Import Prices Continue to Rise
The price (customs value) of imports of virgin olive oil into Australia continued to rise during February. The average price of packaged virgin olive oil was $6.21/litre, up 7% on January 2009 and 23% on November 2008.
The average bulk virgin olive oil decreased from the January figure to $5.04/litre, down 20%, and down 6% on the November 2008 figure. After three years of steady decline from a high of around 4 Euros/kg in January 2005, the price of extra virgin olive oil has started to even out around 2 Euros/kg, or approximately $4.40/litre.
The increase in the import price and the reduction in value of the Australian dollar relative to that of importing countries in Europe and the US should favour an increase in sales of local product in Australia and an increase in exports. However, this positive outlook may be dampened by the general reduction in retail spending and a switch to cheaper cooking oils.
