Rising international olive oil prices are boosting inquiries for the product’s Australian variant
Olive oil, one of the most widespread edible oils among canola, peanut, sunflower, corn, and others, has recently taken centre stage in Australia’s top products with the potential to thrive on the international market. With increased price tags and better-producing techniques behind the produce’s refinement, Australian olive oil is making its way among the top leaders of this kind, namely Greek, Spanish, Italian, and more, all the more since the cost of the former has been gradually exploding.
Producers of this worldwide-spread liquid fat are saying the domestic demand is growing by leaps and bounds as its international prices are registering new all-time highs on the back of worsening growth conditions. Home-grown olive oil from the Oz land is now grabbing a larger market share, according to the Australian Olive Association reps, such as the CEO Michael Southan. Producers across the country report mixed results depending on a plethora of factors, but overall, the prospects are high for this increasingly expanding sector. According to some officials and producers, Australia can enjoy a richer harvest this year and rank higher in the top of international exporters.
So, are the factors contributing to the rising global price of olive oil actually benefiting Oz and the national producers of the good? What about the global Mediterranean health liquid consumption and its trajectory?
Globally, olive oil is an endangered ingredient
There’s been a small reduction in the amount of olive oil sold globally, given the increasingly infertile ground where harvests could be grown. In the last years, the trees with the oldest cultivation history have demonstrated their vulnerability on the back of worsening weather conditions, with hailstorms, floods, and droughts impacting all the elements that would encourage healthy crops.
In 2023, the planet witnessed the highest temperatures and hottest summer to date, where July was the most challenging month ever to endure. The largest olive oil-producing nations have taken the hardest hit, as have consumers and chefs who are perplexed about how they’ll manage their work without the essential ingredient.
The prices have skyrocketed due to the increasingly unfavourable environment where the product can be grown and commercialized, and the product’s value has risen in terms of what customers are investing in.
At the time of writing, the situation is optimistic for Australian olive tree growers, olive oil producers, and all the entities involved in the commercialization process. For they’re seeing a bright future ahead, many traders and aspiring entrepreneurs start to invest in areas they’ve been neglecting so far, like using the can crusher for industrial trash that developed, sustainability-oriented business use today.
Yet, Australia doesn’t resonate with the global decline in olive oil consumption
Consumers have started to show an inclination toward the Australian olive oil some time ago. Still, it’s only in recent years and under the current conditions that the trend has strengthened. According to reps of olive oil-producing companies in the country, their businesses are seeing brighter days compared to bygone days, having their products see more demand from expanding customer bases.
Likewise, many other varieties of olive oil and related products have seen inquiries multiply. Businesses supply increasingly larger shelves in Australian supermarkets and are seeing partnerships with cafes, restaurants, and such establishments multiply and strengthen.
Expectedly, the Australian market isn’t the only one to benefit from the current situation, as overseas markets are already searching for quality products and down to investigate foreign terrain that goes further from their traditional markets. South East Asian businesses are now importing olive oil from Australia, and the bonds seem to solidify.
Once Australia becomes a more significant player on the global market stage, those invested in businesses in and around this area will have plenty of benefits to enjoy.
Australia might stop relying this heavily on olive oil imports
The essentiality of olive oil worldwide is indubitable, but Australia sure makes an unmissable product out of this. Australia, among the largest olive oil importers worldwide and ranking in 7th place in 2021, has soon started to stray further from the top as the national crops have been put in the limelight. Furthermore, more business and employment have naturally arisen in time, as the increasingly expanding sector invites more entrepreneurial spirit in and attracts more capital.
If Hort Innovation research showed that Australia imported between 20K and 36K olive oil in the years before the inception of this decade, statistics have now surprised analysts by taking a rather unforeseen turn. Instead of the 3,2% of global imports crossing and staying within the Australian borders, the country now lets in significantly less of the widespread Mediterranean staple.
The olive oil culture in Australia has come a long way and is now changing
Olive oil is mainly produced from crops in the Mediterranean region like parts of Australia, justifying the unbeatable position of countries like Portugal, Spain, Italy, Greece, and Chile in the top of the largest olive oil exporters. Australia, sharing territories on the Australasian Mediterranean Sea coast, isn’t that well-rooted in the history of exported oil, having started to explore this sector commercially as early as 1800. Olive trees were grown in locations like the settlements on St Helena Island, and the extracted liquid fat from pressing the harvests was barely enough to suffice exports and make commercial supplies.
Australia isn’t primarily known as a nation boasting fertile ground for olive trees to develop and produce colossal harvests. However, as national and foreign capital started to be poured into this niche, the country soon saw imports growing exponentially, hitting a previous amount of 2,304 tons two years ago and accounting for 0,25% of worldwide imports, valuing around A$16.1 million.
Summing up
Olive oil has recently enjoyed a lot of popularity within and outside the Australian borders on the back of soaring produce prices. People who purchase the Oz variant of the good are more than willing to pay a premium for quality, within-reach supply.
Recently, the lower price imports have started to mirror or surpass those of the Australian olive oil, leading to dynamics swaps as more people favour the latter variant. Surprisingly, despite a decline in the global sales of olive oil and with a preponderance to the virgin olive oil range, the national spending on the produce is rising. The global increase has the opposite effect of what many may mistakenly believe. As such, domestic demand is booming as international prices soar, and Australia suffices an increasingly larger demand for olive oil as the foreign supply falls short of expectations.
Daily Bulletin
