Sebastian Calderon, Murray Pioneer

Members of the Riverland’s wine grape growing community last week gathered to discuss the potential economic viability of olive crops in the region.

Local growers and industry representatives gathered at the Riverland Olive Industry Transition Workshop, held last Wednesday at the Berri Hotel and hosted by CCW, to explore the potential for olive cultivation across the region.

The event formed part of CCW’s Transforming the Riverland Project, which aims to help growers adapt to current wine grape oversupply, softening demand and declining returns by identifying high-value, lower-risk crops suited to Riverland conditions.

Sanoop Varughese, transformation and innovation officer at CCW, said the olive sector presents a unique opportunity for growers ready to diversify and future-proof their operations.

“Many Riverland grape growers are facing significant challenges with declining returns and excess fruit in the market,” he said.

“Olives offer something very different — mechanisation, lower water use, and a clear market gap.

“Australia currently imports about 70 per cent of its olive oil, so we’re talking about meeting existing demand, rather than creating new markets.”

Mr Varughese said water requirements for olives aligned with the Riverland’s irrigation capacity.

“Establishing orchards typically requires 2.5 to 5ML/ha annually, increasing to 5 to 9.5ML/ha once trees mature, slightly below that of grapevines,” he said.

“Irrigation is crucial from December to February during fruit development, while the region’s warm Mediterranean climate, moderate winters, and saline-tolerant soils make it particularly suitable for olive growing.”

The newly released olive conversion fact sheet, developed by CCW, provides detailed insights for growers considering the switch.

It recommends deep ripping to 40–60cm, adding 10 tonnes of organic matter per hectare before planting, and adjusting vineyard row spacing from 3.35m, to between 3.6 and 5m, to accommodate olive harvesters.

Establishment costs vary from $13,000 to $48,000 per hectare, depending on the production system, and if the kind is traditional, high-density, or super high-density.

“Our modelling shows that by year six, hedge-row systems can deliver yields up to 18 tonnes per hectare,” Mr Varughese said.

“When combined with full mechanisation, mature orchards can return profits between $76,000 and $121,000 per year on a 10-hectare model.

“Those numbers are prompting serious conversations among growers who have struggled through several tough vintages.”

Olive farming also offers ongoing operational advantages.

Once mature, trees require minimal pruning and just 20 labour hours per hectare annually, far less than vineyard management.

The potential to integrate with existing infrastructure — such as irrigation systems, fencing, and equipment — further improves the financial case for conversion.

However, Mr Varughese warned that success depends on infrastructure and processing capacity.

“The opportunity is there, but we need to get the processing right,” he said.

“We’re developing a 1000-tonne demonstration facility to prove the concept, but long-term success will depend on scaling that up to 10,000 or even 20,000 tonnes.

“That requires co-ordinated investment between growers and processors.”

Attendees at the Berri session also heard about the varietal options most suited to the Riverland, including arbequina, arbosana, koroneiki and FS17, which have proven high-yield and oil-quality performance in similar climates.

Risks such as frost damage, biennial bearing, and processing delays were discussed, but new technology and harvesting systems are helping to mitigate many of these concerns.

The event highlighted that olives are not a simple replacement for grapes but rather a complementary crop for diversification.

“In the next five-to-10 years, we see olives becoming a key part of the Riverland’s agricultural identity,” Mr Varughese said.

“This isn’t about walking away from wine — it’s about strengthening the region’s economy by adding another premium product to our portfolio.”

With further demonstration trials and grower field days planned, CCW says the olive transition is gaining momentum, positioning the Riverland as a potential national leader in the emerging sector.

This article appeared in Murray Pioneer, 12 November 2025.