High quality, non-GMO and organic oils are in high demand right now.
If you use natural or specialty oils as a bulk ingredient in your manufacturing, you already are well aware. You may even be feeling the market pressure. Perhaps, even, you've wondered what other non-gmo or organic bulk oils you could be using as an alternative.
Today we're going to focus on price-- always the giant elephant in the room. Here's how the pricing of some of the most common healthy, non-GMO or organic oils compares: Extra Virgin vs. Safflower & Sunflower Oil (see graph with actual prices below).
How you make the choice as to which bulk oil is right for your next food product isn't always just about flavor, color or health properties. There's a more functional, business aspect at play here-- that's right, money, money, money, money, mon-aay!
The price of ingredients is always a vital component in your final decision. For example, everyone has had that hesitation at the checkout of Coldstone-- do I really need this $7.00 ice cream? Perhaps I should have just opted for the carton at home... Price is, of course, just vital to your business decisions too.
In an effort to prevent any buyers remorse, we're giving you all information, upfront to do a real price comparison.
The Comparison of Industry Standard Non-GMO Oils
As the non-GMO movement picks up speed and many large manufacturers jump on the bandwagon, it's important to distinguish which oils are non-GMO as the most common industry standard. For example, the industry standard for Extra Virgin Olive Oil is that it is a non-GMO oil. Sunflower and Safflower Oil are the same.
This is in contrast to other oils like canola and soybean, that have an industry standard of a GMO oil.
Here's a chart to help you compare:
With that in mind, we're going to closely compare and contrast the pricing for Sunflower & Safflower Oil against Extra Virgin Olive Oil. These, as you can see, are two of the most common, naturally non-GMO high quality oils available. There also each very common in the specialty and natural foods industry right now.
We're also going to compare the organic varieties to the non-organic varieties. Then you can start to get a picture of the difference in price for each of these oils.
Sunflower and Safflower Oil Pricing Is Tied Together
Also, it's important to note that I've bracketed the pricing of Sunflower and Safflower Oil together. That's because these two markets tie closely together, as many manufacturers use both bulk oils interchangably. Also, their pricing tends to flip flop back and forth, as one oil is more in demand, and then the other.
The Price Comparison of Extra Virgin Olive Oil to Safflower and Sunflower Oils
In the last few months, Safflower and Sunflower Oil prices have ranged from $1.40 to $1.60 /Lb.. Organic Safflower and Sunflower ranged from about $1.70 - $2.00 /Lb. When the market was not so tight, prices were about $0.10 - 0.20 /lb less than this estimate.
Extra Virgin Olive Oil prices have ranged from $1.95 - $2.30 /Lb, while Organic Extra Virgin Olive Oil prices have ranged from $2.50 - $2.90 /Lb.
Of course, all of this information reflects the market over the last few months and doesn't reflect current pricing. It is, however, a good way to give you an accurate range to compare one to the other.
Look to the chart below for a visual comparison of this pricing.
As you can see, Sunflower and Safflower Oil, whether Organic or not are still cheaper than Extra Virgin or Organic Extra Virgin Olive Oil. The different in price between the regular and organic varieties is a bit wider with Extra Virgin Olive Oil than with Sunflower or Safflower Oil.
Key Takeaways for Procurement Managers
The key pricing take aways for manufacturing purchasing managers are:
- Sunflower and Safflower Oil has been cheaper than both Organic and regular Extra Virgin Olive Oil
- The price differential between the organic and regular variety of Sunflower/Safflower Oil is a slightly smaller gap than the difference in price between Extra Virgin Olive Oil and Organic Extra Virgin Olive Oil.
If you're considering switching to any of these Non-GMO oils as an alternative (or for a new product), here are the next steps you should take:
- Request current, custom pricing based on your volumes and packaging
- Request samples for R&D to begin testing
Good luck on your search!
We want to hear from you-- in the comment's below, tell us if there are any other oils you'd consider switching to that feel comprable to Suflower Oil, Safflower Oil or Extra Virgin Olive Oil.