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<pre>In their presentation the levy committee have used the figures of 15%
yield and $5/litre as "conservative estimates" and that the levy of
"$10/tonne represents approximately 1.67% of GVP based on $600/tonne for
olives."

In 2003 and 2004 the large investment processors advertised a figure of
$275/tonne plus GST for costs of processing fruit.

They will also pay $4.50/kg for oil nett production costs *note that 1kg
of oil does not equate to 1 litre of oil.

A 15% yield equates to 6.66 tonnes of fruit for 1 tonne oil. Therefore
1 tonne oil would cost $1,813 (6.66 x $275) in processing costs.

This means the nett return for 1 tonne oil would be $2,687 ($4,500 less
$1,813).

The return would be split over 6.66 tones giving the grower $403/tonne
not $600/tonne as quoted.

Oil would be $2.95/litre not $5/litre as per the levy presentation.




Any thoughts?


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Wednesday, 30/4/2003

Olive oil returns expected to be halved -

Producers of olive oil in Victoria, New South Wales and South Australia
will have their returns halved this year, as Australia's major processor
tightens its belt.

The SA Olive Corporation, based in that state's Riverland will pay $3.50
per kilogram of olive oil, down from close to seven dollars last year.

General manager Jim Smythe says slashing returns is the only way the
company will remain competitive with European producers, who bring their
oil into Australia tariff free. "We're adopting a realistic price
comparable with the imported price of olive oil, so that we can be
competitive in the supermarkets.

"The industry itself is seeking to apply a counterveiling tariff to
imported olive oil, which would help us a great deal, but at the moment
our price reflects the imported price."

Meanwhile president of South Australia's peak body Olives SA, Lisa
Rowntree says it's no surprise prices have been brought into line with
world prices.

www.abc.net.au/rural/news/stories/s843739.htm

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