Olives touted as part of cure for local recession

By TONI SCOTT - Staff Writer, Chico Enterprise Record

CHICO, California, USA-- Although the rest of the economy may be in the pits, one local agriculture industry is boasting tremendous growth, with olive growers and olive oil producers expecting continued success in otherwise tumultuous economic times.
Though the 450 attendees of the 10th annual Tri-County Economic Forecast Conference were warned that the dire effects of the recession may still be felt for months to come, local olive production was highlighted Thursday morning as a catalyst that could help the North State back on its feet.
Gregg Kelley, president and CEO of California Olive Ranch, Jamie Johansson, owner and farmer of Lodestar Farms and Pat Campbell, vice president of operations for Bell Carter Foods, all said when it comes to the growth of the global olive market, Butte, Glenn and Tehama counties are at the forefront.
"We are the fastest growing olive oil market in the world," Kelley said.
California Olive Ranch, which is based in Oroville with a milling facility in Artois, is America's largest olive oil producer and is only expected to grow in the upcoming years.
Though the company was founded in 1998 with only about 500 acres of olives, less than 15 years later they now boast approximately 10,000 acres of olives and own what Kelley said is the "most technologically advanced" olive processing plant in the world.
Additionally, Kelley said industry experts foresee a "very rapid" market growth for olive oil, with a predicted 80 percent growth rate each year over the next five years.
Kelley attributed this, in large part, to the advances local olive oil farmers have made, saying domestic innovations have surpassed those in Spain and Italy.
Both European countries are international leaders in olive oil production, though on American soil, olive growers are able to produce more olives per acre than their international competitors and can mechanically harvest the olives, rather than have them hand-picked.
The European Union is also phasing out olive subsidies, giving companies like California Olive Ranch more of a competitive edge in the global market.
Locally, Kelly said that translates into more employment opportunities in the company that currently employs about 400 Tri-County residents and whose annual expenditures exceed $110 million a year.
Kelley also said the olive oil industry is primed to help other sectors achieve success, noting that as olive oil production expands, there is a greater need for innovation in milling, processing and harvesting equipment.
But while the growth of olive oil may be sparked by innovation, Johansson said its continued success relies almost equally on experience.
Johansson's ranch in the Oroville foothills was started in 1993, with olive varieties grown in southern Butte County for more than a hundred years.
Johansson said that as olive oil production grows, so too will the consumer's demand for a meaningful experience with the commodity.
He likened the olive oil industry to Seattle's Pike Place Market, noting that although there are several fish markets, the market where employees throw their fish down a line and engage the crowd is the most profitable venture.
"Because it's experience driven, they can charge more and still outsell their competitors. And they all have the same supplier," Johansson said.
Capitalizing on this need for a "unique experience" and "personal connection" Johansson said the local olive oil industry needs to focus on agri-tourism, a movement that will in turn, expand other local agriculture and tourism-based businesses.
Alongside the nation's top olive oil producers, the Tri-County area is also home to the No. 1 producer of black ripe table olives, with Bell-Carter Foods in Corning also confident about its future.
Although weather and a lack of water has reduced table olive yields in recent years, Campbell said the Tehama County-based company is still thriving and is continuing to expand its position in the global olive market.
Though countless other businesses are struggling, Campbell said Bell-Carter is steadily progressing and plans to release two new products, including small olive "snacker" cans and plastic containers of olives that come with resealable lids.
"We think its a really great time to be in the table olive industry," Campbell said.
And ultimately, John Chiang, state controller, said businesses like Bell Carter, Lodestar Farms and California Olive Ranch will be the ones to help lift the state out of economic trouble.
When asked about the type of industries that can help the economy grow, Chiang noted agriculture would be one of the state's saviors.
"Those opportunities exist," Chiang said, referring to the growth of the agriculture industry. "We have terrific products."
 

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