Barigelli B/L 20 Olive Washing Machine

Stainless Steel Olive Washer
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Barigelli Olive Washing Machine Mod. B/L 20

The Barigelli Olive Washing Machine Mod. B/L 20 is a high-performance washer designed for professional olive processing lines. Built from AISI 304 stainless steel, this system ensures hygienic and efficient washing of olives before crushing and extraction.
The machine removes dust, leaves, stones, twigs, and other foreign materials while handling olives gently to protect fruit integrity. Rapid-discharge taps allow fast water exchange during continuous production, and the integrated foreign body removal device improves both cleaning quality and production safety.
With a washing capacity of 800 kg per hour, the B/L 20 is engineered for olive mills that require reliability, hygiene, and consistent performance in their pre-crushing workflow.

Uses – For Olive Cleaning and Pre-Processing

The Barigelli B/L 20 is specifically designed for pre-processing in olive oil extraction lines, ensuring that olives enter the crusher completely clean and free from contaminants.
It is suitable for small to large mills where consistent sanitation, efficient debris removal, and rapid workflow are essential for maintaining oil quality. This washing machine supports both continuous and batch washing cycles, offering flexibility for different processing environments.

Technical Specification
Specification Value
Product Name Barigelli Olive Washing Machine Mod. B/L 20
Function Washes olives and removes foreign matter
Capacity 800 kg per hour
Main Material AISI 304 stainless steel
Motor – Foreign Body Removal 0.37 kW
Motor – Leaf Removal 0.37 kW
Centrifugal Pump Motor 3.0 kW at 2,900 rpm
Screen Motor 0.55 kW
Wash Tub Dual taps for rapid water discharge
Operation Continuous or batch washing cycles
Power Supply 400 V, 50 Hz, 3 phase
Approx. Dimensions 1,350 mm W x 1,350 mm L x 2,230 mm H
Approx. Weight 200 kg
Country of Manufacture Italy

Compatibility

This machine is fully compatible with Barigelli olive elevators, receiving hoppers, and leaf removal equipment. It can also be integrated into existing Clemente, Alfa Laval, or Pieralisi washing and crushing lines, allowing easy installation in modern olive processing plants.

Why Choose This Product

The Barigelli B/L 20 provides powerful, reliable and hygienic olive washing performance. Its foreign body removal system protects downstream equipment and improves oil purity. Rapid-discharge taps make water exchange fast and efficient, while its stainless steel design ensures long-term durability. This machine is ideal for olive mills seeking dependable cleaning performance, low maintenance and consistent product quality.

Shipping and Packaging

The B/L 20 is crated securely for transport. Storage should be in a clean, dry environment. Delivery charges apply.


Frequently Asked Questions 

The Barigelli Olive Washing Machine combines water agitation and mechanical separation to remove soil, leaves, twigs, and other contaminants from freshly harvested olives. The system features an integrated foreign body removal device that traps heavier objects such as stones or metal fragments at the base of the wash tank while lighter materials, including leaves and stems, are flushed out through an upper discharge outlet.

Dual rapid-discharge water taps enable quick emptying and replacement of wash water between cycles, preventing contamination buildup. This ensures olives are washed thoroughly while maintaining hygiene standards essential for premium olive oil extraction. The design minimises mechanical stress on the fruit, preserving skin integrity and reducing oxidation risk prior to crushing.
Yes — Barigelli’s washing machines are designed for modular integration into both traditional and automated olive processing systems. The inlet and outlet connections are configured to align with reception hoppers, belt elevators, or leaf removers, allowing continuous fruit flow between washing and crushing stages.

The stainless-steel frame and adjustable legs make it suitable for custom plant layouts, including installations on sloped floors or alongside existing machinery. Operators can choose between batch or continuous washing operation, depending on throughput requirements. For mills expanding production capacity, this modular configuration ensures simple integration without significant line redesign.
Routine maintenance is straightforward and essential for consistent washing quality. After each processing cycle:
  • Drain the water tanks using the built-in rapid-discharge taps.
  • Remove trapped debris from the foreign body collection chamber.
  • Rinse all internal surfaces with clean water to eliminate residue.
  • Periodically inspect seals, gaskets, and moving parts for wear.
The AISI 304 stainless-steel construction is corrosion-resistant and easy to sanitise, meeting food-safety standards for olive oil production. Regular cleaning prevents biofilm or sediment buildup and extends the service life of pumps and valves. Following Barigelli’s recommended maintenance schedule ensures optimal hygiene and consistent washing efficiency throughout the harvest season.

