The health and therapeutic benefits of olives were first mentioned by Hippocrates, the Father of medicine. For centuries, olives have been recognised in the Mediterranean diet.
Olive trees have been cultivated from the beginning of recorded history, around 6,000 years ago. The trees have been known to produce a crop for hundreds of years. Some trees in the Mediterranean region have been reported to be over 2,000 years old. Olive trees are extremely hardy and have been known to survive on almost barren sites during drought conditions.
Presently the Mediterranean countries of Spain, Italy and Greece supply most of the world demand for olive products. Countries like Syria, Turkey, Tunisia and the USA also help meet the expanding demand for olive products. Figures published by the Australian Bureau of Statistics indicate olive imports into Australia have increased at an average of 11.2% per annum on a dollar basis from the years 1993/1994 to 2001/2002. As an exported product on the international stage, Australian olive products are steadily achieving recognition for taste and overall quality.
As suggested by the Australian figures, world consumption of Olive Oil and Table Olives has grown constantly in recent years. This upward trend as shown in graph a, has seen world consumption of olive oil reach a level of 2.6 million tones and table olives rise by over 14% from the 2001/02 crop harvest. Consumption figures are expected to continue to inch upwards in 2004 with the oil figure for 2002/03 estimated to represent a rise of 61,000 tonnes (Australian Olivegrower & Processor Nov-Dec 2003). The primary reasons for this growing trend of worldwide consumption is due to changes in consumption habits and the relationship between structure of demand and the behaviour of consumers.
Changes in Consumption habits
Consumer food purchasing behaviour has changed substantially in recent years to the point where it is no longer considered a low-risk task. Instead, it is viewed as a high-commitment activity as consumers become increasingly aware of the relationship between diet and health. This growing tendency to consume healthier products is a key factor working to the advantage of raising olive consumption. The reigning consensus about the health-promoting properties of olive oil no doubt plays a part in this trend, as does the worldwide recognition of the healthiness of the Mediterranean diet, in which olives are a fundamental element. (Olivae, June 2003)
Demand structure/consumer behaviour
As can be seen from the accompanying graphs olive oil consumption has soared by almost one million tonnes in the last 12 years. This spectacular climb is due to the behaviour of demand: during the period analysed consumption increased by over 600,000 tonnes in the European Union and the relative growth of consumption was even greater in Australia (graph b). (Olivae, June 2003).
In amidst the increases in world consumption (graph a) Australia finds itself in a unique position as the demand for olive products coincide with adverse hot dry weather in the Mediterranean countries, which is reducing their crop expectations for both this season (2003/2004), and for the next season (2004/2005). Paul Miller, Australian Olive Association President, has been noted as commenting that as we anticipate production increases over the next two seasons the global environment looks favourable with regard to demand with an amazing 10% growth for Virgin Olive Oil in Europe. (The Olive Press, Summer 2003)
Austrade also recently commented on the opportunities for the olive industry as an emerging trade area, reporting that with the apparent opportunities in Japan and the United States due to consumption demands, the future of Australian Olive products seems to hold good prospects (Australian Olivegrower & Processor Nov-Dec 2003). It is therefore expected that with the potential for an continued increase in Australian (graph b) and world (graph a) consumption coupled with the predicted demand for supply from the world market that Australian olives will have a substantial opportunity to increase its presence in the international export market.
Refer to News in the Investor Login section for further Olive Industry News.