Chapter Two: Literature
Review
To ensure that I have a comprehensive understanding of the
benefits and obstacles related to marketing Argon Oil, it is important for me
to review literature related to the product, challenges of marketing and
distribution, and the best practices for managing such a business. What
follows is a review of the academic and professional literature related to this
topic.
Introduction of Argan
Oil
In their research, Guillaume and Charrouf(2011 discuss the unique
features of the Argan tree. It is «a slow growing tree exclusively
endemic to the barren lands of southwest Morocco. Traditionally, Amazigh, women
native to the region, used the kernels of Argan fruit stones as a source of
edible oil. Moreover, they add«Traditionally, Argan oil was used
extensively in Morocco as a topical oil to treat various ailments, such as dry
skin, acne, psoriasis, eczema, wrinkles, joint pain, and skin inflammation. It
is also used to prevent hair loss and dry hair».
Glaser discusses what he describes as «an emerging gold
rush» in his 2010 paper.
Said, in this analyst papers, «For a long time Argan oil has
been known as being very valuable; it is a traditional beauty product and a
healthy edible oil. For these reasons and its scarcity, the bar for its value
is set very high. The trees which produce the fruit and the seeds, from which
this rare oil is produced, grow only in Morocco, on the far north-west of the
continent of Africa. Drop by drop this oil is emerging as a food delicacy and
as an anti-aging skin product. It is found in specialty shops and in both urban
and rural markets in Europe that sell this exotic rarity, which only a few
people know about. In addition, there are several Internet websites whose
providers are specialists or claim to be specialists in Argan products, which
they sell on the web. Nevertheless, Argan oil has been stated to be «the
world's most expensive vegetable oil» (Charrouf and Guillaume 2008, pg.
632)
Production of Argan Oil
It has been a lot of academic works, studies and researches about
the Argan oil and its production. One of the literature review that I found
very important and related to this feasibility study, is the Issue Paper series
«People, Food and Biodiversity»by Nill and Worner. In this
issue paper the writers discuss the history of Argan tree in Morocco, and about
the production of the oil «It is important to distinguish between two
value chains on the basis of major differences in the type of oil extraction
involved. One is the manual pressing chain, the other the mechanical pressing
chain. The manual process, which yields less product, is used in rural areas
where the nuts are collected, while the machine-aided process is used in urban
areas».
Hand-pressed Argan Oil
The first processing step is to remove the soft pulp, and then to
crack the nut in such a way that the seeds (kernels) it contains suffer as
little damage as possible. This is important in order to achieve a better price
on the market.To improve the aroma, the kernels are then gently roasted and
finally ground in a stone rotary quern. The resulting oily paste is constantly
kneaded and lukewarm water added in order to drive out the oil.The remaining
fruit pulp and oilcake are valued as high-grade livestock fodder; the nutshells
are used as firing material to roast the kernels.The raw oil is filtered and
filled into bottles. Some of this is used by the families themselves, but most
of it issold on local markets or directly to urban consumers and small traders
at prices between three and eight euros per liter.The small traders, in turn,
market the product as edible or cosmetic oil or themselves process it to make
natural medicines. Urban customers as well as tourists are key customers of the
traders, paying 50 € and more per liter of oil. (Nill & Worner,
2007)
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