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Baza danych projektów PROW

Construction of New Mill Installations


This project focused on improved capacity of the olive oil production plant to improve organic production, increase value added and the quality of olive oil produced in the area, enhanced food safety, diversification of products and market expansion.



Prior to the investment, two mills carried out the functions of reception, extraction, storage and sale of olive oil obtained from the production of olives of associated farmers. The investment merges these functions under one single a new mill based on the existing property of the beneficiary company. The idea came from the need to minimise costs by reducing transportation costs and extracting the oil near to the prime materials. New technology also increases the competitiveness of the product.


The overall objective was to achieve maximum performance of the prime material (olives) by obtaining high quality olive oil that could subsequently be sold to the national market through different distribution centres. Two existing buildings were also merged into a single mill for the reception, collection, storage and sale of olive oil. The olive oil is obtained from the processing of olives produced by associated farmers.

Main activities

The new mill incorporates reception of raw material (olives) from the field, their cleaning, washing and weighing, grinding, extraction of olive oil through centrifugation, packaging and marketing. The investment also includes environmental considerations by including waste treatment of the residuals left from the cleaning process of olives, while the seeds left from the separation of olive pulp will be used as an energy source for heating purposes on the farm.

Results & Benefits

Improved capacity of the olive oil production plant and improved performance of organic production. As a result, there is increased value added and an improved quality of olive oil produced in the area, cost efficient production, enhanced food safety, diversification of final products and market expansion (with most of the oil sold to the cooperative and regionally, but also nationally and internationally.)

Lessons learnt

• Making use of the competitive advantages of the area, namely the production of good quality olives that can subsequently be processed to produce virgin olive oil of high standards. This safeguards the success of the investment. • Productive investments increase the value added of existing products through better technologies and effective processes. • Cost reduction should come with quality improvements in order to increase competitiveness.

Project location and other information

Castilla-La-Mancha / Albaladejo, Ciudad Real


Castilla la Mancha

RDP Territory


Total project cost (€)

5 679 403

EAFRD contribution (€)

1 203 134

National contribution (€)

676 764

Private contribution (€)

3 799 505

Contact name

S.C.C.M. Unión Santiago y San Miguel


+34 926 387352

Languages for contact


At a glance



Final beneficiary type

Individual farmers, Producer groups, Other

Budget range

> €500 000

Start date:


End Date:


Theme / Measure:

• Competitiveness of Agriculture & Forestry
• Restructuring, developing physical potential, and promoting innovation
• 123. Adding value to agricultural and forestry products


Olives, Quality control, Competitiveness , Cooperation, Modernisation

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