Despite fears of pest and weather damage, Western Australian olive producers are expecting a bumper year in 2007, with some forecasting their biggest harvest yet.
Despite fears of pest and weather damage, Western Australian olive producers are expecting a bumper year in 2007, with some forecasting their biggest harvest yet.
Olive production has developed into a significant primary industry in WA, with an estimated two million trees planted during the past nine years, the majority under managed investment schemes in the Moore River region.
The industry has experienced exponential growth during the past five years, from just 108 tonnes produced in 2001 to a forecast 10,000t in 2007, according to the WA Department of Agriculture and Food.
Sales of both packaged and bulk olive oils are expected to increase this year, and at higher values due to lower world supplies.
Frankland River Olive Company managing director David Carr said the company was forecasting its biggest harvest ever, pushing cash flow into positive territory for the first time in seven years.
Mr Carr said the company was now turning its focus onto marketing its packaged product, sold under the Jingilli brand, and growing sales to export markets, particularly China, Japan, the US and UK.
“We’ve built our brand as one of the best brands domestically and we are hoping to translate that success into the export market,” he said.
Mr Carr said the company was also undertaking a $500,000 capital raising with institutional investors as it prepared for the March harvest, and to fund the expansion of export sales of its Jingilli products.
Fellow ASX-listed producer, Olea Australis, is expecting to double its harvest from last year, when the company produced 270,000 litres of olive oil.
About 80 per cent of olive oil produced is sold as bulk oil to Australian packagers, and to buyers in Italy and China.
The company’s packaged product, sold under the Dandaragan Estate label, has enjoyed export success in the US, UK, Germany, Japan and Asia.
Managing director Tony Sparks said Australian extra virgin olive oil was gaining a strong reputation worldwide for its freshness and quality, rivalling that of traditional producers Italy and Spain.
“Europeans like the Australian product because they like fresh, 100 per cent natural EVOO,” he said.
“A lot of people aren’t that aware that when they buy Italian oil, a lot of it actually comes from Australia.”
Olea Australis is currently considering a number of options for obtaining working capital, including a capital raising, following a restructure of the company in October, during which the directors bought from growers two managed investment schemes, their leaseholds and other associated interests.
