High olive oil price to continue as bug 'decimates' local growers

Spain, the world's largest olive oil producer, has drastically cut production due to successive droughts, pushing global prices to historic levels.

Australia's industry, which is smaller and relatively young, is based predominantly in regional Victoria (Murray region) and the NSW Hunter Valley.

Australian Olive Oil Association general manager Jan Jacklin told ACM local olive growers had experienced a "mixed harvest".

"Overall the volume is just not there which is very disappointing," she told ACM.

She said the Lace Bug had "decimated" olive groves in some parts of the country.

The native insect sucks sap from trees leading olive trees to be in distress and unable to produce olives.

But she said there was some good news on the horizon.

Ms Jacklin expected prices to improve by mid 2025 with harvest in Mediterranean countries appearing "promising".

"There have been some good rains in Spain at the right time of harvest," she said.

"We should see global prices come down in six months' time."

Owner of Oasis Olives John Symington has two farms in Shepparton in regional Victoria and Peake in South Australia.

Mr Symington told ACM that while his smaller farm in South Australia had a horror harvest because of frost, conditions had been good in Victoria.

"It hasn't been too bad for us, it probably is about on par with expectations," he said.

Mr Symington said that before recent price rises many growers had been struggling to make a living from the olive industry.

"Prices have been too low when you consider the amount people use, it is still affordable and it is good for health reasons and it improves the flavour of your food," he said.

"It does provide good value but not as good value as it has."

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He expects prices to be lower by next year but hoped they wouldn't go as low as they had.

"I think it needs to be higher than it was because people need to make a living," he said.