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Australian and New Zealand olive growers are having a breather after harvesting the 2005 olive crop. The next step is to sell the olive oil and table olives in an increasingly competitive local market.

The good news is that there are worldwide shortages of both commodities which will ease the situation – a little!

Reports vary on the success of the season, as one would expect. Generally the crop was up substantially on last year and we can expect a three or four-fold increase in the flow of locally produced extra virgin olive oil. More locally produced table olives will also roll into the market.

This is good news for the industry and consumers.

Anecdotally, there are some interesting challenges and results arising from the harvest: 

• Harvesting in the wet is proving difficult, if not impossible, for the large over-the-row harvesters. In most parts of Australia we have had a succession of dry years since the major olive plantings. There is work to be done on wet weather harvesting before next season.
• A shortage of mechanical harvesters was also apparent.
• Free Fatty Acid levels, historically very low, seem to be generally higher this season. Perhaps a result of harvesting more mature fruit by choice or circumstance.
• Many producers harvested later to increase yields and produce more delicate, less peppery oils.
• The bulk oil price is continuing its downward trend – large volumes of new season oil are available at $5 per litre and the more complex, scarcer blending oils are fetching up to $7.00 per litre f.o.b.
• The more efficient producers and those that can harvest early are working their advantage by getting new season oil into the marketplace by the end of April. This is putting pressure on the previous season oils still on the shelves.

• The swing to table olive production is continuing with an increasing number of producers doing the simple calculations that predict a greater return from this product.
• Hand-harvesting costs are coming down with the use of trained contract teams.
• The prices of locally produced bulk table olives are consequently coming down – to about $6.00 per kg for black and $7.00 per kg for green f.o.b. 

Financial Year (9 months)	2003/04	2004/05
Total Tonnes	19,750	21,633
Total Value $m	87	101
% Virgin	29	30
$/litre Virgin	4.69	5.07
$/litre Non-virgin	4.29	4.54
$/litre Other Oils	1.93	2.72
$/litre All Oils	4.39	4.70

The time is right to stand beside the major importers at Fine Food in Sydney and promote our quality local products.