NOTICE: Hard copies of the Australian New Crops Newsletter are available from the publisher, Dr Rob Fletcher. Details of availability are included in the
Advice on Publications Available.Bob Neville
Marketing and Development Manager
Inglewood Shire Council
Inglewood, Qld 4387
Telephone: 07 4652 1444
Facsimile: 07 4652 1512
Email: bobneville@bigpond.com.au
Inglewood Olive Processors aim to produce top quality olive oil and products for the domestic market but also ultimately for the world market. This is a vision based on an existing and growing market demand. However, the existence of a market does not guarantee a profitable, or even viable market share for all players. Although there are markets for wool, wheat, beef, fruit and vegetables, the producer is unlikely to be able to exert any influence on the marketing outcome.
It is unlikely that the olive industry will be any different unless the industry, starting with the growers, is prepared to consider and to understand some basic marketing principles.
Communications and movement of goods is on a massive scale across the world. With growing world populations, world demand for food and essential consumer products will continue to increase. Competition in many of these products will also increase.
Decisions being made now and in the near future will determine how effectively the Australian olive industry will be able to compete in the future.
No matter how big a market can become, the benefits to producers depend on who controls the market. Those controlling the market, eventually control the price, to the grower, the processor and eventually to the consumer. In such a situation, a controlling influence ensures that prices to the grower and processor are kept to a minimum, whereas prices to the consumer are as high as the consumer will accommodate.
Competition can be good for some businesses in the marketing chain, from producers to processors, distributors or retailers and eventually to customers.
In the region-to-region, mass consumer marketing which occurs today, growers and processors of commodities such as olive oil usually do not sell direct to the consumer. Someone is in between, and as it is today, the distributor may also be the retailer.
How can the grower or processor have any influence on the market under these circumstances?
Firstly, the grower and processor need to ensure they have a realistic level of control in the marketing chain and this means they must have a united vision, realising that their product must
be sold in the real world of region-to-region, mass consumer marketing.
Secondly, they must ensure that the product quality, consistency and market image, both domestically and internationally, is higher than consumer expectations.
Thirdly, they must establish strong national brands which the consumer is persuaded to prefer by effective product marketing and advertising.
Fourthly, they must ensure that the price to the grower and processor is at the best possible level. This is achieved by ensuring that the main competition in the marketing chain is between distributors and not between growers or processors. To assist in achieving such competition, it is essential that demand is maximised through the maximum number of potential distributors, world-wide.
If growers and processors are united in their common vision, with quality standards and an awesome worldwide market image even to customers, then the major competition falls on the distributors who are competing for a product which is in high demand because of its producer-established quality and reputation.
Alternatively, if growing and processing interests are fragmented, and competing amongst themselves, the main point of competition is where the industry is most vulnerable.
The vision for Inglewood Region Olive Growers Association is to encourage growers and prospective processors to understand their potential for vulnerability and to unite in support of centralised growing and processing.
Producers need to enter the industry fully informed and prepared. They can achieve this through a Regional Association, networking with other Regional Associations throughout Australia and by direct affiliation with the Australian Olive Association.
There also needs to be a centralised processing and world-wide marketing-led focus.
Any claims made by authors in the Australian New Crops Newsletter are presented by the Editors in good faith. Readers would be wise to critically examine the circumstances associated with any claims to determine the applicability of such claims to their specific set of circumstances. This material can be reproduced, with the provision that the source and the author (or editors, if applicable) are acknowledged and the use is for information or educational purposes. Contact with the original author is probably wise since the material may require updating or amendment if used in other publications. Material sourced from the Australian New Crops Newsletter cannot be used out of context or for commercial purposes not related to its original purpose in the newsletter
Contact: Dr Rob Fletcher, School of Land and Food, The University of Queensland Gatton College, 4345; Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112; International facsimile: 61 7 5460 1112; Email:
r.fletcher@mailbox.uq.edu.au[
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GK; latest update 6 June 1999 by: RF