Industry Analysis & Industry Trends
Over the past five years, the Olive Growing industry has grown from a low base due to disastrous weather conditions caused by drought. In 2009-10 alone, industry revenue plummeted 24.0% as the hot dry climate wreaked havoc on olive plantations. As a result, industry revenue has grown at an annualised 2.9% over the five years through 2014-15. Despite the industry growing steadily overall, the absence of a strong rebound following the official end of the drought in 2012 is a troubling concern for domestic olive growers. Many boutique growers are expected to have begun olive planting as a means to diversify the income earned by their farms. However, over the past five years, smaller olive growers have scaled down capacity due to adverse weather conditions... purchase to read more
Industry Report - Starting a New Business Chapter
Potential olive growers have minimal barriers to entry to overcome. Capital costs to establish operations include purchase of land, olive trees and minimal cultivating equipment. Larger players tend to have higher capital costs, as they rely more heavily on automated harvesters. Many farms have been in families for generations, limiting the need to purchase land in many instances. Instead, generational farmers are able to convert existing land into olive production.
The industry is highly fragmented. This allows new growers to enter the industry without strong competition from other growers. One potential barrier to new entrants is relationships with wholesalers. However, this is not a significant barrier, as wholesalers typically sources olives from a number of growers... purchase to read more