 
Key Features

● AISI 304 stainless-steel construction for corrosion resistance and hygiene
● Integrated foreign body removal system
● Dual wash tubs with rapid-discharge taps
● Efficient centrifugal pump for water circulation
● Easy access for cleaning and maintenance
● Compatible with continuous olive processing lines
● Low water consumption with high washing efficiency
● Handles up to 800 kg of olives per hour
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Olive Oil Extraction: Investing in the Right Equipment for Quality Production

OLIVE OIL PROCESSING

Olive Oil Extraction & Investing in the Right Equipment for Quality Production

For businesses and serious growers considering olive oil extraction, the idea of owning a machine for under $10,000 may seem like an attractive entry point. However, achieving high-quality olive oil requires advanced extraction technology that meets food-grade standards. The extraction process is highly technical, demanding specialised equipment to maintain oil integrity and efficiency. This guide will help you understand the essential components of olive oil processing, the investment required, and the best options for entering the market.

The Technology Behind High-Quality Olive Oil Extraction

Many low-cost machines marketed for oil extraction—often priced around $2,000—are screw presses designed for seed and nut oils. These do not meet the requirements for proper olive oil extraction. Producing premium extra virgin olive oil requires specialised machinery that includes:

  • Crushing Systems – Designed to handle the hard-pitted structure of olives while maintaining a low processing temperature to preserve oil quality.
  • Malaxation Tanks – Controlled mixing at precise temperatures allows natural enzymes to release oil from the olive paste while preventing oxidation.
  • Centrifugal Separation – Essential for separating oil, water, and solids efficiently to ensure high yield and purity.

Without these advanced components, it is impossible to produce high-quality olive oil that meets commercial standards.

Breaking Down the Olive Oil Extraction Process

1. Crushing: The First Step to Extraction

  • Requires high-strength crushers to break down tough olive pits.
  • Must operate at low temperatures to preserve the oil’s sensory and nutritional properties.
  • Ensures paste consistency for effective malaxation.

2. Malaxation: Controlling Time & Temperature

  • A slow, controlled mixing process that activates natural enzymes. 
  • Requires low-velocity mixing with high torque to prevent excess oxygen exposure. 
  • Essential for maximizing oil yield and quality.

3. Centrifugal Separation: The Final Stage

  • Uses a decanter centrifuge to separate oil from water and solids. 
  •  A crucial step for achieving purity and optimal extraction efficiency.

Each of these stages demands industrial-grade technology, making low-cost extraction machines impractical for producing high-quality olive oil.

How to Get Started with Olive Oil Extraction

Option 1: Invest in a Professional-Grade Machine – The Frantoino Olive Oil Press

For those serious about maintaining full control over their production, the Frantoino Olive Oil Press is an excellent entry-level option. With a processing capacity of up to 50kg per hour, it delivers professional-quality results in a compact and efficient design. Owning your own machine ensures complete flexibility and control over your olive oil production.

Option 2: Purchase a Pre-Owned Olive Oil Press

f you’re looking for a cost-effective alternative, buying a used machine can provide savings while still allowing you to own your equipment. Though used machines can be harder to source, platforms such as Olive Machinery list available second-hand units.

Option 3: Use a Commercial Olive Processing Service

For those not ready to invest in machinery, a local processing facility provides access to high-grade extraction equipment without the capital investment. To find a processor near you, use The Olive Centre’s Processor Map.

Conclusion: Finding the Right Solution for Your Scale Of Olive Oil Production

Producing high-quality olive oil requires investment in the right equipment and processes. Whether you choose to own a professional machine like the Frantoino, explore second-hand options, or utilise a local processing service, there are solutions to suit different business needs. For those prioritising full control and flexibility, investing in specialized extraction equipment is the best path forward. However, used equipment and local processors provide accessible alternatives for those looking to test the market before committing to a larger investment.

