By Laura Thomas
The Australian olive industry will remain largely unaffected by changes to US import tariffs announced earlier this month.
The controversial tariffs have made global news headlines since they were finally revealed following months of speculation.
The US will apply a 10% baseline tariff to Australian imports, as part of a raft of tariffs being imposed on its worldwide trade partners.
While the full impact is not yet completely understood, the announcement has sparked concern among Australian industry, exporters and producers.
They fear tariffs will drive up the cost of importing into the US, making their products less competitive and disrupting global supply chains.
Echoing this concern and “profound disappointment” was the National Farmers Federation, which described the decision as a “step backward for our nations and for the global economy”.
And as the tariff announcement continues to impact markets and generate negative press the world over, olive lovers may have wondered about the impact on the Australian industry.
Thankfully, the news is good.
Australian-produced olive oil accounts for a small fraction – less than 1% – of total global supply.
Very little, if any, olive oil is exported to the US, according to Australian Olive Association Chief Executive Officer Michael Southan.
“Almost all Australian olive oil is sold to Australian consumers through domestic markets,” Southan said.
“As the national peak industry body representing Australian olive growers, the AOA aims to foster development of the olive industry on home-soil – we’re pleased to report these tariffs will not impact our progress.
“Of course we acknowledge and sympathise with other Australian ag producers who rely on US markets and will bear the full brunt of the new tariffs.”
Australia’s leading olive oil producer is Cobram Estate. The company’s decision to enter the US market and more recently, double the size of its Californian olive grove estate, will allow the well-known Australian brand to continue supplying the US market tariff-free.
Southan said Cobram Estate’s position as a worldwide olive market leader remained strong.
“They have established their own business in the US with Californian-grown olives and domestic processing,” he said.
“Therefore, they are enjoying supplying the US market as an Australian company unaffected by tariffs.”
While Australian businesses continue to navigate the tariff changes, the Australian Trade and Investment Commission (Austrade) is offering support. Visit the Austrade website for details.
