The sale follows renewed interest in olive groves nationally as production climbs to record levels in what is a small cropping industry.
The property on Burns Road in the rural town of Coonalpyn, south-east of Adelaide, has 119,000 olive trees offering six varieties as well as water licences for 1523 megalitres. A portion of the land was not able to be developed and is protected by a native vegetation heritage agreement
It was originally part of a scheme where buyers could buy units in an investment plantation. The units were consolidated and sold off in one line.
The sale was negotiated by Knight Frank’s Garry Partington, who said the price was in line with the valuation.
“We had strong interest from a large number of parties in what is reportedly a tough market, which was refreshing,” Mr Partington said. “A lot of the enquiries were interstate and overseas investors, including the successful purchaser.
“We have a lot of active buyers who clearly see an upside in Australian agriculture.”
Mr Partington said the olive grove market had been under pressure for a number of years with properties on the market now valued at below cost.
According to the Australian Olive Association, Australian Table olive growers are generally small boutique producers generating around 4000 tonne of product each year worth around $12 million.
Australians are relatively large consumers of olives and olive oil for a non-Mediterranean country, but the majority purchase cheaper overseas products swayed by those labelled as “extra virgin olive oil”.
“Many of these products are not actually extra virgin,” said Mr Partington. He said a national standard for olive oil labelling would improve the sales of local olive oil.
thelandA 965-hectare olive grove in South Australia has been sold to an overseas investor with NSW business interests for $1.65 million,