Briefly:
Olive growers in Australia have suffered from an irregular season due to poor weather and the effects of pests.
This shortage could make the already highly competitive olive oil market even tougher.
What then?
Some olive growers are turning away customers in order to make their supplies last longer.
Australian farmers have had a tough olive season, contributing to tight olive oil markets across the country.
Insects have destroyed some olive groves. In Victoria, severe weather also affected farmers in South Australia and New South Wales.
Since imported olive oil is already available in limited quantities, the poor seasonal results come at a bad time for the industry.
It has been difficult for many growers, said Michael Southan, chief executive of the Australian Olive Association.
“It’s disappointing for a number of farmers – they’ve had a bad year,” he said.
“South Australia had a bad year, the Hunter Valley had a bad year, but other parts of NSW and Victoria did reasonably well.
“It seems like it’s just one of those mixed years.”
Is Australia heading for an olive oil shortage?
Despite the challenges, there should be enough supply to keep the product on supermarket shelves due to reasonable returns from some of the country’s largest producers, Mr Southan said.
“Olive oil will definitely be scarce over the next 12 months,” he added.
“Fortunately for the big producers, there is still a year of production to come.
“But the biggest impact is still the lack of imported olive oil entering the market.”
customer alienation
Some Australian olive oil producers are having to turn away customers due to poor harvests.
Olive groves at Pendleton Olive Farm in South Australia have been affected by poor weather conditions early in the season.
As a result, CEO Nick Whiting said the company would have to turn down any new customers over the next year.
“We actually had to cap our existing customers to make sure we could get supplies until the next harvest,” he said.
“This is probably one of the highest demand times we’ve ever seen, and unfortunately we don’t have enough supply to meet these inquiries, which is a bit frustrating.”
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Will olive oil become more expensive?
In recent years, the prices of olive oil in supermarkets have increased significantly, especially imported extra virgin olive oil.
Only time will tell if the tight market will lead to further price increases, Mr. Southan said.
“I don’t think we’ll see prices go higher… but you need a crystal ball to really know that,” he said.
“We want to see the industry produce high quality oil, but also maintain it so that people will buy it.
“We don’t want to drive the product out of the market, and I think a lot of producers realize that.”
Despite high prices and the potential for low supplies, Southan said consumers should not rush to buy olive oil in bulk.
“This is probably the worst thing they could do,” he said.
“What you want to do is make sure your olive oil is fresh, and buy it as you consume it.”
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