Smaller olive oil producers in Australia facing strong competitive pressures

Some of Australia’s best-known olive oil producers have revealed that pressures from the high Australian dollar, adverse weather conditions and aggressive pricing of major marketers, are all impacting on their profitability. Western Australia’s Frankland River Olive Company has said in its latest report to the Australian Securities Exchange (ASX) that domestic packaged sales in the June 2012 quarter were less than the previous year. “This is a result of aggressive pricing from some of the major marketers of Australian extra virgin olive, as well as imports of extra virgin olive oil benefiting from the high Australian dollar,” the company said. Red Island said its olive harvest was lower than in previous years, the second disappointing season in row for the industry.