ONE of Western Australia’s best known olive oil producers, Olio Bello at Margaret River, is on the market with an asking price of $8.75 million.
ONE of Western Australia’s best known olive oil producers, Olio Bello at Margaret River, is on the market with an asking price of $8.75 million.
The 121-hectare property has been developed by 71-year-old Jack Whitkin, who describes himself as a reluctant seller.
Mr Whitkin said his age, and the fact all his children live in the US, left him with little choice but to sell.
Olio Bello, a certified organic producer, has won a number of awards for its extra virgin olive oil.
Mr Whitkin said his intention was never to compete with the big growers, preferring to focus on premium, organic oil.
Joint selling agent John Reid of Cape Naturaliste First National said the land value, of about $37,000 per hectare, accounted for half the asking price.
The balance was based on improvements to the property, including the buildings, fencing and other infrastructure, and the olive grove.
The property has 7,000 olive trees and plenty of room for extra plantings.
It also has a world-class olive press that processes olives for most growers in the South West.
The growing volumes of olive production in the region have allowed Olio Bello to run its press more efficiently.
“We will probably make money from contract pressing this year for the first time,” Mr Whitkin said.
He said he was keen to remain involved in the business after the sale.
“Its hard work but it’s a lot of fun,” he told WA Business News.
“I still get a thrill seeing a new oil come out of the mill.”
Mr Whitkin is positive about the outlook for the industry, so long as producers remain focused on quality control.
“I think the key to the Australian olive oil industry is the quality,” he said.
“We can produce great olive oil, some of the best in the world.
“That means we don’t have to price to the rest of the world, we can price above it.”
Mr Whitkin said he had been pushing for adoption of a “really stringent” quality assurance program.
One problem was that a lot of the oil sold as ‘extra virgin olive oil’ – mainly imports – failed to meet the relevant criteria.
He said it was imperative that fruit be pressed and stored within 24 hours of harvesting.
Problems often arose after pressing, with oil sitting for long periods in bottles on shop shelves.
Olio Bello stores its oil in a darkened cool room at 16 degrees, with a nitrogen head pumped into the tanks.
