CALIFORNIA BUSINESS MINUTE
CA Olive Oil Production
12-07-07
Hi, I am Tim Johnson and welcome to the California Business Minute.
California is the leader in domestic production of olive oil in nation. While US
per capita consumption have more than doubled over the last decade, imported
olive oil continues to account for over 99 percent of the US consumption.
In 2005, there was over 6,000 acres in olive groves in the state. Recent increases
in new plantings now illustrate over 10,000 acres. And while it appears
that this years crop will set new harvest records, California is comprised of small
growers and processors involved in a niche market, producing handcrafted, boutique
olive oil.
Even with the overall demand for the product, Californias small market share coupled
with the high costs of small scale processing and marketing limits the amount of olive
oil that can profitably be processed in the state.
At this point, if all of the acres in the state for olive production were crushed for
oil, it would only account for 10 percent of the total domestic demand in the nation,
so there is great opportunity to grow Californias olive oil industry.
I am Tim Johnson and this has been the California Business Minute.
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