KEY POINTS:
A bumper year for New Zealand olive oil has some in the industry predicting it will follow wine as one of our most promising exports.
Just three decades after the first commercial groves were planted, producers are celebrating high yields, world titles and new markets.
They say the delicate condiment is tracing the footsteps of the country's most successful sauvignon blanc and pinot noir labels.
Jim Syme, president of Olives New Zealand, expects local olive growers will produce around 220,000 litres of olive oil this year, up from 185,000 litres in 2007.
The organisation already has 400 growers on its database. Around 10 per cent of the total yield is exported, mainly to the United Kingdom, Canada and the United States.
Syme says fresh planting over the past few years should see volumes rising, a greater percentage exported, and greater international recognition.
And he predicts the increasing affluence of Asian countries, coupled with a mounting global awareness of the health benefits of olive oil, will further boost New Zealand producers' sales.
"A typical New Zealander probably hasn't been embracing olive oil anywhere near to the extent that Europeans do, but as they learn about its quality and health benefits, hopefully they will see locally produced extra virgin as very much superior to the cheap imports," he says.
Waiheke grower Margaret Edwards, leader of the Olives New Zealand tasting panel, says that while locally produced oil is not cheap, it matches prices for top-quality overseas oils.
The future of the industry depends on maintaining excellent standards, she says.
"The world is awash with cheap olive oil and there's no use entering that market. We need to follow the wine industry in terms of high quality and high price."
The New Zealand industry will always be small - there simply isn't enough land to mirror Spain or Australia, she says.
"We can't ever compete with that and nor should we because we have some unique flavour qualities and some unique profiles in our oils, and that's what we should be aiming to put into the world market."
One of the first producers in the North Island, Rangihoua Estate, has already met with considerable success.
Owners Anne and Colin Sayles brought home two golds, two silvers and a best of class award from a Los Angeles international olive competition, held last month.
Anne says the grove's success comes down to perfection, cleanliness and care from picking the fruit through to bottling the oil.
The Sayles began pressing Stoneyridge Estate's olives in 1997. They now have 1000 trees of their own and manage a further 2200 trees from private groves across the island.
This year Rangihoua produced 6000 litres of oil - almost double the amount of the year before.
A quarter of their total yield will be sent to Japan and 5 per cent to Canada.
"The Japanese are very health-conscious and they are into anything pure and good for them - even though it is traditionally not part of their diet," Sayles says.
The industry has become so trendy, even media celebrities such as Paul Holmes have decided they want a piece of the action.
Holmes has just launched his eponymous oil in China, and has also won over some of Ireland's top chefs.
While exporting to Europe might seem like "sending ice to the eskimos", he notes that the European palette is at least familiar with olive oil. The Chinese, on the other hand, are new to the condiment and tend to raise their eyebrows at the price.
"Some days I wake up and I think `what am I doing?' but I'm determined to carry on."
Edwards says that while it's an exciting time for the industry, newcomers will have to be innovative.
Olive-friendly regions are generally wine-growing regions and land prices reflect the competition for space.
"If someone's starting up now it would probably be good for them to look around and see who else was processing and form liaisons rather than duplicating costly things like buying a press and making a label."
Innovative export label iLove is an example of small extra virgin olive oil producers banding together.
Helen Meehan, an olive grower from the Wairarapa, is one of 30 producers supplying oil for the export label.
She and her husband have 12,000 trees and produce a domestic label, but made the decision not to export as their size could never justify the cost.
iLove, launched in February last year, blends top-quality oils from groves in the Wairarapa, Horowhenua and Hawke's Bay and ships the product to Vancouver, Toronto and Montreal.
"Little groves like us wouldn't do it otherwise. Exporting is an expensive business and this is the good old Kiwi `can do' attitude," Meehan says.
The group decided to target Canada because it is similar to New Zealand, yet does not produce its own olive oil. Sales have been steady and the United States is next on the list.
New Zealand has a competitive advantage because, being six months ahead of northern hemisphere producers, it can have fresh oil on the table for Christmas.
And consumers enjoy the unique flavour of New Zealand oils - "a grassy, fruity, herby taste", much like a sauvignon blanc, she says.
Syme is certainly excited about the future. "We're confident that our highly competent and enthusiastic growers are going to create an economically sustainable industry, and great progress is being made."
