Australian Agricultural Projects Limited has completed its 2025 olive oil harvest, producing a record 752,600 litres with improved oil quality, despite weather challenges.
- 2025 olive oil production reached 752,600 litres, up from 551,500 litres in 2024
- Harvest aligns with management’s expectations for an 'on-year' in the biennial cycle
- Frost event in September 2024 impacted production but did not derail results
- Initial tests show improved extra virgin olive oil quality with less volume failing standards
- Oil to be sold under supply agreement to Cobram Estate Limited supporting major retail brands
Record Harvest Despite Weather Challenges
Australian Agricultural Projects Limited (ASX – AAP) has announced the completion of its 2025 olive oil harvest, reporting a total production of 752,600 litres. This marks a significant increase from the 551,500 litres produced in 2024 and is consistent with the company’s expectations for an “on-year” in its biennial production cycle. The harvest volume is comparable to the previous on-year in 2023, demonstrating resilience despite a frost event in September 2024 that impacted overall output.
Quality Improvements Highlighted
Initial testing of the 2025 harvest indicates a notable improvement in the quality of the olive oil produced. The volume of oil failing to meet the extra virgin olive oil (EVOO) standard has been significantly reduced compared to last year. While final quality test results are still pending, this early indication bodes well for the value of the harvest. The company anticipates this could be its most valuable harvest to date, supported by strong market prices for locally produced EVOO.
Strategic Supply Agreement Supports Market Presence
Australian Agricultural Projects will continue to supply its extra virgin olive oil to Cobram Estate Limited (ASX – CBO) under an existing supply agreement. This partnership supports the Redisland and Cobram Estate retail brands, which are among the leading olive oil brands in Australian supermarkets. Any oil not meeting EVOO standards will be marketed separately, ensuring all production is monetized effectively.
Operational Excellence Amid Extended Harvest
The company acknowledged the dedication of its operations team, who managed an extended harvest period to deliver these results. The three projects contributing to the harvest; VOOP I, VOOP II, and Peppercorn; continue to be the backbone of production, with planted areas of 285, 118, and 108 hectares respectively.
Looking Ahead
With the final quality assessments forthcoming and market prices remaining strong, Australian Agricultural Projects is well positioned to capitalise on this record harvest. Investors will be watching closely for updates on sales volumes and pricing as the company moves to finalise its commercial outcomes for 2025.
Bottom Line?
The 2025 harvest sets a new benchmark, but final quality results will determine the true market impact.
Questions in the middle?
- How will the final quality test results affect the volume of extra virgin olive oil sold?
- What financial impact did the September 2024 frost event have on production costs and revenues?
- Will the company consider expanding planted areas or adjusting its biennial cycle strategy following this record harvest?