Disease hits foreign olive oil price
Foreign olive oil prices for Kiwi shoppers are expected to surge due to a global shortage. But New Zealand’s olive growers could win new business from the crisis, which has been caused by poor rainfall and attacks by a virulent disease dubbed ’’olive tree leprosy’’ on plantations in the Mediterranean region.
William Aitken managing director of William Aitken & Co, importers of Lupi olive oil, said production in Southern Europe had slumped.
It follows the double whammy of drought and the fast-spreading Xylella fastidiosa pathogen, which dries out trees making their leaves appear scorched.
As a result, Aitken said consumers could expect to pay an extra $1.50 per litre on imported olive oil.
‘‘As importers, we try to absorb normal seasonal cost fluctuations, but these issues affecting production in the Mediterranean are now seriously compounding, and will inevitably hit New Zealand consumers,’’ Aitken said.
Aitken said the olive crop was biennial, but in the last five years, total supply had been decreasing
An order from China could be all of our country's production for one year.
at a rate of 30 per cent every year in the Mediterranean.
Spain produces about half the world’s olive oil supply, with 340 million trees now under threat.
Gayle Sheridan the head of olive growers association Olives NZ said because of the poor crops in Europe, growers in New Zealand had been garnering attention from importers in China and Japan.
But Sheridan said catering to international markets posed a challenge to many Kiwi growers, as the increased rain in recent months had caused a problem in New Zealand too - slashing production nationally by half.
‘‘The challenge is the volume importers especially from China are after,’’ she said.
‘‘New Zealand is a boutique producer of olive oil, so an order from China could be all of the country’s production for one year.’’
Despite the shortage, Sheridan said she did not expect the prices of New Zealand olive oil to rise.
‘‘Our growers are used to the volatility of the olive crops and will probably just take it on the chin,’’ she said.
Glen File the head chef at Baduzzi in Auckland said the restaurant ordered five to 10 litres of olive oil from local growers each week.
File said if olive oil prices did rise, restaurants would usually opt for substitutes rather than passing on any price hikes to customers.
Sheridan said 2016 was the best year for New Zealand’s olive production, with growers producing about 400,000 litres.
But with a poor production year, Sheridan said consumers should be weary of olive oil fakes that would likely increase in availability on the market.
Aitken said for now, rationing might be a good idea.
The olive tree killer:
Xylella fastidiosa bacteria was first found in Italy four years ago and has also been detected in France. It’s thought around one million trees in Italy have already had to be destroyed, including healthy specimens which are in close proximity to infected plants.
Insects called Meadow Spittlebugs are suspected of passing on the bacterial disease which can affect up to 300 plant species. Although the insects only have a flying range of around 90 metres, the fear is the disease will spread to the big Mediterranean olive producing countries; Spain, France and Greece.
Last year, the disease was discovered in Cherry trees in the Spanish islands of Ibiza and Mallorca. In June, it was found on the mainland for the first time in almond trees in the country’s Valencia region and steps were taken to contain it. Tests carried out on olive trees in the same area came back negative.