As part of the Strategic Planning for the Olive Industry in North East Victoria, during 2001-02 an extensive telephone survey was conducted of olive growers in NE Victoria. The survey yielded 67 responses. The results of the survey are detailed in this report.
The definition of the North East Victorian region for this survey was larger than may normally be the case. The purpose of the survey was to capture growers who for practical purposes would potentially identify with the NE region, and/or consider marketing olives under a NE marketing structure. Consequently, growers located at the outer reaches of the region such as Violet Town, Wodonga, Wall Walla, Shepparton and Cobram were included in the survey, as well as those in the Alpine, Wangaratta, Indigo, Delatite and Towong Shires.
Survey Responses
The 67 survey respondents have planted a total of 119,000 olive trees, and plan to plant a further 50,500.
The survey asked respondents if they would consider marketing olives on a group basis, for example through a regional group. This is a key question to identify the number of growers that a regional group may be attractive to, and importantly to estimate the potential olive production that such a group may have at their disposal to process and / or market.
Table 3 shows the responses to this question by respondent and by the number of trees.
Table 3 - Would you consider marketing olives on a group basis, for example through a regional group?
Response |
Percentage of Total Responses |
Number of Trees Planted |
% of Total Trees Planted |
Total Planned Plantings |
% of Total Trees Planned |
Total Trees Planted & Planned |
Yes |
73% |
35,637 |
30% |
15,860 |
31% |
51,497 |
Maybe |
18% |
9,039 |
8% |
802 |
2% |
9,841 |
No |
9% |
74,220 |
62% |
34,000 |
67% |
108,220 |
Total |
100% |
118,896 |
100% |
50,560 |
100% |
169,558 |
In terms of the numbers of olive trees currently planted which could be subject to a regional group marketing structure, combining the “yes” and “maybe” responses gives an estimated figure of 44,676 trees, or 38% of the total number accounted for by respondents to the survey. Incorporating the planned plantings increases the number of trees that may be group marketed to 61,338, or 36% of total planted and planned trees.
The estimated production from these trees when mature is provided in production forecasts.
The major varieties of olive trees amongst the survey respondents comprise Frantoio, Manzanillo, Correggiola and Barnea (refer to figure 1 below).
Figure 1
Table 4 shows a full listing of tree varieties currently grown by the respondents.
Table 4
Variety |
Nos. of Trees |
% of Total |
Frantoio |
56686 |
47.7% |
Manzanillo |
12844 |
10.8% |
Correggiola |
11782 |
9.9% |
Barnea |
11708 |
9.8% |
Verdale |
3967 |
3.3% |
Nevadillo Blanco |
3287 |
2.8% |
Picual |
3000 |
2.5% |
Priola |
2947 |
2.5% |
Kalamata |
2676 |
2.3% |
UCA136 |
2167 |
1.8% |
Unknown |
1923 |
1.6% |
Mission |
1898 |
1.6% |
Sevillano |
1665 |
1.4% |
Leccino |
900 |
0.8% |
FS17 |
500 |
0.4% |
Hardy's Mammoth |
416 |
0.3% |
Azapo |
155 |
0.1% |
Pendolino |
150 |
0.1% |
Coratina |
100 |
0.1% |
Nabtambri |
75 |
0.1% |
Razza |
50 |
0.0% |
TOTAL |
118896 |
100% |
The years in which trees were planted are shown in Figure 2. Trees maturing at five year of age or older in 2002 number 53,030, which is 45% of trees planted.
Figure 2
Planned tree planting is shown in Figure 3.
Figure 3
Note: A single enterprise’s planned plantings account for over
90% of the 2002 figure.
93% of trees are irrigated. In terms of harvesting methods, 52% are, or are planned to be, mechanically harvested, with the balance of 48% being, or being planned to be, hand-picked.
In response to whether growers were, or were planning to farm organically, there were no growers actually certified as organic. However, 60% of respondents indicated that they were operating “virtually” organically, or were planning to be organic, after their groves were established. These growers accounted for 23% of the trees in the survey.
Respondents were asked in what product form, (raw, extra virgin oil, table or other), they sell or plan to sell their olives. Table 4 below details the responses to this question.
Table 5 – In what form do you, or do you plan, to sell your olives?
|
% of Total Trees
2002 |
% of Total Trees
2006 |
% of Total Trees
2011 |
Raw fruit |
44% |
28% |
28% |
Extra Virgin Olive Oil |
53% |
66% |
66% |
Table Fruit |
3% |
6% |
6% |
Total |
100% |
100% |
100% |
It is notable that growers accounting for half to two thirds of the respondent’s trees are processing, or plan to process, their own olives. The proportion of trees dedicated to table olive production appears to be less than the level of 10% of trees which has been an average figure used in the industry. Should the table fruit varieties yield more fruit than the oil varieties, this difference may be offset.
Respondents were asked where they plan to process their olives. Figures 4 and 5 illustrate the responses to this question by number of trees and by respondents.
Figure 4
Figure 5
As evident from the question regarding the form in which respondents plan to sell their olives, 25% of respondents plan to be, or are, processing their own olives with their own facility. This translates into 57% of the surveyed trees. However, there are two major olive enterprises represented in this figure. Excluding these two enterprises shows 14% of respondent’s fruit is, or is planned to be, processed at the grower’s own processing facility.
A similar portion, 13% of fruit, is, or is planned to be, processed at a local processing facility. 24% of fruit is to be directed interstate, predominantly to be processed at the Viva plant at Loxton.
While a significant proportion of respondents remain unsure as to where they will process their fruit, it is likely that a majority of smaller growers will be seeking to have their fruit processed locally. This is supported by numerous comments from respondents indicating that they were concerned to have a processor relatively close to their operation.
The respondents marketing, or planned marketing, of their olive products is summarised in Table 6.
Table 6 – Marketing, or Intended Marketing, by Respondents
|
Cooperative |
Not Sure |
Local Outlets |
Own marketing |
Farm Gate |
Export |
% of Respondents |
22% |
22% |
21% |
20% |
14% |
2% |
The categories “local outlets” and “own marketing” both imply marketing in the region, possibly using their own brands and resources. “Farm gate” marketing also includes operating a “cellar door” type of operation. Thus to some extent over half of the respondents see the region as their prime target market. A further 22% are “not sure” of their marketing plans. There is a significant level of interest in co-operative marketing.
Figure 6 and 7 show responses to the question “what percentage of your gross income do you expect olives to account for when you are established?”.
Figure 6
Figure 7
This question was designed to gauge the degree to which growers may be committed to operating their groves in a commercial manner, or, on the contrary, the extent to which growers may feel able to exit the industry. The two figures above illustrate that in general the larger growers are expecting a high proportion of their income to derive from their olive enterprise. That is, 13% of respondents expect their olive enterprise to account for over 75% of their income, and these growers account for 64% of the trees surveyed.
On the other hand, as would be expected a lot of the smaller growers are expecting their olive enterprises to account for a smaller share of their income. Nevertheless, overall 44% of respondents (29 growers) expect their olive enterprise to account for over 25% of their income.
On to production forecasts.
