Food security: A challenge for the Australian olive industry

By Laura Thomas

Firm quality standards and industry collaboration are more important than ever for Australian olives as food security challenges threaten agriculture worldwide, an industry leader has warned.

Australia is a producer of quality food and widely recognised as “food-secure”, but a changing world is challenging that position like never before.

Climate change, extreme weather events, drought, biosecurity threats, soaring input costs, politics, supply chain and workforce reliability and farmer wellbeing are applying increasing pressure on the nation’s traditionally robust food supply system.

The impact of trade misbehaviour on price and sustainability, climatic changes, production cost and labour availability are the leading food security challenges facing the Australian olive industry.

But despite the challenges, AOA director and consultant Paul Miller said the future is bright.

He explained ongoing industry collaboration and a continued focus on quality and sustainability would be vital going forward as the industry expands and demand for Australian olives grows.

“I am confident, if we hold our line regarding the quality of Australian olive products and work together to overcome the challenges,” he said.

“The numbers of consumers of Australian products are increasing and they appreciate the nutritional, health and culinary value of the products that the domestic industry supplies.

“This is the basis of our future.”

Consumer demand

Extra virgin olive oil is increasingly the oil preferred by consumers and becoming a staple and essential ingredient in households and food service worldwide.

But while it is produced on every arable continent, it accounts for just 1.5% of global fat and oil production.

“The demand for extra virgin olive oil is forecast by the global industry to increase in the foreseeable future, based on its culinary, nutritional and health benefits,” Mr Miller said.

“During recent shortages of olive oil, consumers in developing markets exhibited a willingness to pay a premium for this valued product.

“So, in regard to consumer demand and the importance of food security for extra virgin olive oil, future demand is positive, subject to genuine quality and ongoing reinforcement of the value through education and promotion.”

Dodgy trade practices

Trade misbehaviour and its impact on price and sustainability continues to present a major challenge for the industry, as efforts to promote quality production and assurance are undermined.

“Industry conferences and media reports continue to reinforce the importance of these efforts and emphasis the need for the industry to respond to the positive market context for the future,” Mr Miller said.

“Yet a significant part of the global olive oil industry is still willing to cheat quality requirements and offer cheap, inferior and in some cases below-cost products labelled as extra virgin, or refined olive oils on the same shelf with labels so similar it is easy to mistake them for extra virgin olive oils.

“Ignorant or unscrupulous major retailers are equally willing to support this fraudulent trade, including in Australia.

“This is done notwithstanding that reduced product margins inevitably result for the same retailers. The industry media regularly decries such practices in the Mediterranean and recent surveillance shows that the Australian market is not immune from this.”

Mr Miller explained the undermining of consumer confidence and supply chain viability provided a significant food security challenge – now and into the future.

He warned the table olive market was not immune from these challenges either.

“Premium table olive production also needs the success of extra virgin olive oil to continue to help underpin the real and perceived quality of table olives – because they are closely associated premium products,” he said.

Climate and water

While olive trees use less water than many other fruit crops and can survive extreme climatic events, they require irrigation to be profitable in Australia.

This makes water security basic to food security for the olive industry.

“Water requirements for Australian olive production have increased in the last 20 years, as climatic extremes have extended earlier and later in the growing season,” Mr Miller said.

“Olive trees can survive extreme climatic events but the flowers and fruits are susceptible to damage by extremes of heat and cold along with diseases caused by extreme wet weather events. These food security challenges exist in most world olive production areas.”

Production cost and labour availability

The dynamics of olive and oil production are changing as they are for many other foods, with increasing input costs and reduced labour availability two key aspects.

“This will require ongoing R&D and extension across agriculture to help adapt farming practices and adopt new technology to remain competitive,” Mr Miller said.

“The uncertainty of supply and costs of diesel have become a recent and likely ongoing challenge.”

Looking to the future

AOA chief executive officer Michael Southan said the AOA’s focus on sustainable growing practices and quality olive production would play an important role in the industry’s future success.

“There’s no doubt food security challenges are something our industry and the wider agriculture sector must continue to stay ahead of and prepare for,” he said.

“But we know that thanks to the AOA’s commitment to industry research and development, grower education and industry certification over the last 20 years, our industry is now in a very good position for the future.”

Read more about what is and can be done to ensure food security for the Australian industry and how you can play your part, in next week’s edition of Friday Olive Extracts.

Sources:
Paul Miller, AOA Director and consultant
Department of Agriculture, Fisheries and Forestry
Australian Olive Association