Starting Out with Olive Oil Extraction: What You Really Need to Know


OLIVE OIL PROCESSING SOLUTIONS

Starting Out with Olive Oil Extraction: What You Really Need to Know

If you are looking for small-scale olive oil processing machines, olive oil processing machine prices, compact olive oil processing equipment for boutique groves, olive oil extraction machines for home use, olive oil press machines in Australia, the best home olive oil presses, and affordable olive oil processing machines for sale - many of which are available through The Olive Centre’s renowned range of processing, milling and extraction solutions.

Thinking about pressing your own olive oil for under $10,000 may seem tempting, especially for hobby growers. But when it comes to creating top-tier olive oil, a simple, budget-friendly machine won’t meet the needs. Producing quality oil requires carefully managed steps and solid equipment. Here's a clear look at how the process works and how beginners can get started without compromising quality.

What Technology Do You Need For Olive Oil Extraction

Some machines, often sold for a few thousand dollars, claim to produce olive oil. But most of these are screw presses, which are more suited for seeds or nuts - not olives. For real olive oil extraction, you’ll need machinery built specifically to crush, knead, and separate the oil from the paste using centrifugal force. This setup ensures a high yield and preserves the oil’s natural flavour and antioxidants.

Getting into the actual steps means dealing with tough-skinned olives that need force to break down. From the initial crush to the slow and steady malaxing process, each part of extraction must be carefully controlled. Especially during malaxation, the paste needs to be stirred slowly and kept at the right temperature to let natural enzymes do their job and without this process the cell wall structure of the olive is not broken down to release the oil. This lets the oil separate cleanly during the separation phase of extraction. Machines under $10,000 typically lack the components and processes required to extract olive oil.  

The Extraction Process: What Every Step Demands

Olive oil extraction calls for power, control, and precision. Here's what’s involved:

  • STEP 1:  Breaking down hard olive pits: Only strong crushers can handle the pressure needed. Without enough power, the crushed paste won’t have the right texture, and the next stage can’t work effectively. This step should also happen at a low temperature to keep the paste’s quality intact.
  • STEP 2:  Malaxing needs specific control: This step isn't just stirring. It has to be slow and carefully timed. Machines must deliver high torque at low speeds to avoid mixing in air, which can ruin flavour. Enzymes inside the paste break open the oil cells, letting droplets rise. Without steady malaxation and heat control, the oil’s character drops.
  • STEP 3:  Separation through centrifugal force: Once malaxing is done, the mixture must be spun at high speed to separate oil, water, and solids. Only well-designed decanters can do this effectively.
All of these parts show why high-quality machinery isn’t cheap. Machines made with stainless steel and food-grade components cost more for a reason - they protect the oil's quality from start to finish.

Three Entry Points for Olive Oil Production

If you're ready to begin, there are three practical routes depending on your budget and goals:

1. Buy Your Own Press - Frantoino Olive Oil Machine If you want full control and plan to press olives regularly, the Frantoino is a strong entry-level choice. It processes up to 50 kg per hour and gives you hands-on management of every step. You get compact, professional-grade results at home, making this machine perfect for small-scale producers who want flexibility and independence.

2. Consider Pre-Owned Equipment - Not everyone wants to invest in a brand-new setup right away. Buying a used press can cut costs without cutting quality - if you find the right machine. While second-hand units aren't always easy to locate, Olive Machinery has a section for used presses that may suit your needs. This option offers ownership without the higher initial spend.

3. Use a Nearby Processing Service - If you don’t want to buy a machine yet, look into local services that let you use commercial-grade equipment without owning it. This gives you access to professional tools without long-term costs. The Olive Centre’s processor map helps you find a service near you. This option is ideal for first-timers or those with smaller harvests.

Final Advice: Picking the Best Start for You

Getting into olive oil production takes careful thought, but there are solid options for newcomers. Whether you want full control, a used machine that is cheaper on the budget, or access to a local press (see map-link below), there’s a solution that can work for your setup.

