Showing posts with label Production. Show all posts
Showing posts with label Production. Show all posts

Friday, November 8, 2013

One Enterprise Controls Australian Olive Oil Market

In its commentary about the Australian olive oil industry the USITC Report stated ‘the olive-growing industry structure is very concentrated, with an estimated 85 percent of production controlled by about 40 large-scale producers. One company, Boundary Bend Limited, accounts for about half of Australia’s production’.

This prompted Olive Business to explore just how much control of the Australian industry is vested in one enterprise.

According to the Chairman’s Report to the Boundary Bend Limited AGM the company produces 68% of the total olive oil produced in Australia, is the largest exporter at 65% and is the largest marketer of Australian olive oil with control over 80%.

In the two main supermarkets, Woolworths and Coles, through its brands Cobram Estate and Red Island, the company accounts for 80% of retail sales of Australian olive oils. The closest competitor is the supermarket’s own brands at 10% in each case.

In the research funded by industry and the Rural Industries Research and Development Corporation in 2011-2012, employees of Boundary Bend are listed as the research managers for 4 of 9 projects – the only projects vested in a private company.

The commercial and political implications of this dominance are profound for Australian producers. It will be difficult for any other producers to bid effectively for supermarket supply contracts as securing adequate Australian olive oil will be a challenge. Prices paid for domestic oil supplies from smaller producers can be driven down by Boundary Bend as other domestic buyers do not have retail supply contracts.

Given that research will in future be funded by levies on production, the high contribution to the research funds by Boundary Bend will justify greater say in which projects are funded. The same applies to the political agenda as membership subscriptions to the peak representative body, the Australian Olive Association, are also based on production levies.

Tuesday, April 23, 2013

Olive Oil Production Continues Decline Against Other Vegetable Oils

Updated data from the USDA shows that the percentage of olive oil produced continues to decline as a proportion of total vegetable oil worldwide. In six years since 2007 the percentage has dropped from 2.4% to 2.0%.



Friday, September 14, 2012

Spanish Olive Oil Production Down, Prices Up, Consumption Steady

Drought has affected the Spanish olive crop and forecasters estimate a 30-40% reduction in olive oil yield for the coming harvest. However, this drop in production is to some extent counterbalanced by carryover stocks from the previous record harvest.

International Olive Council data shows in 2011/12 production exceeded consumption. The shortfall in the Spanish crop is expected to return the balance between production and consumption.




Olive oil is part of a group of oils used in cooking and salad dressings. According to forecaster Oil World (www.oilworld.biz) production of these oils will fall up to 18% in the next year.

In anticipation of these shortfalls olive oil prices have jumped significantly. According to Oil World, ‘Domestic prices in Spain for extra-virgin olive oil rose 40 percent from June to about 2,400 euros  a ton in September last week, and could surpass the previous March 2008 high of 2,633 euros to climb to at least 2,800 to 3,000 euros a ton’.

Italy’s olive-oil production, the world’s second-largest, is seen climbing to 540,000 tons from 518,000 tons, while output in Greece may advance to 355,000 tons from 335,000 tons’.

World consumption of olive oil is forecast to stagnate in 2012-13 after climbing for six consecutive years.  “It can be expected that consumption of olive oil will be affected by the prospective high prices and the widening of the price premiums relative to sunflower oil and other vegetable oils,” according to Oil World. (Source Bloomberg and Oil World)

Monday, August 6, 2012

Olive Oil Production Exceeds Consumption


The depressed state of the world trade in olive oil can be partially explained by the simple dynamics of supply and demand. According to the statistics published by the International Olive Council, supply of extra virgin olive oil exceeds demand. This has led to low prices and storage of olive oil in Spain in an attempt reverse the supply/demand situation. However, the stored extra virgin olive oil will deteriorate and its release into the market will increase the availability of lower grade olive oil selling at lower prices and competing with extra virgin olive oil.

Thursday, April 12, 2012

Spanish olive oil production at record levels as prices hit record lows

The Spanish Olive Oil Agency reports that Spanish olive oil production during 2011/2012 has all previous levels and is 185,000 tonnes above the level of the previous year. Spain produces approximately 50% of the world’s olive oil.

Prices for extra virgin olive oil are down 13% in Spain (€1.75/kg) and 28% in Italy (€2.35/kg).
(Source IOC)