Projects

Results: Investing $2.4 million over eight years in Australia’s olive industry has helped to create buoyant, premium olive oil markets and produced returns of more than $40 million over 20 years.

The investment, led by the Rural Industries Research and Development Corporation (RIRDC), began in 1998 when the industry was relatively young. An evaluation carried out by the Centre for International Economics has confirmed the R&D investment has been a major contributor to the burgeoning Australian olive oil industry, which is expected to reach 25,000 tonnes in 2010.

RIRDC Chairperson Mary Boydell says support and investment in emerging industries helps to create stronger, more resilient agricultural communities.

“The major outcomes of the seven olive industry projects we included in the evaluation are better quality olive oil production and the associated ability to charge a premium price for this oil,” Ms Boydell said.

“We know that olive oil consumption in Australia is on the rise, having nearly doubled over the ten years from 1992 to 2002 , so the economic outcomes of this research can be measured in terms of increased export revenue and import replacement.

“However there is also the social impact of creating new, resilient industries that help to strengthen rural communities which may have exhausted traditional agricultural options.”

The evaluation found that over a 20-year time-frame, even the lower quality olive oil produced in Australia will produce a return on investment of $42.27 million (in 2007 dollar equivalents), while the high quality products would produce a net benefit of $197.13 million.

“Almost all oil produced in Australia is extra virgin olive oil, aiming for the higher end of the market.

“The intention of this research was to move olive production from a boutique cottage industry to one that is import-replacing and export-creating,” according to Ms Boydell.

“By 2010 it is our goal to have Australia acknowledged globally as a producer of high quality and price competitive olive products, and our research program is geared to support this.”