribution, particularly under irrigation, and facilitates future mechanized operations, although gentle natural slopes are ideal for promoting drainage. Because olives are highly susceptible to waterlogging, ensuring excellent internal and surface drainage is paramount; this may require installing drainage channels on flat land with heavy soil. Finally, subsoiling is performed if needed to break up compacted layers existing below the depth reached by normal plowing, further improving root growth and water infiltration.

Soil Type

Olive trees thrive best in deep, well-drained, fertile loamy or sandy loam soils; however, they are remarkably adaptable and tolerate a wide range of marginal conditions, including rocky, shallow, and low-fertility soils better than many other fruit trees, and are particularly known for thriving on calcareous soils (high in lime).

Despite this tolerance, excellent drainage is paramount, making heavy clay soils prone to waterlogging unsuitable without significant amendment and drainage systems. Olives prefer neutral to slightly alkaline soils (pH 6.5 – 8.5) and tolerate calcareous conditions very well, while acidic soils (pH < 6.0) may require liming. They exhibit moderate tolerance to salinity, though high salinity levels significantly reduce yield and overall tree health.

Climatic Requirements

FactorRequirement / Tolerance
Overall ClimateSubtropical to warm temperate
Temperature• Optimal Range: 15-30°C
• Cold Tolerance: Mature trees tolerate brief frosts (-7°C to -10°C); prolonged/severe frost kills trees. Young trees are sensitive.
• Winter Chill: 200-300 hours below 7°C required for flowering.
• Heat Tolerance: Tolerates up to 40°C+ with adequate water; extreme heat during flowering causes flower drop.
Rainfall• Ideal Climate: Mediterranean (mild, wet winters; hot, dry summers)
• Adequate Rainfall: 500-700 mm/year for dryland farming
• Supplemental Irrigation: Crucial for consistent yields, especially in low-rainfall areas or during key stages (flowering, fruit set, pit hardening).
SunlightRequires full sun (minimum 6-8 hours daily) for optimal growth, flowering & oil accumulation.
Wind• Tolerates moderate winds
• Strong Winds: Cause tree damage, fruit drop & increased water loss
• Mitigation: Windbreaks needed in exposed sites.

Major Cultivars

The selection of major olive cultivars depends on several factors, including their primary use—whether for oil production, table consumption, or dual-purpose. Climate adaptability is crucial, with considerations for frost and heat tolerance as well as chilling requirements. Cultivars also vary in ripening time, ranging from early to late in the season, and in yield performance, with some bearing fruit more consistently than others.

Disease resistance, particularly against Verticillium wilt and Peacock spot, is another important criterion. Additionally, while some cultivars are self-fruitful, most require cross-pollination and generally benefit from the presence of compatible pollinator varieties to ensure better fruit set and higher yields. Some commonly grown olive cultivars are listed in the table below.

TypeCommon Cultivars
Oil CultivarsArbequina, Arbosana, Koroneiki, Picual, Frantoio, Leccino, Coratina, Picholine
Table CultivarsManzanillo, Sevillano, Kalamata, Hojiblanca (dual), Mission (dual), Gordal
Dual-PurposePicholine, Hojiblanca, Mission

 Planting

a). Planting Season
Olive trees are best planted in February or March, which is often late winter or early spring, once the risk of frost has passed. Spring is the ideal time of year to plant in regions with chilly winters. In areas with moderate winters, fall is also a favorable season. Prevent heat stress by growing outside during the sweltering summer months. With adequate water, olive trees grown in containers can be planted at any time of year, and irrigation systems can be installed concurrently with planting.

b) Spacing

Planting SystemSpacingTrees per AcreRequirements
Traditional10m × 10m40
Intensive8m × 8m63
High-Density (HDP)5m × 2m404This system requires the use of dwarfing cultivars along with intensive management practices and consistent irrigation to ensure optimal growth and productivity. HDP has a total life span of 20 years.

