OLINT 7

Editorial

Industry Taking Root

(IMG1)The olive industry in California continues to grow at a tremendous pace. The ideal growing conditions in our state, coupled with the growing demand in the U.S. for both high-quality extra virgin olive oil and locally produced products means that California olive oil is thriving and the future for this product is exceptional. However, in the midst of this growth and demand come challenges. We were hoping that by now the USDA would have determined its standards for olive oil labeling. This essential regulation would bring our country in line with others. The process, which began in 2004, continues. Recently the USDA released a version of the ruling for public comment. On page 31, we provide you with the web site address where you can view the standards in their current form. We encourage you to do so. The delays from Washington have been balanced with progress in Sacramento. The California Legislature is embracing the need to change the existing definition of extra virgin olive oil. The bill, SB–634, establishes standards in our state consistent with the IOC (International Olive Council). This welcome regulation passed the State Senate unanimously and awaits the Governor’s signature. While only enforceable in California, given the dominance our state has in the U.S. market, it will impact the entire country. We urge you show your support for this bill by writing to the key sponsor, Senator Patricia Wiggins, 2nd District, at the address on page 32. Another example of the industry’s growth and establishment of infrastructure is the recent opening of the UC Davis Olive Center at the Robert Mondavi Institute. This world-renowned University has a long history of research and development in the field of olives and is adding their know-how and reputation to our expanding olive oil market. Such is the importance of this crop to our state that next to the grape, the olive is the second crop for which UC Davis has established a research entity at the campus. We enthusiastically welcome their participation. In this issue, we interview Dan Flynn, the Executive Director of the Olive Center, to learn more about the Center’s plans. We hope you enjoy the articles in this expanded issue (32 pages!). As always, we welcome your input, suggestions and comments.

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OLINT 6

Editorial

CALIFORNIA AND THE TIPPING POINT

(IMG1) Malcolm Gladwell in his book, The Tipping Point, comments that several little things can make a big difference: The tipping point is that magic moment when something crosses a threshold, tips and spreads like wildfire. Regarding the super high-density orchard system (SHD) and the growth of the California olive oil industry, we believe we are at that tipping point.
The following trends continue unabated from last year: The demand for olive oil is growing at 20 percent annually in the U.S.; production and infrastructure problems persist in Europe leaving a gap between production and demand. In the meantime, local growers and producers enter the breach with several developments that bode well for the industry in the US.
There are now three large-volume mills in California offering growers more opportunity for long-term contracts with a mill closest to their orchards. Olive oil producers therefore have more opportunity to offer fresh extra-virgin olive oil, and catch up with demand.
We are seeing more large-scale plantings take place that will put California on target to surpass France’s production by 2008. Production is estimated to be one million gallons of olive oil by 2010. We are even seeing SHD plantings and production of olive oil outside of California. Texas entered the fray this year with its first mechanical harvest of an SHD orchard. These are exciting times.
Adding teeth to this expansion is the possibility of a USDA ruling, by the end of this year, regarding a revision to U.S. standards for grades of olive oil. Something that has not taken place since 1948. The California Olive Oil Council petitioned the USDA in 2004 for new standards that would conform more to internationally accepted ones. Currently, the U.S. is being used as a dumping ground for some imported mislabeled and adulterated olive oil. It is time to level the playing field.
The subject of authentication and adulteration took on added weight and increased the awareness of this problem, when a recent article entitled Slippery Business was published in the New Yorker Magazine in August. The article highlighted some unscrupulous olive oil producers in the European Union and their efforts to cheat consumers. National Public Radio took up the debate as well.
So we think that the confluence of all these events puts our industry at a threshold, Gladwell’s tipping point. In our current issue we have an interview with Professor Angelo Godini of Bari University, Italy. In it, Dr. Godini expresses a European concern regarding California’s potential to dominate the olive sector: “I hope that the United States will not do the same in the olive sector as they did in the last forty years with the almond sector and in the last few in the pistachio industry.” Our sentiments could not be more opposite: we hope and think it will. We anticipate even more good news in the coming year.

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