Labor shortages, climate hiccups, insects and even parrots have impacted smaller growers across Australia. Meanwhile, prices for imported oils rise to unprecedented levels.
Extra virgin olive oil prices in Australia have surged to unprecedented levels recently.
A visit to Melbourne supermarket shelves revealed that medium-quality extra virgin olive oil can now cost more than 25 Australian dollars (€15) per liter.
In recent months, the price of imported extra virgin olive oil has significantly surpassed prices for Australian-made products, reversing a long-standing market trend.
See Also:2024 Harvest UpdatesHowever, there are indications that these rising price trends may soon taper off, including a favorable yield for most Australian olive oil producers in the recent harvest and an anticipated recovery in European olive oil production for the upcoming season.
“The harvest was near what was expected,” Michael Southan, chief executive of the Australian Olives Association (AOA), told Olive Oil Times.
“It was an off-year, so we were expecting yields to be lower, but it was better than the previous off-year in 2022,” Southan explained, referring to the natural alternate bearing cycle of the olive tree.
On and off years
Olive trees have a natural cycle of alternating high and low production years, known as “on-years” and “off-years,” respectively. During an on-year, the olive trees bear a greater quantity of fruit, resulting in increased olive oil production. Conversely, an “off-year” is characterized by a reduced yield of olives due to the stress from the previous “on year.” Olive oil producers often monitor these cycles to anticipate and plan for variations in production.
“In some areas, frosts or hot winds at flowering resulted in little to no fruit set, but luckily, this was not the case for the major olive growing areas,” he added.
Some damage came from the olive lace bug. Though the bug can cause olive trees to lose their leaves, its impact was milder than anticipated.
“It was an issue for some small groves particularly, as this pest has not impacted them in the past,” Southan said. “Still, it is a native insect which has been around for many years. The cooler and wetter preceding summer suited the olive lace bug in increasing its numbers.”
While large olive oil producers may benefit from economies of scale to offset rising production costs, smaller producers often face a different situation.
Natural events were just one of many challenges faced by Australian producers of high-quality olive oil.
“The harvest was smaller than most years. That was due to the drought and the weather hitting the flowering. On top of that, we did a major prune last year,” said Anne Ashbolt, co-owner at Ashbolt Farm, the southern Australian island of Tasmania.
“In Australia, it is always about the labor and the cost of pruning and harvesting,” she added. “Larger groves can use the massive Colossus machines. Smaller groves like ours, pick the olives with handheld rakes.”
Several other producers of high-quality extra virgin olive oil also pointed to the rising production costs as a challenge they have faced this year.
“Post-Covid, the biggest challenge has been staying within budget, particularly with rising labor and consumable costs,” said Stephen and Sui Tham, owners of Cape Shanck Olive Estate.
The farm, located in the southeastern corner of Australia’s mainland in Victoria, also had to deal with severe weather conditions.
“The late spring heavy downpour coincided with the flowering period. This really affected the amount of fruit in the trees,” Tham said. “Following a dry and fairly warm summer, the temperatures plummeted and were accompanied by frequent and occasional heavy rains affecting the ripening of our fruit.”
Interestingly, the harvest started later than usual, beginning in mid-May with the first Leccino trees.
“The quantity harvested was generally lower than previous years, not unexpected given the effects of the spring rains,” Tham said.
These unusual conditions also impacted other vital aspects of extra virgin olive oil production. “In general, the olive oils of our five varieties were milder, unusually so for the Picual and Picholine varieties. It might certainly suit some palates,” Tham said.
In northern Victoria, growers encountered spring freeze episodes that negatively impacted production.
“Our harvest was satisfactory,” said John Symington, owner of Oasis Olives. “We had lost a lot of flowering due to frost last spring, so we had lower than usual expectations, and the harvest came in with a result towards the lower end of the range of expectations.”
“Climate is always a complicating factor as it is different every year. This season is a very benign summer as the fruit ripened, resulting in milder than usual oils,” Symington added. “Climate is beyond our control, but we look to changing the mix of varieties in our best olive oils to make them a little more complex or robust depending on the conditions.”
Symington noted that challenging olive seasons add further complexity to olive oil production.
“Trying to ensure quality always involves some trade-offs. If it is a choice between harvesting early for quality or later for quantity, we are happy to choose quality, but it is not always so clear cut,” he said.
“If we harvest our premium varieties such as Coratina or Picual very early for a particularly good olive oil, by delaying other varieties, we may increase the risk of anthracnose downgrading the olive oil from some susceptible varieties such as Leccino or Barnea,” the producer added.
“It is not logistically possible to harvest everything as quickly as we would like, so we need to make those trade-offs,” Symington explained.
On the opposite side of the country, in Western Australia, farmers encountered highly unusual weather conditions, similar to recent years in southern Europe, with rising temperatures and severe drought.
Ian Wildly, the owner of Sherwood Springs, has been managing around 1,000 olive trees since 1999, when the farm planted Frantoio, Leccino, Pendolino and Minerva olive varieties.
“The most recent harvest in May 2024 was well below expectations,” Wildly said. “Rainfall during the last two winters was well below average, and while the trees are irrigated during summer, lack of soil moisture meant less spring foliage growth. The flowering was light and patchy.”
“We expect hot, dry weather in summer. But 2023/24 was exceptional,” he added. “Zero rainfall from October 2023 until May 2024 and extended days of temperatures above 40 ºC.”
Wildly also pointed out an emerging problem: damage caused by Port Lincoln Ringneck parrots.
“It is native to Australia and inhabits the forests in the southwest, feeding on flowers and fruit of eucalyptus trees,” he said. “Recently, they have discovered that olives are an easy food source. The parrots nip off the fruiting branch as the olives mature, feeding on the fruits and seed on the ground.”
“It is not only the current year crop that is lost but the fruiting branch for the following year,” he added. “Lack of adequate pruning over the years has also contributed. This has been addressed by a concerted effort to pollard one or two scaffold branches on each tree. Early signs are encouraging with strong new growth.”
“The local market is strong, but poor yields generally have increased prices, maybe to the point where some consumers switch to a cheaper alternative, such as canola oil,” Wildly warned.
According to Southan, “the major opportunities with the current prices for extra virgin olive oil are for large agricultural businesses to diversify their operations with large grove plantings, particularly where they have water available for irrigation.”
“Challenges exist for smaller businesses where the economy of scale is not sufficient for them to be as profitable as they would like in producing extra virgin olive oil,” he concluded. “Table olives present a great opportunity for them.”
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