If control and consistency matter most, owning a machine like the Frantoino puts you in charge. If budget matters more, used equipment or shared services let you start small and grow. The key is to understand what each step requires and match that to the method that fits your goals.

Resources



Process Your Own Olives: Bringing Oliomio Technology to Australian Growers


Olive Oil Processing- OliomioTechnology

Process Your Own Olives: Bringing Oliomio Technology to Australian Growers

For decades, engineers have envisioned a compact, efficient, and hygienic machine capable of producing extra virgin olive oil on-site. That dream is now a reality. Modern technology has made it possible for growers to produce their own extra virgin olive oil using a self-contained, economical system that delivers professional-grade results.

This innovation empowers Australian olive growers to add value to their produce - from picking and processing to bottling - using their own equipment. Beyond personal production, it opens the door for entrepreneurs to establish contract processing businesses, pressing olives for others with ease and precision.

The Evolution of Olive Processing

Centrifugal extraction technology was a revolution in the olive oil industry. It replaced older, labour-intensive systems with continuous-flow designs that offered greater hygiene, improved labour efficiency, and higher capacity. These advances quickly made the traditional hydraulic press obsolete.

In the past, Mediterranean growers would haul heavy sacks of freshly picked olives - often already fermenting - to local mills. There, they would join the community in spreading the crushed paste onto mats and watching as hydraulic presses squeezed out the golden liquid. It was a scene rich with tradition, aroma, and anticipation.

Today, the romance of that process has given way to something far more refined. Continuous-flow extraction plants now accept fruit within 48 hours of harvest to prevent overheating and fermentation. Delivered in ventilated plastic crates, the olives enter stainless steel systems that maintain strict hygiene standards, emerging as pure, high-quality oil. The process may lack the old-world spectacle, but it ensures superior product consistency and safety.

 

Introducing the Oliomio Advantage 

    This video showcases the compact, hygienic, and efficient design that makes Oliomio technology ideal for Australian growers seeking professional results on-site.  
Enter Oliomio - a new generation of small to medium-scale, continuous-flow olive oil extraction machines Oliomio systemsthat bring commercial-grade performance within reach of individual growers. Recognised as a global leader in compact olive oil production, Oliomio combines innovation, quality, and affordability in one sleek unit.

Currently,  hundreds of Australian processors are already achieving outstanding results with Oliomio systems, producing exquisite extra virgin olive oil from their own fruit. True to its name - Oliomio, meaning “My Oil” - this technology gives growers full control over every stage of production, from fruit to finished bottle.

Each Genuine Oliomio machine is backed by excellent technical support  provided by The Olive Centre, the exclusive Australian distributor. The Olive Centre offers on-site installation and comprehensive after-sales care to ensure growers get the best possible results from their investment.

A New Chapter for Australian Olive Growers

The rise of accessible, high-performance extraction equipment marks a turning point for the Australian olive industry. Growers can now operate with greater independence, reduce processing costs, and elevate the quality of their oil - all while maintaining the authenticity and freshness that consumers demand.

As The Olive Centre team notes, this innovation was made possible thanks to the enthusiasm and vision of Australian olive growers themselves. Their commitment to excellence has driven this exciting step forward in local production.

Whether you’re looking to press your own olives or launch a boutique processing service, Oliomio offers a practical, proven pathway to success. For more information and a free information booklet, contact The Olive Centre - and take the first step toward making “My Oil” truly your own.


OliomioProcessing Machines

Frantoino BIO olive oil processor by Oliomio

HYDROLAVA OLIVE WASHING UNIT

MORI-TEM FR.250 Olive Crusher

Oliomio 500 Series with Group Malaxing

Olive Belt Elevator by Oliomio

Speedy SV Oil Filling Machine - 2, 4 & 6 Valve - Sottovuoto – Vacuum Filling by MORI TEM

Other Oliomio Machines

MORI-TEM DMT Series Olive Oil Extraction Decanter Units

Knocker Pump Paste Transfer

MORI-TEM Electrical Installations – Cultivar & Tecnotem Line

See More:   Oliomio Machinery

Barigelli Machinery Installations

OLIVE OIL PROCESSING MACHINERY

Barigelli Machinery Installations - Commercial Production Lines

Barigelli olive oil machinery installations detail the complete journey from fruit preparation to final oil extraction. Each installation shows how individual components-crushers, malaxers, decanters, and clarification systems - work in synchrony to deliver consistent, high-quality olive oil. The following sections summarise each functional stage of the production line, referencing installation examples.