c) Pit Preparation

For olive cultivation, pits should be prepared at least 2–3 weeks before planting, with each pit measuring 60cm × 60cm × 60cm. The excavated topsoil should be thoroughly mixed with 10–15 kg of well-rotted farmyard manure (FYM) or compost, 500g of superphosphate, 100g of Muriate of Potash (MOP), and 50g of Trichoderma viride. This enriched mixture is then used to refill the pit, slightly mounded above ground level to account for settling.

d) Planting Method

During olive planting, place the tree—either bare-root or container-grown—centrally in the prepared pit, ensuring that the graft union, if present, remains well above the soil level. Spread the roots naturally, then backfill carefully with the amended soil mixture, gently firming it to eliminate air pockets. Create a small basin around the tree to facilitate watering and water thoroughly immediately after planting. In windy areas, stake young trees to provide additional support.

Intercropping

Intercropping in olive orchards is commonly practiced during the initial non-bearing years (first 3–5 years) to utilize space efficiently and generate additional income, with suitable crops including legumes like beans and peas that fix nitrogen, as well as vegetables or low-growing cover crops.

In mature orchards, intercropping becomes less common due to root competition and potential management challenges, though it may still be possible with carefully managed, very low-growing, shade-tolerant species such as certain herbs or specific cover crops.

It is important to avoid deep-rooted or tall crops that compete significantly for water, nutrients, or sunlight, and to ensure intercrops do not harbor pests or diseases harmful to olives. Proper management of irrigation and fertilization is essential for the success of both the olive trees and the intercrops.

Irrigation

Irrigation is critical during key growth stages—Flowering, Fruit Set, Pit Hardening, and Fruit Enlargement (Summer), as drought stress severely compromises yield and fruit quality. Young trees require frequent watering (e.g., weekly) to establish deep roots, while mature trees benefit from deep, infrequent irrigation tailored to soil, climate, rainfall, and system (commonly drip, micro-sprinklers, or basin irrigation).

Annual water needs range from 500-1000 mm (including rainfall), with Regulated Deficit Irrigation (RDI) often applied post-pit hardening to conserve water without significant yield loss, potentially enhancing oil quality. For oil olives, optimal moisture is essential at fruit-set and oil accumulation; for table olives, critical stages are fruit-set and fruit growth. Water stress during these phases causes poor fruit set, reduced size, and lower oil content.

Fertilizer and Manure

Conducting a soil test is crucial before developing a fertilizer program for olive trees. Based on general recommendations, the following doses are typically applied:

Tree Age/StageNitrogen (N) per tree per yearPhosphorus (P₂O₅) per tree per yearPotassium (K₂O) per tree per yearCalcium (Ca) & Boron (B)Organic Matter per tree per yearKey Application Notes & Timing
Planting Year20-50g50-100g20-50gCa: Incorporate lime/gypsum if soil test indicates low pH/need. B: 0.5-1g (soil)10-15 kg well-rotted manure/compostAt planting, Mix P & organic matter thoroughly into the backfill soil. Apply N/K lightly after establishment (6-8 weeks). Avoid root contact with concentrated fertilizers.
Year 2-3 (Juvenile)50-100g30-70g50-100gB: 1-2g (soil) or foliar spray (0.1-0.2%) in spring if deficiency suspected.10-20 kgSplit Nitrogen into 3 doses (March, July, October). Apply P/K/organics in late autumn/winter.
Year 4-5 (Early Bearing)100-200g40-80g100-200gB: 2-3g (soil) or foliar (0.2%) pre-flowering & fruit set.15-25 kgTiming Critical: Main N split before flowering & post fruit set. K is vital for fruit quality. Organic matter application is crucial for soil health.
Mature (6+ years, Full Bearing)200-400g (Adjust based on soil test report).50-100g (Based on soil test)200-400g (Yield dependent)B: 3-5g (soil) or foliar (0.2-0.3%) pre-flowering & fruit set. Ca: Foliar if deficiency observed (e.g., fruit deformities).15-25 kg (Annually or biennially)Split N: 60% Early Spring (pre-flower), 40% Late Spring/Early Summer (post fruit set). Avoid late N. Apply K in late winter/spring & post-harvest if needed. Apply organics/organic-P-K in late autumn/winter.
Post-Harvest (Mature Trees)0-50g (Only if severe deficiency)0g50-100gB: Optional foliar (0.1-0.2%) if deficiency noted.Apply Organic Matter HereFocus on K & Organics: K aids bud formation & winter hardiness. Primary time for organic matter/compost application. Avoid N to promote hardening off before winter.

