Lyla Lindsey
Australia's olive oil industry is relatively small, producing only 0.5-0.6% of the world's olive oil. However, Australian olive oils have gained prestige and recognition for their quality, with Australian oils ranking 10th out of 28 countries in the 2022 New York World Olive Oil Competition. Olives are mainly grown in Victoria, South Australia, and Western Australia, with the harvest season falling between April and August in the Southern Hemisphere. Australian olive oil production has experienced fluctuations, with a record high of 4,000 tons exported in 2020/21, followed by a decline in the subsequent years. The industry faces challenges such as adverse weather conditions and supply and demand issues, impacting production and prices. Despite these obstacles, some producers remain optimistic about the upcoming harvests.
| Characteristics | Values |
|---|---|
| Australian olive oil production in 2019 | 19,736 tonne (21.5 million litres) from 118,750 fresh tonne |
| Australian olive oil production in 2018 | 9,390 tonne (10.3 million litres of oil from 52,165 fresh tonne) |
| Percentage of Australian olive oil production in global production in 2018/19 | 0.6% |
| Australian consumption of EVOO in 2017 | 63% of olive oil sales |
| Australian consumption of EVOO in 2019 | 65% of olive oil sales |
| Australian apparent consumption of olive oil in 2018/19 | 50,707 tonne or 2.1 kg/person |
| Percentage of imported olive oil in Australian consumption in 2018/19 | 60% |
| Australian olive oil exports in 2018-2019 | 2,304 tonne, worth A$16.1 million |
| Australian olive oil exports in 2022/23 | 2,000 tons, a second consecutive decline from the country's record of 4,000 tons in 2020/21 |
| Australia's main olive-growing regions | Victoria, South Australia, and Western Australia |
| Australia's rank in the 2022 New York World Olive Oil Competition | 10 out of 28 countries |
| Percentage of global olive oil production by Australia | 0.5% |
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What You'll Learn
Australian olive oil exports
Australia exported 2,304 tonnes of olive oil in the 2018-2019 reporting period, valued at A$16.1 million. This was a challenging period for Australian table olive producers, as supermarket shelves were dominated by cheap imported products. However, the depreciation of the Australian dollar against the euro made imports more expensive and exports more competitive.
In the period from February 2023 to January 2024, Australia exported 195 shipments of olive oil to over 21 countries worldwide, with the top destinations being the United States, Vietnam, and China. This marked a growth rate of 3% compared to the previous year. The largest producer of olive oil in Australia has expressed delight at the support it has received from Australian consumers as international olive oil prices have risen. This has resulted in a slight decrease in overall consumption, but Australians are spending more on olive oil, benefiting the local industry.
Olive oil exports from Australia are expected to continue growing, with Australian products competing based on their high quality. Australian olive oil is sought after in both domestic and international markets, with consumers recognising the superior quality of the product. The lower Australian dollar also makes exports more competitive.
The Australian olive oil industry is relatively small, accounting for only 0.6% of global production in 2018-2019. However, it is optimistic about its future, as consumers increasingly value the origin and quality of extra-virgin olive oil. The industry is focused on producing high-quality products to meet the demands of discerning customers.
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Australian olive oil consumption
Australia's olive oil consumption is high, with an apparent consumption of 50,707 tonnes or 2.1 kg per person in 2018/19. This is a combination of domestic production and imports, minus exports. Imports make up around 60% of Australian consumption, with imports in 2018/19 totalling 33,274 tonnes (36 million litres). This is due to the dominance of cheap imported products on Australian supermarket shelves.
However, the Australian dollar's depreciation against the euro makes imports more expensive, which could impact consumption patterns. Australian olive oil production is estimated at 19,736 tonnes (21.5 million litres) in the 2019 season, up from 9,390 tonnes (10.3 million litres) in 2018. This production accounts for only 0.6% of global production, which was 3,131,000 tonnes in 2018/19.
Despite the small contribution to global production, Australian olive oil is gaining prestige and recognition for its quality. The Australian olive oil industry is becoming beautifully boutique, similar to the Australian wine industry in the 1980s. In the 2022 New York World Olive Oil Competition, Australian oils ranked 10th out of 28 countries, a respectable achievement.
Australian olive growers have experienced varied crop outcomes due to adverse weather conditions, leading to supply and demand issues and higher prices. However, the 2024 crop season is expected to be better, with initial estimates in line with expectations. Australian olive oil exports were 2,000 tons in 2022/23, a decline from the previous year, but the scarcity of fruit yields is expected to lead to higher prices.
Overall, Australian olive oil consumption is significant, and the industry is evolving to meet this demand, despite challenges in production and exports.
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Olive harvest methods
Olives are typically harvested in Australia between April and June each year. In 2023, some farmers began harvesting earlier, in March, due to cool temperatures. In 2022, the harvest was affected by adverse weather conditions, with some groves being too wet to allow machinery to be brought in, meaning that olives had to be picked by hand.
Olives can be harvested using traditional (manual) methods or mechanical methods. Traditional methods include picking by hand, using poles or rakes to knock the fruit off the tree, or shaking the tree using mechanical tree shakers. When using these methods, netting is placed around the tree to catch the olives as they fall. Mechanical methods are employed in high-density plantations using hedge-row harvesting vehicles with rotating brushes or rakes.