Watch how advanced Barigelli olive oil processing systems operate, showcasing efficient and reliable technology for modern olive oil production.
 

Crushing and Malaxing Units

Barigelli Crusher And Malaxing Unit With Integrated Control Panel

This installation combines olive crushing and paste malaxing in a compact continuous system. The crusher prepares the olive paste uniformly before transfer to the malaxing tanks, where controlled mixing optimises oil separation. Integrated control settings manage paste temperature, timing, and batch flow to maximise extraction efficiency.


Image:  Vertiical Separator with Stand, Malaxing Unit with Crusher, Decanter & Control Panel all connected with raceway.

Barigelli BVD 6-10 Olive Oil Extraction Line with Control Panel

This installation showcases the Barigelli BVD 6-10 olive oil extraction system equipped with an integrated control panel. The setup includes a crusher, malaxing system, and decanter, designed for continuous olive oil processing. The control panel allows operators to manage temperature, timing, and extraction parameters for optimal oil yield and quality.

Barigelli Separator with Fresh Olive Oil Flow

Barigelli stainless steel vertical separator in operation, showcasing freshly extracted olive oil flowing smoothly from the outlet into the collection tank. The design ensures efficient liquid separation of oil while preserving aroma, colour, and quality of extra virgin olive oil.

       Barigelli Decanter Evolution and Mobile Olive Oil Extraction Units

Barigelli’s high-capacity decanter systems designed to separate oil, water, and solids in a single continuous process. The horizontal design ensures high separation efficiency, reduced energy consumption, and easy maintenance access for operators.

Barigelli Early Decanter Models and First Olive Oil Plant

Barigelli’s pioneering olive oil extraction technology - from the early B/D 400 (1995) and B/D 500 (1998) decanters to the B/DF 400H hydraulic version and the first complete olive oil plant (1998). These models mark the foundation of Barigelli’s innovation in continuous olive oil processing systems.

Barigelli Decanter and Mobile Extraction Units (2005 - 2009)

Barigelli’s advanced range of decanters and mobile olive oil extraction units developed between 2005 and 2009. The models include B/DF 125 (2007), B/DF 800H (2005), and B/DF 650 XLH (2009), alongside mobile versions such as the B/DF 125H (2008) and B/DF 400LH (2007). These systems represent a leap in continuous extraction technology, combining high efficiency, portability, and precision oil separation.



Barigelli 4.50 HRY Decanter – High-Capacity Olive Oil Extraction Unit

Barigelli 4.50 HRY decanter, a robust, stainless steel horizontal centrifuge engineered for large-scale olive oil extraction. The machine efficiently separates oil, water, and solids through continuous processing, ensuring maximum recovery and superior oil clarity.

Barigelli 4.50 HRY Olive Oil Extraction Line – Full Processing Installation

Barigelli 4.50 HRY olive oil extraction setup featuring stainless steel decanters, pumps, and separator units. The continuous line integrates crushing, malaxing, decanting, and final clarification, designed for high-capacity and consistent extra virgin olive oil production.

Barigelli CA 5.10 HRY Decanter - Advanced Olive Oil Extraction System

Barigelli CA 5.10 HRY decanter, a high-efficiency centrifuge designed for large-scale olive oil extraction. Built with precision stainless steel, the system separates oil, water, and solids in a continuous process, ensuring maximum yield and superior oil quality.

Multi-Malaxing Tank Bank Installation For Expanded Production

Different malaxing setups can be offered in a linear system, stacked or as a bank setup.

