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  #1  
Old November 5th, 1999, 11:27 AM
JonquilJan
 
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Re: Olive oil prices

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<pre>I have some marvelous olive oil I purchsed through a food buying
cooperative. Is is Achladeri Organic Oliive Oil, EV, First Cold Pressed 750
ml (25.5 fl oz). It is normally priced at $11.75 a bottle but I got it on
sale for $7.87. Oil is from Greece and actually has the title 'Grecian
Natural' on the bottle. Also says 'Produced and Bottled by Estate
Achladeri, Mytilene, Greece'.

Anyone have more information on this brand?

JonquilJan

Learn something new every day
As long as you are learning, you are living
When you stop learning, you start dying
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  #2  
Old November 6th, 1999, 06:06 PM
P Caird
 
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Re: Olive oil prices

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<pre>Brian

Further to my last posting to you may I correct you on pressing charges.
The going rate is $120/tonne or, when the amount is less than 1 tonne,
15cents/kg. Some processors charge more because of inefficient or
inadequate machinery in their possession (myself included this year) but
with the establishment of major or semi-major transitional plant I would
expect the first figures to be maintained.

My other statements seem to hold up to your comments. I would add that if,
by 2006, local production matches consumption you can bet that the Italian,
Spanish and Greek industries will not willingly relenquish their market
place. Nor will they welcome us to their home ground.

Our most significant opportunity will be by producing a superb product as a
matter of course! In our district the majority of plantings have been good
certified stock (the 1st most critical point). In time we will see the
establishment of an industry utilising the most modern harvesting/processing
equipment. The really big question left will be the marketing of the
product at competitive prices. Notwithstanding your gloom at the prices to
be paid to the grower I believe it can be done.

Some of the really big plantations (read investment opportunities) will not
survive their present structures or, if they do, will not provide the
claimed returns to those investors. I believe the only way forward is the
directly link the grower to the value adding chain either by way of a co-op
(Hunter Valley) or by investment in private or public processing and
marketing companies.

Failure to achieve this will leave many growers in the position you lament.
Especially those smaller growers (<5000 trees) of which there are thousands.

It may very well be that there is need to establish an Australia wide
processing/marketing/distribution board although this, of course, is fraught
with it's own problems. Certainly the Oz experience with Wool Boards, Wheat
Boards etc leaves a lot to be desired and with privatisation being the
flavour of the month it may be hard to achieve.

At a minimum however, there does seem to be a need for a national approach
to matters concerning standards which the national Association seems to be
addressing but is this enough?

One last point. You mention the landed price of olive oil being about
$A5/litre which is true enough. But of what standard is this oil? From my
understanding of the pricing structure in Italy the farmgate price for extra
virgin olive oil is $A13/litre. In my experience of blind tastings even the
novice can taste (if that is really the word I am looking for) a supermarket
oil and identify it a being somewhat different from a real extra virgin
olive oil that hasn't been tampered with in any manner. My oil this year is
unfiltered, fruity, has a delightful bouquet and a tempting pepper
aftertaste. You dont find that on a supermarket shelf!

Regards

Peter
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  #3  
Old March 26th, 2006, 11:23 AM
Brian Chatterton
 
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Olive oil prices

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<pre>Yes the Capezzana in Boston was a 750 ml bottle. I think it was a bargain.


Australian growers do face a dilema. Should they compete with
imports or go for quality? Can they compete in either market?

Now to put the cat among the pigeons!!

The current price of imported oil into Australia (Australian Bureau
of Statistics figures) is about $AUS 5 a litre. A great deal of this is
bottled. Some is good quality extravergine etc so a competetive bulk price
for third grade "olive oil" would be $AUS 4 or less. The grower needs to
pay the frantoio for processing - say $AUS 250 per tonne of olives or
between $1 to 1.5 per litre. This leaves a net price to the grower at the
grove gate of under $AUS 3. That sounds grim to me.

Of course it will have to be mechanical picking but even that
costs money (low labour costs are offset by high capital costs and a short
picking season) and there are many other costs as well. I hope for the sake
of the growers that have invested millions that they can make a profit but
it will be tough.

These are the prices being offered to Tunisian growers. They have
low labour costs but all the operations are done by hand. They are finding
it difficult to make a profit.

If the Australian growers go for quality they have other problems.

* First they need to plant quality varieties but many have not.
They believe they can make a "Sauvignon blanc" oil from "sultanas". I hope
they are right but no one else has done so. Quality varieties will yield
less than the bulk varieities but how much less?

* They also have the problem of picking. Given the hot climate
early picking will be absolutely essential for flavour. Early picking will
reduce yield if it is done by machine and you may get less than 20% oil.

How the figures stack up I don't know but growers should run lower
yielding varieties, less recovery and lower oil percentages through their
spreadsheets and see what comes out.

Having made a dash for quality will the price justify the lower
output? If the oil is a "supermarket" extravergine selling at about $AUS7 a
litre retail the higher price may simply compensate for the yield reduction
and profits might be the same. To get a significantly higher price it must
be a premium oil - something better than just extravergine.

Well this should provoke a flurry or is it a "shower" of emails
from Australia and perhaps NZ.

Cheers Brian Chatterton.
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