**7. Consumption and production**

#### **7.1 Development of a boutique industry**

In the early years of Australian settlement, there was not a strong demand for olive oil. Olives were grown for personal use or for a small boutique industry. The major edible oils used continue to be refined sunflower, cottonseed and canola oil. It was not until the late 20th Century that the olive industry began to grow. Australia had an increasingly cosmopolitan population including a large portion of Greek and Italian migrant workers who increased the demand for olive oil production. Despite this, the industry continued for many years as a boutique industry with small farms of only a few trees in which people produced their own oil or sold small quantities to others. Olive oil was imported from Spain, Greece and Italy for many years and by the 1990s the value of the imported olive oil products was in excess of \$100 million dollars per annum.

### **7.2 Australian consumption**

Outside the Mediterranean region, Australia is currently the largest consumer of olive oil per capita, consuming about 32,000 tonnes of olive oil in 2008. The demand for olive oil continues to grow, creating a good opportunity for the domestic market. The increased demand is highlighted by the increase in total imports of olive products in the last five years (Table 2).

#### **7.3 Australian production**

Australia currently has about 10 million olive trees spread across approximately 30,000 ha. Although the initial plantings of olives in Australia included a large number of cultivars, today about 90 percent of Australian olive oil is produced from 10 major cultivars including Arbequina, Barnea, Coratina, Corregiola, Frantoio, Koroneiki, Leccino, Manzanillo, Pendolino and Picual. These cultivars have been found to be agronomically suitable while at

Cultivation of Olives in Australia 221

replacement with imports of 43,000 tonnes in 2007 being reduced to around 31,000 tonnes

Fig. 3. a. Harvesting at night at Boundary Bend and b. aerial photograph of olive harvesting

Australia imports in excess of 31,000 tonnes of olive oil per annum. Despite that, an increasing percentage of olive oil is being exported. In 2004, 501 tonnes, or 20 per cent of Australian production was exported while in 2009, 6,959 tonnes, or around 46 per cent, was destined for the export market, an average annual increase of 85 per cent. The value of

The top five countries buying Australian extra virgin olive oil have been the United States, England, China, Singapore and Japan. The Australian customers are changing over time, with the United States and Italy now being major destinations of Australian olive oils.

The export figures from Table 2 indicate that there is a demand and an opportunity for Australian olive producers to continue to sell olive oil overseas. Despite that, a significant level of import replacement is a long term goal for the Australian olive industry and is on track to being achieved. The amount of Australian produced olive oil that is consumed domestically is now one quarter of the sum total of olive oil that is imported. The increased

in 2009.

exports in 2009 was \$37.8m (Source ABS).

at Boundary Bend (photo courtesy of Boundary Bend)

**7.4 Australian imports / exports of extra virgin olive oil** 

Exports to China are also increasing albeit from a very low base.

the same time producing a good range of oil types. Barnea, a cultivar from Israel, is a recent addition to the other predominantly European cultivars but is today the most prolific.

Commercial production increased rapidly from the mid 1990s onwards, designed using state of the art equipment and methodologies. From an almost non-existent crop prior to 1990, olive oil production in Australia reached 12,000 tonnes in 2008. Due to the modern technologies used, that production is almost 100% extra virgin olive oil with no facilities or requirements for solvent extraction and only limited refining capacity for the oil. Only rarely do harvest conditions produce poor quality fruit which requires refining. These refined oils would generally be marketed as alternative products. Hence, Australian olive oils in supermarkets are all extra virgin olive oil. Additionally, around 10 per cent of Australian groves have organic certification, representing an increase of 60 per cent since 2006 (Australian Olive Association).

Most of Australia's olives are grown in the east, south and west of the country. Although South Australia was originally the largest producer, with 39% of total production in 2003, Victoria has become the leader with 48% of the production in 2009. New South Wales, Queensland, Western Australia and South Australia share the other half of production. The main harvest time is May to July although Queensland tends to harvest first due to climate, although harvest time vary across the states.

Australia's share of the world's extra virgin olive oil production has grown from only 0.31 percent in 2006, to 3 per cent of the world market with a 2008 harvest of 12,000 tonnes. By 2014, production is expected to reach 25,000 tonnes.


Table 2. Extra virgin olive oil and table olive production, imports and exports (www.australianoliveoil.com)

The majority of olives grown are for oil production. Much of the production is from a few large producers although there are a large number of small producers spread throughout the growing regions of Australia. Despite the rapid increase in production, Australians are continuing to increase their consumption of olive oil and imports have been maintained at around 20-30,000 tonnes per annum. It would seem however, that there is some import

the same time producing a good range of oil types. Barnea, a cultivar from Israel, is a recent addition to the other predominantly European cultivars but is today the most prolific.

Commercial production increased rapidly from the mid 1990s onwards, designed using state of the art equipment and methodologies. From an almost non-existent crop prior to 1990, olive oil production in Australia reached 12,000 tonnes in 2008. Due to the modern technologies used, that production is almost 100% extra virgin olive oil with no facilities or requirements for solvent extraction and only limited refining capacity for the oil. Only rarely do harvest conditions produce poor quality fruit which requires refining. These refined oils would generally be marketed as alternative products. Hence, Australian olive oils in supermarkets are all extra virgin olive oil. Additionally, around 10 per cent of Australian groves have organic certification, representing an increase of 60 per cent since 2006

Most of Australia's olives are grown in the east, south and west of the country. Although South Australia was originally the largest producer, with 39% of total production in 2003, Victoria has become the leader with 48% of the production in 2009. New South Wales, Queensland, Western Australia and South Australia share the other half of production. The main harvest time is May to July although Queensland tends to harvest first due to climate,

Australia's share of the world's extra virgin olive oil production has grown from only 0.31 percent in 2006, to 3 per cent of the world market with a 2008 harvest of 12,000 tonnes. By

**(tonnes)** 

The majority of olives grown are for oil production. Much of the production is from a few large producers although there are a large number of small producers spread throughout the growing regions of Australia. Despite the rapid increase in production, Australians are continuing to increase their consumption of olive oil and imports have been maintained at around 20-30,000 tonnes per annum. It would seem however, that there is some import

2001 500 27,680 385 11,545 74 2002 750 28,987 300 12,618 199 2003 1,500 28,447 278 14,483 138 2004 2,000 2,500 32,657 501 13,711 265 2005 2,700 5,000 29,062 1,652 15,143 215 2006 3,200 8,650 34,511 2,988 15,608 230 2007 2,500 9,250 43,404 2,502 16,364 207 2008 2,200 12,000 23,952 4,169 17,542 239 2009 3,000 15,000 31,169 6,960 16,210 366

**Exports (tonnes)** 

**Imports (tonnes)** 

**Exports (tonnes)** 

 **Production EVOO Table Olives** 

(Australian Olive Association).

**Year Table** 

(www.australianoliveoil.com)

although harvest time vary across the states.

2014, production is expected to reach 25,000 tonnes.

**Olives Olive Oil Imports** 

Table 2. Extra virgin olive oil and table olive production, imports and exports

replacement with imports of 43,000 tonnes in 2007 being reduced to around 31,000 tonnes in 2009.

Fig. 3. a. Harvesting at night at Boundary Bend and b. aerial photograph of olive harvesting at Boundary Bend (photo courtesy of Boundary Bend)