Oil Clarification System

      
       

      Barigelli Olive Oil Processing Installation
                 

 
   
       

      Barigelli Olive Oil Processing Installation on working
                            

Oil clarification are critical steps that can help to maintain the purity, stability, and quality of extra virgin olive oil. Once oil has been separated in the decanter, it still contains microscopic solids, waxes, and water traces. Vertical separators separate unwanted parts to minimise fermentation and cloudiness, ensuring that the oil remains bright, aromatic, and longer-lasting. Barigelli systems feature stainless-steel food-grade modules integrated directly into the processing line, allowing continuous operation without halting production or creating bottlenecks. Their modular construction supports single or multi-stage malaxation.

Barigelli Stainless-Steel Feed Line

Barigelli stainless-steel feed system with inline sight-glass valves and transparent inspection panels. Designed for continuous olive oil feed.

Barigelli Olive Paste Malaxing Tank

 Barigelli Malaxing tank showing olive paste during the malaxation phase. The transparent inspection lid allows operators to monitor flow and sediment removal, ensuring consistent oil purity before final separation.

Barigelli Inline Sight Glass – Continuous Monitoring

Barigelli transparent sight chamber showing paste flow during malaxation. The precision assembly allows real-time visual monitoring of paste flow.

Barigelli Multi-Stage Malaxing Line - Automated Transfer

Barigelli multi tank malaxing facilitating automatic paste transfer with solenoids.

Barigelli Complete Processing and Automation Systems with Mobile Olive Oil Units

Barigelli’s complete olive oil processing lines integrate every stage of production into a single automated system. From olive crushing to oil clarification, each unit ensures precision control, continuous flow, and consistent extraction results tailored to the producer’s scale.

Barigelli CA 510 HRY Decanter with Central Control Cabinet.

A fully installed Barigelli line featuring the CA 510 HRY horizontal decanter and automated control system. This configuration offers real-time process monitoring, stable separation, and high extraction efficiency within a compact plant layout.

Barigelli Mobile Processing Units - Skid and Modular Systems (6–80 m³/h).

A series of mobile Barigelli units designed for flexible deployment in field or facility operations. Available in multiple capacities (6, 25, and 80 m³/h), these compact systems provide full olive oil extraction and clarification capability on-site for portable or remote production environments.

Power and Water Consumption

Type

Decanter Type Working Capacity Installed Power Power Consumption Water Consumption L/hr


Kg/hr kW kW 2 Phase 3 Phase
6 - 10 Junior B/D 300 300/500 22.5 15 0 -
20 - 25 B/D 400 800/1100 50 28 0 160/250
35 - 45 B/D 400L
1400/1800 50 34 0 160/250
50 - 60 B/D 500
2000/2500 75 55 0 200/350
70 - 95 B/D 500L
3000/4000 90 75 0 250/350
115 - 150 B/D 650
6000/7000 140 110 0 500/700
150 - 200 B/D 650L
7000/9000 170 125 0 700/900







Each Barigelli installation demonstrates efficient integration of key processing stages—crushing, malaxing, decanting, clarification, and control - within a single automated framework. The result is precise, continuous olive oil production tailored to modern operational standards. These installations reflect the reliability and scalability essential for both boutique and industrial olive oil processors.

Videos

Global Olive Oil Prices Soar to Record Highs in 2023 Amid Spain’s Severe Drought Crisis

MARKET INSIGHT: GLOBAL OLIVE OIL ECONOMY 2023

Global Olive Oil Prices Soar to Record Highs in 2023 Amid Spain’s Severe Drought Crisis

Introduction

The global olive oil industry in 2023 has entered uncharted territory, experiencing an extraordinary surge in olive oil prices driven by a combination of climatic and economic forces. At the centre of this crisis lies Spain’s devastating drought, which has crippled the world’s largest olive oil producer. This severe shortage has led to a dramatic contraction in olive oil supply, triggering price escalation and a corresponding decline in consumer demand. The ripple effects are being felt worldwide, reshaping the balance between producers and consumers alike. Meanwhile, Australian olive oil producers find themselves in a rare position of advantage, benefitting from unprecedented market highs. This article explores the causes, consequences, historical trends, and economic signals surrounding this remarkable global olive oil price spike.


