Olive oil prices are on the rise due to supply disruptions, and according to leading industry expert Steve Pantelos, President of Olives South Australia, they are likely to stay elevated for the next twelve months.
Europe has been hit by a summer drought impacting producers in Italy and Spain, leading to reduced stocks, while domestic yields for east coast growers in Australia are especially low, meaning the price of olive oil has gone up for consumers.
“The price has gone up substantially; proven by the fact that a wholesale level has risen by at least 25%. Just two years ago, purchasing a litre of oil would have cost on average, $9.50 to $10 whereas today it could easily be as much as $15,” Mr Pantelos said.
Although it adversely affects Australians struggling to manage their cost of living, Mr. Pantelos expressed the increased prices of Australian oil have been a much-welcomed sign for growers.
He pointed out the surge of calls from Spanish and Italian companies, interested in buying the oil, had limited the supply for Australian consumers. The boost in oil prices has clearly caused joy in the industry.
According to the Australian Olive Oil Association, Spain, Greece, Morocco, Turkey, and Italy, countries located in the Mediterranean region, are the primary producers of olive oil in the world, with Australia having a much lesser role in the international market.
Mr Sanders, the Western Australian grower who runs Tarralea Grove which consists of 300 trees in Jarrahdale south of Perth, was very optimistic about the future of his industry, claiming that he had earned up to fifteen percent more on his product this year in comparison to the last year. Some WA growers have even shown enthusiasm in increasing their production numbers.