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I would urge caution if taking a long term view

True, a new industry such as this is often doubted, that will cause price fluctuations.

I seem to recall reading over the last couple of years that when all the growers in the pipeline finally come online that the market will be flooded and Australia will be export positive for olive oil. This will mean depressed prices and profits.

I'm sure the same was said about the wine industry in the early days.
More production not only made wine much cheaper in Aus but also created a massive home as well as export market that was very small(Aus market)
& non existant (export market) before.

I see some rather tempting parallels between the two.
The olive oil market has been growing dispite the very expensive price in comparision to other oils.Higher Aus production based on sales of olive oil at current prices in my opinion could well be misleading, as I feel that higher production(more competition) will only serve to supply a bigger slice of the market to olive oil which long term is very positive & makes those figures wrong.

Its why shopping centres work , why car yards are often bunched together, competition isn't bad, it will produce winners & losers & in this case it will make a help mould a virgin industry an industry that I feel has a good growth potential long term.

Over production I see as a shorter term concern, as with most producers thats something that happens more on a year to year basis.


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