Increased consumption of olive oil, coupled with its healthy image, will aid industry growth.
Melbourne, Australia (PRWEB) July 10, 2014
Over the past five years, the Olive Growing industry has grown from a low base due to disastrous weather conditions caused by drought. In 2009-10 alone, industry revenue plummeted 24.0% as the hot dry climate wreaked havoc on olive plantations. As a result, industry revenue has grown at an annualised 2.9% over the five years through 2014-15. IBISWorld industry analyst Ryan Lin states, “Despite the industry growing steadily overall, the absence of a strong rebound following the official end of the drought in 2012 is a troubling concern for domestic olive growers.” Many boutique growers are expected to have begun olive planting as a means to diversify the income earned by their farms. However, over the past five years, smaller olive growers have scaled down capacity due to adverse weather conditions. As a result, much of the growth in the Olive Growing industry over the past five years has been captured by larger growers. In 2014-15, conditions are not looking too positive for smaller industry players, with many olive farms up for sale as boutique growers attempt to leave the industry. Industry revenue is forecast to grow by a meagre 0.9% to total $77.3 million as a result.
Over the next five years, the Olive Growing industry is anticipated to show stronger signs of life, especially as larger industry players continue to acquire smaller olive growers while boosting their overall scale of production. According to Lin, “the continual healthy image of olive oil, coupled with the perceived high quality of Australian agricultural products will boost overall olive production due to growing domestic and international consumption.” The expected growth of high-value olive products, such as organic and premium varieties will fuel a much-needed boost to the fortunes of the industry. Use of olive oils in fine cuisine and premium cooking will also continue to aid olive growers.
The Olive Growing industry displays a low level of concentration. The industry is highly fragmented, meaning no single player holds a commanding percentage of the market. While the industry’s only major player, Boundary Bend Limited, holds a significant share of the market, it is not enough to allow the company to dominate the industry. The industry is characterised by a high number of small growers. These growers are typically boutique, operating on small properties with no more than a few hundred trees. A number of small growers usually supply low quantities of harvested olives to wholesalers that sell the collective quantity of olives to processors.
For more information, visit IBISWorld’s Olive Growing report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld Industry Report Key Topics
Companies in this industry are primarily engaged in growing olives to be further processed into table olives or olive oil.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.