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Olive oil in the north state is a growing industry, and with Italian oil reeling from a labeling scandal, recent legislation on testing California oils may lead to local companies grabbing more of the market.

Seven Italian olive oil companies are under investigation for improper labeling of olive oil. The Italian farm lobby Coldretti said, “the fraud was often perpetrated by adding imported olive oil to domestic,” according to the Associated Press.

The seven companies being investigated are Bertolli, Sasso, Carapelli, Coricelli, Santa Sabina, Prima Donna and Antica Badia.

A bad harvest in 2014 and the fraud investigation in the Italian industry has opened the door for American olive oil companies to showcase their products, and many say the regulations recently put in place by the California olive oil industry and state legislators makes for a higher quality product.

As of 2014, olive oil producers in California that make more than 5,000 gallons of oil each year are required by the Olive Oil Commission of California to:

• Have a designated number of samples collected by the state Department of Food and Agriculture.

• Have samples sent to a third-party laboratory in Australia for sensory and chemical analysis.

• Have remaining lots of oil tested by a private lab.

• Have the verified grade reflected on their labels.

Oil producers outside California have no such requirements, which is one reason why imported oils tend to cost less.

According to the U.S. Department of Agriculture, extra-virgin olive oil has “excellent flavor and odor (median of defects equal to zero and median of fruitiness greater than zero) and a free fatty acid content, expressed as oleic acid, of not more than 0.8 grams per 100 grams,” while virgin-grade oil has “reasonably good flavor and odor (median of defects between zero and 2.5 and median of fruitiness greater than zero) and a free fatty acid content, expressed as oleic acid, of not more than 2.0 grams per 100 grams.”

Calling lower grade extra-virgin is misleading for consumers who see lower prices for imported oils that say they are extra-virgin, and then wonder why American oils are more expensive without realizing the domestic oils are usually a higher-grade food product.

That can be a problem for California olive oil manufacturers who spend the extra money to ensure their olives are free of defects like fermentation, which can happen with improper storage or harvesting.

Many olive oil producers in California that don’t produce 5,000 gallons a year voluntarily have their oil tested by the California Olive Oil Council, a trade association that certifies oil as extra virgin.

Much of the oil under investigation in Italy hasn’t met the same requirements the California olive oil industry has for oils produced in the Golden State.

In November, customs officials in the European country independently verified the results of the magazine “Il Test” which found nine out of 20 bottles it tested were not extra-virgin as labeled, according to the Associated Press.

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