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Olive industry statistics from 2004
Summary
Based on the ABS data, olives are a very small industry within
the region. However the number of farms indicates a rapidly growing
industry which will contribute significantly to the agribusiness
base of the AlpValleys. Respondents to the AAVAF Survey 2004 indicated
large expansions of existing plantings.
Two thirds (66%) of production is within Indigo Shire, with a further
20 percent in the Benalla Shire.
The North East Victorian Olive Industry 5 Year Strategic Marketing
Plan: 2002 – 2006 provides a comprehensive assessment of the
future of the industry. In summary, the total retail value of
olive production (at full production) is forecast to be between $11.4
million and $14.6 million. The report indicates there are currently
119,000 trees planted, with plans to plant a further 50,500 trees.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
2002 – 03
AG Survey |
Gross value of production |
$477 |
$13,711 |
$11,027,666 |
Production volume (kg) |
61 |
846 |
8,611,375 |
Total number of trees |
140 |
Unavailable |
20,817 |
Contribution to Victorian GVP
of commodity |
0.1% |
1.3% |
|
Contribution to Australian
GVP of commodity |
0.02% |
0.2% |
|
Estimated number of farms |
1 |
4 |
21 |
| Please note that the
2002/03 figures have a Relative Standard Error of 50 – 100%
and are unreliable. They have been included to indicate likely
growth of the olive industry |
Source: ABS Agricultural Census 1997 and 2001, Agricultural Survey
2002and 2003
Olive industry overview
The industry is highly fragmented, with the majority of trees managed
by a small number of project development groves. Approximately 200-250
hectares are currently under production with between 200-300 trees
planted per hectare.
Detail |
Comments |
Product description |
Fruit and olive oil. |
Main season |
May, June and July. |
Industry associations |
North East Olives Association, Olive Producers
North East Victoria Inc., Australian Olive Growers. |
Domestic market information |
Olive growers receive approximately $7.50 per
kilogram of olives produced, and $25 per litre of olive oil. |
Export market information |
Respondents surveyed stated that none of their
produce was exported at this stage |
Source: AAVAF Survey 2004
Location of the olive industry within the AlpValleys region
2001 Ag Census |
%
of GVP |
%
of production volume |
North East Region |
Victoria |
North East Region |
Victoria |
Benalla (RC) |
22.4% |
0.3% |
22.4% |
0.3% |
Indigo Shire |
67.7% |
0.9% |
67.7% |
0.9% |
Wangaratta (RC) |
9.8% |
0.1% |
9.8% |
0.1% |
Source: ABS Agricultural Census – 2001
Projected olive industry growth
The conditions appear ideal for substantial tree growth and substantial
yields for the 2005 harvest.
Tree planting numbers have declined after initial plantation investment
impetus created large initial plantings. However, in the industry
production the growth and yields from current plantings will increase
with the age of the tree. The Industry will go through a consolidation
phase. The returns on olive oil production will increase with table
olives remaining static.
Source |
Indicator |
Comments |
(ABS) AG Census
and survey data |
Growth in production volume 1997 to 2001 |
Significant production increase during this
period, with continued strong growth |
Current profitability |
Responses ranged from satisfactory to very
low. |
5 year business plans |
Significant plans for expansion across the
industry with most respondents stating plans to increase olive
production - some stated by up to 500% and 1000%. |
Surveys |
5 year business outlook |
Was more favourable than current profitability
responses with most stating a satisfactory or good outlook
for the future. This correlates with many growers being in
the investment stage of their business. |
Business planning / budgeting |
All olive grower respondents drafted a formal
business plan or budget - mostly being 5 year plus plans -
again due to the young nature of the industry. |
Age of producers |
Ranged evenly across all age brackets of those
surveyed, from 30 years to 60 plus years. |
Capital expenditure 2002-03 financial year |
Considering incomes of olive farmers are currently
low due to the early stage of operations, it was not surprising
to find that capital expenditure was relatively low - ranging
from between $0 to $14,000. |
Olive industry labour requirements
Harvesting season occurs in April, May and June with harvest labour
requirements being intensive, while processing is less labour intensive.
Most labour for harvesting, brining and processing of the olive industry
in the region is done by family or friends on a non-commercial basis.
Detail |
Comments |
Estimate of labour employed
directly:- (based on 46 survey responses) |
Full time |
None |
Part time |
None |
Casual |
None |
Areas of indirect employment |
Brokers / buyers, suppliers, transport service
providers and in the near future there is likely to be a need
for marketing services. |
Labour market issues |
None |
Olive industry marketing activities
Detail |
Comments |
Marketing undertaken |
None, though it is recognised that marketing
of the olive industry will be required to create an image of
North East Victoria as an olive growing region. |
Value adding activities |
Several survey respondents undertake their
own processing or as a joint venture with a manufacturer, processing
olives into oil. |
Labels and brands |
Alpine Olives, The Wicked Virgin, Lyric Olive
Oil, Gooramadda Olives, EV Olives. |
Growers do not generally enter into marketing the farm gate product
with the exception of one or two complementary agritourism growers.
Marketing is seen as a non-core or time-consuming activity contributing
little to the bottom line. Growers perceive their marketing of the
product not to be cost efficient and rarely enter into further down
the chain of production marketing activities
Brand building is seen as the responsibility of individual enterprises.
Basic industry intelligence, generic promotion and the progression
of innovation in olive products and market development are mainly
seen as issues that should be addressed through a wider industry
network.
Olive industry strategic advantages and opportunities
- The North East Region is renowned for its good gourmet food and
wine and has an established reputation that could support the growth
of the olive industry.
- The excellent tourism / visitor potential of the region is advantageous
to olive producers who wish to pursue farm gate sales – similar
to those undertaken by wine producers in the region.
- High rainfall, good quality soil and hours of sunlight make the
region ideal for growing olives.
- Suitable well-drained land is essential to continued yield consistency
and was vital in establishing the current plantings.
- Reliable water storage is available for poly pipe and micro
jet irrigation for the peak watering periods of November to January.
- Good access exists for transport to market by road and rail.
- Regional branding and increased economies of scale.
- Olive growers in the region are literate and well educated and
source information regularly, and are willing to learn about growers’ issues
and other peripheral issues affecting their industry. This is critical
in forming proactive grower involvement in all facets of the industry
from farm gate to consumption.
Olive industry strategic disadvantages and impediments to growth
- The long lead-time to production-olives reduces the ability of
olive producers to fund or obtain finance to invest in the future
of their business. The return on any personal investment is therefore
long term.
- It takes approximately 7 years for trees to produce and grow
to maturity while producers still face operation costs.
- Availability of cheap olive and olive oil imports.
- There is currently no critical mass of product that allows for
any cost advantages associated with selling to wholesalers i.e.
(individual growers spend 10-15% on wholesaling agent fees.)
- The ability to secure reliable casual labour.
- Soil type and attention to the problems of acidic soils.
- Managing the transition from the early speculative phase of
the development of the olive industry in the region to a more fully
commercialized industry is critical.
- Urban encroachment/peri-urban problems will impact on the availability
of productive land and possibly poor land management practices.
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