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Paarl — South African olive oil producers must sharpen their focus on quality, freshness, and provenance to survive a sharp downturn in international prices that is bringing cheaper imported oils back onto local shelves, the chairperson of the SA Olive Association has warned.
Speaking at the 2026 SA Olive Awards in Paarl on 15 September, Richard Allen said the global olive oil market has been transformed by the recovery in world supplies following the severe shortages of 2022 to 2024. Figures from the International Olive Council show that global production fell from roughly 2.76 million tons in the 2022/23 crop year to about 2.59 million tons in 2023/24, before rebounding to a record 3.57 million tons in 2024/25. The 2025/26 crop is estimated at around 3.44 million tons, down only 4% year-on-year.
The supply rebound has crushed producer prices. In Spain, the international benchmark, producer prices now stand at around €4.1/kg (approximately R76.5/kg), compared with roughly €9/kg (R168/kg) in January and February 2024. In South Africa, import parity has slipped to around R75 per litre, and Allen said imported brands had returned to the local market at highly competitive prices.
'For consumers, that's a welcome relief,' Allen noted, adding that improved affordability has already supported a recovery in international consumption. For South African growers, however, the new price environment poses a serious challenge, particularly for smaller operators who cannot match imported oils on cost.
Allen cautioned producers against hoping for another international supply shock to drive prices back up. Import parity, he suggested, could trade in a band of roughly R70 to R100 per litre, meaning local producers need to design their operations to remain viable at those levels. This will require tighter efficiency across the entire chain, from orchard management through harvesting to processing.
'South Africa cannot compete with the huge volumes produced in Europe, nor should it try,' Allen said. 'What we can do, and what we already do, is win on the things that volume can't buy: quality, freshness, and provenance.'
The 2026 SA Olive Awards underscored the strength of that proposition. A total of 96 South African extra virgin olive oils received medals, comprising 33 gold, 59 silver, and four bronze awards. De Rustica Olive Estate led the field with five gold medals, while Lions Creek Olive Estate, Morgenster, and Willow Creek each collected three. Andante, Babylonstoren, Mardouw, Tokara, and Vyversrus Farms each won two golds.
Single gold medals were also awarded to oils from Brown Badger, Darling Olives, Het Vlock Casteel, Kielder South Africa, Kleinbergskloof, Pètra Olives, Greenleaf Olive Company, Slo Harvest, and Terre Paisible.
Allen said the breadth of the winners was significant, demonstrating that South Africa's reputation for high-quality olive oil rests on a broad base rather than a handful of producers. 'The quality bar across the entire industry is high,' he noted. 'The challenge now is to combine that quality with efficient, well-run orchards capable of remaining profitable in a much more competitive international market.'
The event also recognised individual contributions to the South African olive sector. Denise Bergman of Het Vlock Casteel in Riebeek Kasteel was named the 2026 Agri-worker of the Year for her expertise and dedication. The Lifetime Achievement Award was presented to John Scrimgeour, who spent 24 years as farm manager at Buffet Olives, served as chairperson of SA Olive from 2002 to 2005, and has been a member of the organisation's technical committee since 1996. He remains an honorary member of SA Olive and continues to mentor both established and emerging olive farmers.
Source: Farmer's Weekly SA