Cobram Estate Olives Limited completed its 2022 Australian olive harvest this week. Yielding 9.5 million litres of olive oil, the 2022 Australian crop exceeded the Company's internal budget by approximately 15% and is 53% higher than the previous lower-yielding crop year in 2020 (2020: 6.2 million litres). The increase in output reflects the combined effect of an increase in olive oil yield as the groves continue to mature; improved management practices; and a mostly favourable
growing season. The additional profit generated by the larger than expected 2022 Australian olive oil crop is likely to offset cost pressures being experienced across the group, particularly in the USA. Independent evaluations of baseline carbon position across entire Australian operations confirm that not only the Company is neutral in terms of carbon emissions but also is able to remove approximately 4kg of CO2 for every litre of oil produced and sold. The 2022 harvest of 9.5 million litres of olive oil was a strong improvement on the previous lower-yielding year in 2020 (2020: 6.2 million litres) and exceeded the Company's budget by approximately 15%. The substantial increase in yield versus 2020 (our last lower-yielding crop year) reflects several factors including: The age profile of the Company's Australian olive groves, with the groves increasing yield as they progress towards maturity; The Company's program of continual improvement in both olive growing and milling driving higher average yields of its mature orchards across all three farms; The favourable growing conditions experienced during the season; and The positive impact of the Company's investment in risk mitigants, including the significant investment in frost fans in recent years.