Olive oil costs are rising on a mixture of provide disruptions and they’re prone to stay elevated for an additional 12 months, a number one trade skilled has warned.
Olives South Australia president Steve Pantelos stated Europe’s summer time drought had hit producers in Italy and Spain and low home yields for Australia’s east coast growers had diminished provide, pushing up costs for shoppers on the checkout.
“The price has significantly increased. Certainly on a wholesale level, it has definitely gone up at least 25 per cent,” Mr Pantelos stated.
“If you go back two years, you’d buy a litre of oil on the shelf for $9.50 or $10. Today it is closer to $15.”
Mr Pantelos stated he was fielding calls from Spanish and Italian firms keen to purchase Australian oil.
“It doesn’t leave a lot left for Aussie consumers,” he stated.
And although it’s a success to Australians negotiating a cost-of-living disaster, Mr Pantelos stated the worth bounce was good news for growers.
“Growers are certainly happy, the industry is pretty excited about the prices,” he stated.
“It is very good news for them, they have been struggling for some years.”
The Mediterranean nations of Spain, Greece, Morocco, Turkey and Italy are the world’s high producers of olive oil, in response to the Australian Olive Oil Association, with Australia a relatively minor participant within the world market.
Mr Pantelos stated even when situations improved subsequent yr and yields elevated, Australian growers would nonetheless get pleasure from elevated costs.
“I can’t see them going down,” he stated.
Western Australian grower Barry Sanders is buoyant about his trade’s future and stated he had earned 10-15 per cent extra on his product in comparison with final yr.
Mr Sanders, who runs the 300-tree Tarralea Grove at Jarrahdale south of Perth, stated some WA growers had been desperate to increase manufacturing.
“There are some growers putting in more trees,” he stated.
“I’m certain some of them are looking to send more oil to the east.”
Source: www.perthnow.com.au