Weed Control

Olive Farming Profit Per Acre
Fig: Weed management

Weed control is vital in olive orchards, especially for young trees and in arid areas, to reduce competition for water and nutrients. Methods include using low-growing, non-competitive cover crops (mowed before flowering) to improve soil and fix nitrogen; applying organic mulch (e.g., wood chips, straw) to conserve moisture and suppress weeds; and employing shallow mechanical cultivation (e.g., hoeing, discing), avoiding deep work near trunks. Chemical herbicides (pre/post-emergent) can be used sparingly via spot treatments (e.g., glyphosate), ensuring no contact with tree leaves or bark.

Pest and Disease Management

Common Pests

a) Olive Fruit Fly

The olive fruit fly, a significant pest that tunnels into fruit causing premature drop and reduced oil quality, requires integrated management including orchard sanitation, targeted insecticide applications based on monitoring, bait sprays, biological controls (e.g., parasitoids), removal of infested fruit, and trap monitoring (4–5 traps/acre); this comprehensive approach minimizes damage while preserving crop yield and quality.

b) Olive Moth

Because its larvae attack and damage blossoms, fruits, and leaves at different times of the tree’s life cycle, the olive moth is a serious pest that damages olive trees, lowering fruit quality and productivity. Regular monitoring is necessary for effective management in order to identify infestations early, particularly when the moth is in its active life phases.

The use of biological control techniques, such as promoting parasitoids and natural predators, is essential for keeping pest numbers below economic thresholds. In order to maximize effectiveness and reduce environmental damage, targeted pesticide application may be required for severe infestations. This application should preferably be timed to coincide with the most vulnerable larval stages.

c) Scale Insects

Scale insects weaken olive trees by sucking sap and excreting honeydew, which promotes sooty mold and reduces plant vigor. They are managed through natural enemies like parasitoids, dormant oil sprays, and insecticides when infestations are severe.

d) Aphids and Thrips

Aphids and thrips are sap-sucking pests that damage young shoots, leaves, and flower buds, causing distortion, reduced growth, and potential yield loss in olive trees. They are managed through regular monitoring, encouraging natural predators like ladybugs, and using imidacloprid at 1 ml/liter water when pest levels exceed economic thresholds.

e) Root-knot Nematodes

Root-knot nematodes attack olive tree roots, causing galls or knots that hinder nutrient and water uptake, leading to stunted growth and reduced productivity. Management includes using resistant rootstocks, practicing crop rotation, applying organic amendments, and, in severe cases, using approved nematicides.

Common Diseases

a). Peacock Spot

Peacock Spot is a fungal disease that causes dark leaf spots and defoliation in olive trees, especially under humid conditions. It is managed by applying copper-based fungicides in autumn or winter and pruning trees to improve air circulation.

Olive Farming Profit Per Acre
Fig: Disease management in Olive

b) Verticillium Wilt

Olive trees may suffer from Verticillium wilt, a soil-borne fungal disease that causes branch dieback. Planting resistant cultivars, avoiding contaminated soils, and employing soil solarization to lower pathogen levels are the methods used to manage it

c). Anthracnose

Anthracnose is a fungal disease that causes fruit rot in olive trees, particularly during wet conditions. It is managed through timely copper sprays, fungicide applications, and good orchard sanitation to remove infected fruits.

d) Olive Knot

Olive Knot is a bacterial disease that forms galls on branches, weakening the tree over time. Management involves pruning out infected wood with disinfected tools and applying copper sprays to prevent further infection.

Harvesting

Olive trees typically start bearing fruit 3 to 5 years after planting, depending on the variety, growing conditions, and care. However, significant commercial yields are usually achieved after 7 to 10 years. Harvesting olives requires careful timing, crucial for quality and dependent on the intended use: green table olives are harvested when fruits reach full size but are still green or yellow-green before ripening begins, while black table olives are picked fully ripe and dark purple to black.

