Weekend Argus (Saturday Edition)
Potential for growth in local olive farming industry
WITH production levels down by about 50 percent in Spain and South African consumption up by 20 percent, the South African olive industry is starting to show signs of promising potential, says Wayne Rubidge, Pam Golding Properties (PGP) manager in the Karoo.
“The first olives were produced by Jan van Riebeeck at Boscheuwel in 1661 and it was about 200 years later that the first commercial olives were seen in South Africa. Now, olive farming is one of the fastestgrowing activities in SA’s agricultural sector. Although the anticipated import tariffs are likely to boost local production, the current demand for SA oil from foreign markets is starting to grow, based on import replacement due to low European production, coupled with the fact that SA produces some of the world’s best-quality olive oil. The South African Olive Industry Association rep- resents the interests of olive growers, olive oil producers, table olive producers and olive tree nurseries.”
He says about 68 percent of South Africa’s olive consumption comes from mostly inferior European products, and with the general world shortage, the olive index is up by a massive 50 percent.
The primary olive producing areas in South Africa are in the Western Cape’s Karoo region, with its Mediterranean climate. Apart from traditionally being known for producing wine, fruit and livestock, this region has a climate and growing conditions favourable for olives, which prefer the winter rainfall of the Cape and the dry conditions of the Karoo. The dry summer conditions aid the ripening of the fruit, and water is supplied to the trees through drip irrigation systems. Rubidge says olive oil is very different from vegetable oils in that it can be consumed in its natural state.
“Of all the types of olive oil the best by far is the coldextracted extra virgin olive oil, which has the full flavour as well as all the healthy attributes. As olive oil contains high levels of monounsaturated fats it helps in cholesterol balance, and with high levels of polyphenols, it is a strong antioxidant used to fight free radicals linked to various cancer-related diseases. In addition, olive oil has high levels of vitamin E, A, D and K, according to the SA Olive Industry Association’s website www.sa olive.co.za.”
Rubidge says the various types of olive farms are categorised as commercial olive production farms, boutique olive farms or lifestyle olive farms. Lifestyle farms generally have fewer than 5 000 trees and growers either pickle their own olives or send raw olives to larger producers with olive pressed to produce oil.
“Unlike traditional olive oilconsuming countries where per capita consumption of olive oil ranges between 12 to 36 litres a year, the average South African consumes a mere 80ml. This highlights the tremendous opportunity for growth and expansion in this country. The total SA consumption is about 6.5 million litres, of which local production is less than 32 percent. Extra virgin olive oil constitutes more than 50 percent of imports. Local production is solely extra virgin at present. Local production of table olives is estimated at 3 000 tons a year and 2 000 tons are imported annually (40 percent). Considering these statistics, there is no doubt that this farming sector offers significant potential for growth,” says Rubidge.
PGP is marketing various sizes of lifestyle and boutique olive farms in farming areas in the Western Cape. Between Stellenbosch and Somerset West in the Western Cape’s Boland region is a 23-hectare olive farm with a manor house, 20 cottages and a 20m lap pool – all with uninterrupted views over the Simonsberg and Heidelberg Mountains to Table Mountain. This farm is priced at R17.5m.
In Franschhoek, an awardwinning 19ha olive farm with 5ha of olives, 1.4ha of vineyards (port) and a house is priced at R29m.
“In addition, available on request for serious farmers are some olive farms with more than 15 000 trees or that produce over 30 000 litres of olive oil a year. One of these produces some of the best oil in SA. The property and business are on the market for R26m,” says Rubidge.
Contact Wayne Rubidge on 082 432 9364, 049 8923495 or karoo@pamgolding.co.za