Bulk Edible Oil Blog

Is There A Shortage Of Organic Oil Ingredients?

Posted by Hannah Broaddus

It’s no surprise to hear that organic products are in high demand. So it only goes to say that organic ingredients that make up those products are in high demand too.

But can the supply keep up with this growing demand?

These big questions related to the organic supply chain are front-of-mind for many natural food manufacturers like you: Can your growing demand for organic ingredients be met? Can the supply chain keep up? And will you run into any ingredient shortages?

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Comparing Global Supply Of Commodity Oils 2005-2015

Posted by Hannah Broaddus

To be able to make smart decisions about your supply chain, you have to look at the availability of the different oil ingredients you may use. I thought today would be interesting to take a look at the data on which oils have the highest global production, and see which have gone up and which have gone down over time.

The USDA Foreign Agriculture Service provides an online tool which allows us to track the availability of different oils within a particular country or around the world. You can see information like total supply, imports, exports, production, crush, etc.

Analyzing this information allows us to glean some data and make smart decisions about future oil purchases.

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EVOO vs. Refined Olive Oil: Comparing Qualities & Prices

Posted by Hannah Broaddus

A key part of R&D’s role is choosing the right ingredients for the job. If you (or your marketing team) is set on using olive oil, you will need to decide which grade is right for what you’re trying to accomplish.

Two of the most common grades are Extra Virgin Olive Oil and Pure Olive Oil (also called just ‘Olive Oil’).

There are a few key differences between these two types of olive oil when you look at them from your R&D or corporate chef’s eye’s. There’s also a few differences in how these grades are priced, which you should understand if you’re on the purchasing side of things.

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Fall 2015 Olive Oil Commodity Market Update

Posted by Hannah Broaddus

With the new olive oil harvest approaching this winter, prices may go down but don’t expect too much of a decrease. In fact, with current global olive oil levels (including next year's predicted harvest and any supply left over from last year) prices may stay about the same as last year.

 

At the International Olive Council meeting in September 2015, members discussed the final tallies from the last harvest and looked forward to their expectations for the next harvest.

Projections for 2015/16 are still unsteady and appear to be offered as an estimate but without too much conviction. They expect that production will be looking up from last year, but will not be as good as the year prior. This is, the IOC reminds us, as long as weather conditions don’t change too much between now and the key part of the harvest (December 2015).

This graph is a great representation of the fluctuations in the market over the last 10 years.  

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Summer 2015 Olive Oil Commodity Market Update

Posted by Hannah Broaddus

 

All of us in the olive oil sector are excitedly waiting for the next harvest season this winter.

This last years harvest (October 2014 - January 2015) was substantially down from the year prior, and we’ve seen both lack of supply and a resulting increase in prices over this spring and summer.

Every year, olive oil prices are at their lowest between December-January, at the peak of the harvest season. Over the spring and summer, prices continue to slowly rise as the world’s olive oil inventory is used up. In the middle of September, Spain officially announces what their next year’s harvest is going to look like (this matters because they are the world’s price driver), and prices either jump up or drop down accordingly.

Because of this annual cycle, olive oil prices in the summer are often high and many olive oil users look forward to the next season with fingers cross for a good year.

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Olive Oil Prices and Commodity Market Update: Spring 2015

Posted by Hannah Broaddus

Higher olive oil prices were predicted in the 2014/15 harvest, in contrast to the 2013/14 harvest of last year. Starting in the summer of 2014, producer prices in Spain began to rise. As a result, the global price of olive oil has gone up this year.

For a review of the commodity market from this fall 2014, we’d suggest catching up on the following article, Olive Oil Commodity Market Update 2014/2015 Harvest.

In the meantime, here’s a review of where prices are now and a some suggestions for future planning to keep your cost of goods low.

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US Olive Oil Imports In Review and How It Affects You

Posted by Hannah Broaddus

The following is a review of the 2014 trends in olive oil imports, including the most popular grades and where they’re coming from.

As you’re reading, here’s what directly affects your manufacturing / distribution company:

  • Olive oil imports continue to grow, and
  • Most imported olive oil is coming from Spain or Italy

Olive oil imports continue to grow

The popularity of olive oil is still on the rise, and has been for over 25 years. With the growth of gourmet retail shops across the US and much more conversation about olive oil quality and origins, consumers are likely to have an increase in demand for olive oil in the future.

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Why Opting For A Different Origin Can Save Money on Bulk Edible Oils

Posted by Hannah Broaddus

Have you heard predictions that your bul oil ingredient price will increase because the commodity market is going up? Hearing this news can be frustrating for purchasing managers, because you have no control over the market. You are, however, still responsible for protecting your business from rising costs. So what can you do?

There is, in fact, something that you can still do to cut your bulk edible oil costs in times like this. It all has to do with the global commodity market, where your oils are coming from and your buying strategy.

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Olive Oil Commodity Market Update 2014/2015 Harvest

Posted by Hannah Broaddus

A Brief Summary

To read the latest olive oil commodity market update, read Olive Oil Prices And Commodity Market Update: Spring 2015.

Olive oil prices have steadily increased in Spain over the last 4 months. Initially, the slight increases were regarded as normal; prices often go up just before the harvest season as world supply is at it’s lowest. However, prices continued to rise when a 50% drop in production was confirmed for the next harvest season due to drought in Spain.

Production in Tunisia, Greece and Italy is all expected to increase this next season. However, prices are still predicted to be higher than last year because Spain is the overall price driver for the market.  

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The Most Important Questions To Ask Before Signing A Bulk Oil Contract

Posted by Hannah Broaddus

Want to lock in a contracted rate for for your bulk oil ingredients?  As a purchaser buying raw ingredients for a manufacturing company, this can be a very smart thing to do.  

Signing a price contract can give your company stability on your cost of ingredients, and allow you to stategically plan your budget.  In addition, it can provide you with a bit of cushion if the commodity market unexpectedly goes south.

But, if you lock in your rates at the wrong time, you'll be required to pay more than the market price for oils.  It takes a firm understanding of the market and good help from your suppliers to lock in pricing at the right time.

So in the debate of whether to sign a supply contract or not, the definitive answer is yes, go for it-- but only at the right time.  When is it the right time?

You'll need to ask the right questions and the answer will emerge naturally after that.

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