The Spanish Drought and Its Impact on Supply

The ongoing drought across Spain stands as the principal factor behind the current olive oil price surge. As one of the largest olive oil-producing nations globally, Spain’s drastically reduced harvest - caused by months of extreme heat and minimal rainfall - has sharply curtailed olive oil availability in both European and international markets. This has intensified supply shortages, compelling consumers to pay more for what has long been a staple Mediterranean product. The interplay of limited supply and escalating demand has magnified price volatility, reinforcing the classic supply-and-demand imbalance now driving global markets.

Decline in Consumer Demand

As prices have risen steeply, the shortage of olive oil has led to a noticeable decline in consumption, particularly in Spain, where demand has reportedly dropped by around 35%. Consumers are now scaling back their purchases, finding olive oil increasingly unaffordable compared to other cooking oils. The once-steady household consumption patterns are shifting as people seek alternatives or modify their cooking habits. This contraction in domestic demand not only highlights the growing accessibility gap for consumers but also underscores the broader economic strain caused by high inflation and food price increases.

Australian Olive Oil Producers Reap the Rewards

Amid the turmoil, Australian olive oil producers are experiencing a windfall. Thanks to limited global supply, Australian growers are commanding record prices exceeding AUD $8 per litre, marking the highest levels ever recorded in the nation’s olive oil industry. This lucrative period presents a rare opportunity for Australian exporters, with demand from Europe - including Spain itself - now turning toward Australian supplies. For producers Down Under, this unique reversal of roles underscores how regional climate resilience and diversified production can translate into significant financial gains when global shortages arise.

Historical Context: How the Market Reached 2023

The olive oil market’s volatility is not a new phenomenon. Previous spikes occurred in 1996, 2006, and 2015, each triggered by weather-related supply constraints. Yet, the 2023 price explosion stands out as the most dramatic in recorded history -over 40% higher than any previous price peak, and roughly double the magnitude of earlier surges. This extreme escalation reflects not just climatic hardship but a clear pricing bubble forming within the market, echoing the cyclical nature of commodity pricing.

Cyclical Trends and Economic Correlations

The olive oil sector has long followed cyclical pricing patterns, typically alternating between low and high price phases roughly every decade. The current surge aligns almost perfectly with the predicted start of another 10-year cycle, occurring just three years into its anticipated timeline. Furthermore, a notable correlation has been identified between the Australian Food Inflation Index and the Global Olive Oil Price Index as reported by the International Monetary Fund (IMF). This connection illustrates the deep interdependence between food commodity pricing and global economic conditions.

While the IMF’s benchmark prices are denominated in USD, for the purposes of this analysis they have been converted to AUD to track the trend relative to Australian markets. These benchmark indicators -based on the world’s largest olive oil exporters -serve as a reliable gauge of overall market direction, confirming how global shortages and inflationary pressures move in tandem.

   Global olive oil prices show a recurring 10-year cycle, driven by droughts, crop shortages, and rising production costs

Technical Indicators: Signals of an Overbought Market

From a technical analysis perspective, the Relative Strength Indicator (RSI) is often used to measure price momentum and potential overextension in markets. On recent olive oil price charts, the RSI (represented in purple) indicates that prices have once again entered overbought territory - a level seen during previous speculative phases. Historically, such readings have preceded market corrections or reversals, suggesting that the current surge may not be sustainable in the long term.

Analysts caution that as the European olive harvest begins in September and October 2023, an influx of new oil supplies could help ease prices, though the timing and extent of this correction remain uncertain. Until then, speculative trading and limited inventory continue to support inflated market values.

Conclusion

The record-breaking olive oil prices of 2023, primarily triggered by Spain’s drought-induced production collapse, mark a turning point for the global olive oil economy. With consumer demand declining under the pressure of soaring prices and Australian producers thriving amid the scarcity, the industry is experiencing a dramatic rebalancing. Historical precedents, cyclical trends, and market indicators all point toward a complex, transitional period defined by volatility and uncertainty.

As the world’s producers, traders, and consumers adapt to these new market dynamics, one truth remains clear: olive oil - celebrated for its taste, health benefits, and cultural significance - continues to be at the mercy of both climate change and economic cycles. Stakeholders across the value chain must remain alert, flexible, and forward-thinking as the olive oil market navigates this extraordinary phase of transformation.

Other Sources