Once the olives are separated from the branches, they must be brought to the mill within hours to avoid oxidation and retain freshness. At the mill, the olives are washed and separated from stems and leaves. The basic principles of olive oil extraction remain the same as they were thousands of years ago: the olive fruit is crushed into a paste which is then pressed to extract the oil. In ancient times, a millstone was used to crush the olives, and the paste was transferred into flat baskets which were then stacked and pressed using physical force. Today, this process is typically done using mechanical milling followed by a malaxer, which blends the paste until it is ready for pressing, always below 27ºC.
After the extraction of the oil, it is placed in a temporary tank for decantation or placed in a further centrifuge to allow any residual sediment or water to be extracted. Decantation uses gravity to separate the components, while a centrifuge uses centrifugal force. After this process, the oil is ready to be sampled and graded. The main grades of virgin olive oil are Extra Virgin, Virgin, Ordinary Virgin, and Lampante Virgin, with Extra Virgin being the most prized. Lampante Virgin olive oil is not fit for human consumption and will undergo further physical or chemical refining unless it is being used in non-food applications.
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Olive oil grades
Australia's olive oil production is estimated at 19,736 tonnes (21.5 million litres) from 118,750 fresh tonnes in the 2019 season, up from 9,390 tonnes (10.3 million litres of oil from 52,165 fresh tonnes) the previous year. Australian olive oil production represents only 0.6% of total global production. The key regions for olive oil production in Australia are north-central Victoria and north of Perth, Western Australia.
Now, onto olive oil grades. The various grades of olive oil are defined by different standards around the world, with slight differences in the parameters used to define each grade. The grades of olive oil are based on production methods, quality, and suitability for consumption.
Extra Virgin Olive Oil (EVOO) is the highest grade of olive oil and is the natural, fresh juice of the olive. It is obtained solely through mechanical or physical means and has a free acidity of no more than 0.8 grams per 100 grams with no sensory defects. It has a distinctive olive fruity aroma and flavour and contains natural antioxidants, vitamin E, and phytosterols. To be classified as extra virgin, the oil must also pass a sensory or taste test and meet certain chemistry ranges for quality and purity. Virgin olive oils are defined by the Codex Alimentarius, IOC, and Australian authorities as having a median of defects between 3.5 and 6, with a median of fruitiness above zero. The free fatty acid content, expressed as oleic acid, must be less than 3.3 grams per 100 grams.
Virgin Olive Oil (VOO) is obtained by the same process as extra virgin olive oil but is of lower quality, with a higher acidity level and slight organoleptic defects.
Lampante olive oil is naturally obtained but has quality parameters that render it unfit for human consumption without further processing. It has an acidity level of more than 2.0 grams per 100 grams.
Refined olive oils are obtained from natural olive oils through refining methods that do not alter the initial glyceridic structure. This process strips the oil of most natural antioxidants, and artificial antioxidants need to be added. Refined olive oil (ROO) is obtained through methods including deodorization, resulting in a low acidity content of no more than 0.3 grams per 100 grams.
Olive oil (OO) is a blend of refined olive oil and natural olive oils that is fit for human consumption. It has an acidity level of not more than 1.0 grams per 100 grams. Olive pomace oils are obtained by treating olive pomace with solvents or physical treatments.
It is important to understand the different grades of olive oil, especially extra virgin olive oil and olive oil, as they pertain to the quality, taste, and health attributes of the product.
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Olive oil production regions
Australia's main olive-growing regions are Victoria, South Australia, and Western Australia. Boutique producers like Goldi, a family-run farm in Kialla, Victoria's Goulburn Valley, produce single-variety oils like the punchy Italian Coratina and the milder Spanish Arbosana. Rio Vista, another boutique producer, presses its own oil and occasionally helps its neighbours, which is a benchmark of quality according to co-owner Sarah Asciutto. Mount Zero Olives sources olives across Victoria and South Australia, and in 2024, expected to launch an early harvest of extra virgin olive oil in April.
The Australian olive oil industry has become beautifully boutique, similar to how Australian wine developed in the 1980s. While Australia only produces 0.5% to 0.6% of the world's olive oil, it still ranked 10th out of 28 countries in the 2022 New York World Olive Oil Competition.
The olives are typically harvested in the winter months of April to August in the Southern Hemisphere. Adverse weather conditions during flowering can impact production, leading to supply and demand issues and higher prices. The 2024 crop season was expected to be lower-yielding, with flowering commencing in mid-October and full bloom occurring in late October to early November.
Australian olive oil exports have declined in recent years, with 2,000 tons exported in 2022/23, down from a record 4,000 tons in 2020/21. This has been attributed to light crop years and supply and demand issues, resulting in higher prices. However, some producers remain optimistic about the upcoming harvests, with expectations of good yields in certain regions.
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Frequently asked questions
In the 2019 season, Australia produced 19,736 tonnes (21.5 million litres) of olive oil. This is a significant increase from the 2018 season, which saw 9,390 tonnes (10.3 million litres) produced.
Australian olive oil production represents only 0.5-0.6% of total global production.
Australia's main olive-growing regions are Victoria, South Australia, and Western Australia.
The Australian olive oil industry faces challenges such as adverse weather conditions, supply and demand issues, and competition from cheap imported products. However, the lower Australian dollar has made exports more competitive.
