14 May

Australia’s largest olive oil company is expanding into Argentina.

Boundary Bend Limited, based in north-western Victoria, says it doesn’t make financial sense to put new plantings in Australia, while water prices are high and reliability of water is low.

Rob McGavin from Boundary Bend says there are some advantages to farming overseas.

“The land and water package in Argentina is less than ten per cent of the cost of the land and water package here in Australia, so obviously the returns are higher, and it’s a world market,” he said.

“So obviously it comes with some other risks, and that’s why it’s cheaper.

“But we think those risks are managable, and we’re prepared to dip our toes in the water.”

Meanwhile, the olive industry is one that’s actually benefited from the drought.

While water shortages in South Australia have slightly reduced olive yeilds, they’ve greatly enhanced the flavour.

President of Olives South Australia, Lisa Rowntree, says that the dought has produced the best olive oil she’s ever tasted.

“With the drought what tends to do is produce probably sometimes better flavoured oils, more fruitier oils,” she said.

“I actually tried some oil today from a grower near Virginia and it was lovely, really lovely fruity oil.

“So the drought would have affected the amount of olives that are on the trees, but I think it’s going to produce some sensational oil.”

[Source] Click here

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