Opportunities beckoning for extra virgin olive oil

SA Olive plans to explore various new markets, including neighbouring African countries, the US, Asia and Europe. This strategic expansion plan is prompted by a global heightened demand for extra virgin olive oil, Wendy Petersen, SA Olive’s newly appointed CEO, told Farmer’s Weekly. The SA Olive association represents the interests of the South African olive industry.

According to Petersen, the apparent health benefits associated with extra virgin olive oil (EVOO) are increasingly capturing consumer attention, fostering a growing interest among both new markets and consumers. Around 1,5 to two million litres of extra virgin olive oil are produced locally each year with a further five to six million litres estimated to be imported annually.

“About 95% of all South African olive oil is EVOO. The SA Olive Commitment to Compliance seal displayed on bottles of EVOO is more than a mere emblem; it is a declaration of confidence and a guarantee from SA Olive member producers that the product is not only of the highest quality but is also 100% South African and is genuine EVOO,” she added.

Petersen said expanding farming and exporting to other countries presented valuable opportunities.

At the moment 95% of South African EVOOis produced in the Western Cape. However, due to the high costs involved in planting, farming operations, and processing, a strategic approach is essential. Olive trees take four to five years to reach maturity for harvesting, requiring significant capital investment and imposing a substantial financial burden on farmers.

To foster growth in the olive industry, address the supply-demand gap in South Africa, and support emerging farmers, collaboration with the government or investment partners is crucial. Support for prospective new producers is also needed and should incorporate planting new trees and providing technical, mentorship and financial assistance to ensure the industry’s sustainable development.

“Investing in the future of our industry is at the heart of our mission,” Petersen said. “From succession planning to training and development, we are determined to shape a future where the South African olive industry thrives and flourishes for all participants.

“Despite the challenges, such as decreased yields, rising input costs and unprecedented weather, both locally and globally, the local olive industry remains resilient and showcases great achievements. The 2023 NYIOOC World Olive Oil Competition saw all the South African entries winning awards – an unprecedented record of perfection with a 100% success rate,” according to Peterson.