Olive Business Newsletter December 2006

It is the end of another interesting year for the international olive industry.  For Australia it has been significant in that for the first time substantial quantities of olive oil have been produced and many local brands are now on the grocery shelves.

The next year will be challenging with the worst drought on record affecting production in the eastern States of Australia and prices affected by Spain coming back close to normal production. The expected decrease in the price of olive oils will hopefully see the end of consumer resistance to the high prices and consumption will start to increase again

Wherever you are involved in the industry, we at Olive Business hope you have an enjoyable festive season and have a successful 2007.

Thank you for your support.

 

Olive wrap up around the world

Simon Field has just returned from an extensive trip through some of the world’s leading olive producing and consuming countries. Here are some observations relevant to the Australian industry.

Spain

After 30% of normal production in Spain in 2005, it is expected to increase to 65-70% in the current 2006 harvest. This will have a significant impact on international prices which are expected to continue to fall until January 2007 and thereafter stabilise at around the level 2 years ago before the upturn.

Rainfall has been good so the growth and production for the 2007/2008 season can be expected to be good.

Spain is aggressively seeking direct markets thereby circumventing Italy, which has a history of importing from Spain and re-exporting. There is evidence of significant expansion of groves within Anadalucia and in Spanish interests in groves in North Africa.

Greece

The industry is regionalised and not as aggressive in exporting as Spain and Italy. However, there has been substantial upgrading of processing facilities to comply with international HACCP requirements. This will make the industry more efficient and competitive in exporting.

Early frosts have affected the current harvest in Kalamata.

South Africa - Western Cape Olive Industry

South Africa’s production of around million trees shows some limited expansion but is unlikely to become a significant producer and exporter by world standards. There is a significant increase in the number of South African extra virgin olive oil brands on local supermarket and delicatessen shelves. Morgenster was the only South African brand seen in the UK

United Kingdom (UK)

There seem to be were fewer Australian brands on supermarket shelves than at the same time last year. There is more apparent interest in growing olives, but only on a very small scale 

USA

Australian oils are evident as homebrands in a number of national supermarket chains at very competitive prices for good quality extra virgin olive oil.

Limited Australian brands are seen in upmarket grocers. On the downside there was an Australian brand harvested in 2002 seen on the shelf in Washington D.C. Imported well known Italian oils are priced very high – up to US$60-70/litre

There is a limited number of Californian oil labels on the shelves nationally at high prices. Some bigger producers are marketing aggressively through boutique stores in high traffic areas such as the San Francisco Ferry Terminal.

Growers are starting to have problems with olive fly.

General

Rancid olive oils are evident in all the countries visited and are from all producing countries. The problem of consumers being used to the taste of rancid oil, and thinking that is the taste of extra virgin olive oil, is universal.

Some Association Organoleptic Panels Lose IOOC Accreditation

Australia

The International Olive Oil Council (IOOC) has released the list of accredited organoleptic panels qualified to classify olive oil for the year 2006/2007. A notable absence is the Australian Olive Association Panel which has been leading the development of the taste element of Australian olive oils for almost a decade. The panel has had a major impact on the organoleptic development of Australian olive oils through the participation of its members in most of the recognised national olive oil competitions.

A new panel, administered by Peter Olsen of the New South Wales Department of Primary Industries in Wagga Wagga, has been added to the list for the first time. The Department laboratories in Wagga Wagga have also been accredited for chemical analysis of olive oils.

New Zealand and USA

In New Zealand the panel supervised by Margaret Edwards for Olives New Zealand has been accredited while the United States will be without a panel for another year, the California Olive Oil Council panel not achieving recognition. 

To be accredited or retain accreditation, panels must pass a series of taste tests with samples distributed through the year by the IOOC.

For the full list of panels Click Here.
 

New Handbook on How to Market Olive Products

A new handbook on how to market olive products has been published by Salsi Pty Ltd. The tips and guidelines in the handbook are relevant to all olive product selling campaigns in any country. With globalisation, market structures are similar wherever one travels to find new outlets for olive brands.

The latest in the series of practical pocket-sized olive handbooks covers the principles of marketing and helps develop a marketing plan. The characteristics of each of the market segments, from supermarkets to deli’s and farm stores, are covered and there are many useful tips on how to make your product the one that sells. Guidelines on retail price points and accessing import and international prices are provided as essential considerations when developing and marketing olive products.

The handbook also contains selling points that will help you promote the health benefits of olive oil, such as prevention of heart disease and breast cancer. And counters some of the misinformation often heard on the use of olive oil in frying.

Other handbooks published by Salsi Pty Ltd are

• ‘The Olive Handbook’ for growers,

• ‘The Table Olive Handbook’ for table olive processors,

• ‘The Extra Virgin Olive Oil Taster’s Companion’ for olive oil tasters and marketers,

• ‘The Olive Oil Maker’s Handbook’ for making olive oil at home and commercial processing.

The Handbooks are sold worldwide from the website www.olivebusiness.com/shop and through specialty olive retail outlets. RRP is AU$19.95 (GST included) plus postage and handling. 
 

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