Olive industry 'buzzing' as diets fuel demand, farmers diversify

Australia's olive industry is thriving, with third-generation producer Leon Bettio describing it as the most dynamic period he has witnessed. Consumer demand for olive oil has surged to unprecedented levels, coinciding with a crisis in the wine grape growing sector. This has prompted many grape farmers to consider olives as a viable diversification strategy.

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I've never seen such buzz and enthusiasm within the industry. There's a lot of grape growers asking, 'How do I diversify?'

"I've never seen such buzz and enthusiasm within the industry," Mr Bettio stated. "There's a lot of grape growers asking, 'How do I diversify?'" This heightened interest comes at a time when Australia imports roughly half of the olive oil it consumes, primarily from Mediterranean countries. The reliance on imports was starkly highlighted during the 2022 global shortage, which saw prices jump over 70 percent.

Michael Southan, chief executive of the Australian Olive Association, noted that while prices decreased when global supply normalized, they did not return to previous lows. He added that growers are optimistic following this season's harvest. "When supply came back to normal, prices went down, but they didn't go back to the level they were."

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Prices a few years ago were pushed up when we had a drought in the northern hemisphere. When supply came back to normal, prices went down, but they didn't go back to the level they were.

Michael Esposito, who manages a family business on Kangaroo Island and provides harvesting services, emphasized the growing popularity of the "Mediterranean diet" as a key driver for extra virgin olive oil demand. "Australia consumes approximately 40 million litres of extra virgin olive oil," Mr Esposito said. "There is a net deficit which we import to satisfy the current demand, which is growing."

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Australia consumes approximately 40 million litres of extra virgin olive oil. There is a net deficit which we import to satisfy the current demand, which is growing.

Despite recent improvements in harvest yields after years of drought, some growers reported lower oil production and are utilizing stock from the previous season. However, strong prices and sustained domestic demand position the industry for growth. Mr Southan believes significant expansion is possible, contingent on access to water for irrigation. "If you have water for irrigation, olives are a very, very good option," he said. "We have tremendous potential to absorb a lot more locally produced product."

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If you have water for irrigation, olives are a very, very good option. We have tremendous potential to absorb a lot more locally produced product.