Cobram Estate expands in the United States

Olive grower and oil manufacturer Cobram Estate Olives has announced the 2024 Californian harvest led to the production of 3.0 million litres of olive oil, the result of what the industry calls an ‘off year’.

Production was 6.4 percent lower than 2023, but 77.1 percent higher than 2022, the previous ‘off’ year, illustrating the company’s rapid growth in the US.

Cobram Estate told investors: “This growth in production comparing to the last off year is driven by the larger area under supply contract from third party olive growers and the maturing profile of our groves in California.

“The production from our own groves was in line with expectations and represented 23 percent of the total oil this year in comparison with 11 percent in 2023.”

Only 11 percent of CBO’s USA groves are mature, 30 percent are immature, and 59 percent are yet to come into production.

“Milling extraction efficiencies and extra virgin olive oil quality were excellent, delivering above average results on both parameters”

The company has taken a scientific approach to growing olives and producing a high, quality oil yield which it has transferred to the US – a focus on technology has seen it dominate the Australian market with its Cobram Estate and Red Island brands.

In the US the company has completed the development of phase 2 of its Esparto South Ranch and phase 3 of the Dunnigan Hills Ranch with 164 hectares of olives planted in November 2024, adding to the 460 hectares planted in the previous phases of those Ranches, and increasing the total company grove area to 916 hectares.

The company is also in the process of purchasing 1,534 hectares of land, within close proximity of its existing Californian groves – this will support another 1,065 hectares of plantable grove area.

“This will enable CBO to fast track the planned development of company owned olive groves, increasing olive oil supply over the medium term.

“The acquisition is being funded partially by the company’s free cashflow and partially by debt.”

Cobram said that sales in both Australia and USA were performing strongly with packaged goods sales well ahead of both budget and the prior corresponding period for the five months to 30 November 2024.

‘As we have previously announced, the company implemented a 15 percent price rise in the USA across its packaged goods range in September 2024.

“Pleasingly, sales continue to perform strongly with growth in branded sales in both value and units seen in the period since this price rise.”

Picture: Cobram Estate Olives