For oil production, timing dramatically affects quantity, quality (flavor, aroma, polyphenols), and acidity, with early harvest (green-veraison) yielding less oil but higher polyphenols, bitterness, and pungency; late harvest (fully black) produces more oil but milder flavor, lower polyphenols, and higher acidity risk, making the veraison stage (mix of green and purple) often optimal.

Harvesting methods range from selective and gentle hand harvesting (hand-picking, raking onto nets, small combs), used for premium table olives and high-quality oil, though slow and expensive, to faster mechanical aids like hand-held pneumatic or electric rakes/vibrators used with nets.

For large orchards, trunk shakers clamp onto trunks and vibrate fruit onto catch frames, requiring trained operators and suitable trees to avoid bark damage, while over-the-row harvesters are large self-propelled machines that straddle rows, beating branches and collecting fruit on conveyors for high-density orchards but needing specific cultivars and training systems.

Post-harvest handling must minimize bruising, with fruit transported to processing (mill for oil, brine for table) ideally within 24 hours, especially for oil quality preservation, while avoiding overheating in bins.

Cost of Investment per acre for Olive Farming

S.N.CategoriesTraditionalIntensiveHigh-Density
1Land Preparation (plowing, leveling, pit digging)20,00025,00030,000
2Olive Saplings12,00018,900121,200
3Fertilizers and Manure14,00022,050141,400
4Irrigation20,000 (Basin)30,000 (Basin)150,000 (Drip)
5Labor Costs (Planting, weed management)15,00025,00035,000
6Pest & Disease Control10,00015,00030,000
7Miscellaneous Costs20,00020,00030,000
Total Cost (NRs.)111,000155,950537,600

Annual maintenance cost

The annual maintenance costs for olive farming usually fall between NRs. 50,000 and 100,000 per acre after the second year. This price covers necessary tasks like watering, fertilizer and organic manure application, insect and disease control, pruning, weeding, labor costs, and general orchard maintenance. Tree age, input costs, management techniques, and planting system (conventional, intensive, or high-density) can all affect the precise amount. Long-term production, ideal fruit yield, and healthy tree growth all depend on effective management.

Income from per-acre Olive Farming

YearYield/TreeTraditional Yield (kg/acre)Intensive Yield (kg/acre)High-Density Yield (kg/acre)Market Price (NRs/kg)Income TraditionalIncome IntensiveIncome High-Density
4th Year28012680825020,00031,500202,000
5–6 Years6240378242430072,000113,400727,200
7–10 Years156009453500 (slightly increased after year 7)350210,000330,7501,225,000
11–14 Yr35140022055000400560,000882,0002,000,000
15–20 Yr652600409580004501,170,0001,842,7503,200,000
21–40 Yr75300047250 (decline/yield stop)4501,350,0002,126,250

Note: In high-density planting (HDP), yield slightly increases after the 7th year due to enhanced plant growth and intensified competition among the closely spaced plants.

 

Analysis of Olive Farming Profit Per Acre

Olive farming profit per acre varies significantly based on the planting system, with initial investments of approximately NRs. 111,000 for traditional, NRs. 155,950 for intensive, and NRs. 537,600 for high-density planting.

Among these, high-density planting offers the highest early yield, generating over NRs. 1.2 million by years 7–10 and peaking at around NRs. 3.2 million annually during years 15–20. While traditional and intensive systems have lower initial costs, they take longer to generate high returns. The estimated break-even point is around years 6–7 for traditional, 5–6 for intensive, and 4–5 for high-density planting due to faster early returns.

Annual maintenance costs range from NRs. 50,000 to 100,000 per acre and must be deducted from gross income to determine net profit. Overall, olive farming profit per acre is highest in high-density systems, making them the most profitable and commercially viable option for farmers with sufficient capital and reliable irrigation.

 

Sources

  • University of California Cooperative Extension (UCCE) – Olive Production Manual
  • CABI Publishing. Olives (Crop Production Science in Horticulture).

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top