• Preparations underway for 2025 olive harvest, expected yield 750,000-825,000 litres
• Weather conditions generally good, with no major rain since November 2024
• International bulk olive oil prices have softened, but retail prices remain stable

Australian Agricultural Projects Ltd (ASX: AAP) has provided its quarterly update for the period ended 31 March 2025. The company reports that preparations are nearing completion for the 2025 olive harvest, which is expected to commence early next week. Management's expectations remain unchanged, with the 2025 yield forecast to be in the region of 750,000 to 825,000 litres. Weather conditions at the orchard have generally been very good, although there has been no meaningful rain event since early November 2024. The orchard has remained fully irrigated, and the supply of water from the irrigation system remains plentiful. The company notes that international bulk olive oil prices have softened since the completion of the 2024/5 European harvest, but there is little evidence that this reduction in bulk prices has impacted the shelf price of retail extra virgin olive oil in Australian supermarkets, which is the benchmark for the farm gate pricing formula the company enjoys through the olive oil supply agreement with Cobram Estate Limited. The company will continue to monitor this situation. The lease interests the Growers have in the projects the company administers expire on 30 June 2025, and the Growers have an option to extend their leases for a further 25 years. The Grower responses received to date are in line with the expectations of management, and every effort is being made to ensure that all Growers provide a response. The company's expectation is that Growers in the first project will not extend their option, and the company will acquire their residual interests in their irrigation equipment, which will be funded from operating cashflows. It is expected that Growers in the second project will extend their leases for a further term. The outcome of this restructure will have minimal impact on the short-term earnings of the company.