... That is, when you’re choosing bulk packaging for olive oil.
If you want to save money, choose a bigger packaging size. This will reduce your costs by eliminating unnecessary packaging. To save the most, choose the largest size that still works smoothly into your current production line.
Use the chart below to compare each of the packaging options commonly used by manufacturers. Both the Packaging Specs and most common uses will give you a good indicator for what will work best in your production line.
As you’re learning about each of the grades of olive oil, it’s helpful to keep a “quality scale” in mind. We’ve received questions like, “how much will buying Virgin Olive Oil vs. Extra Virgin Olive Oil save me?” and, “How similar are the quality of the Pure Olive Oil vs. the Olive Pomace Oil?”
These questions can be easier to answer if you can keep the spectrum of olive oil quality in mind. Note that pricing usually falls in line with the oil’s quality, but will vary depending on the supply level of each grade after the harvest.
As you’re starting the sourcing process for bulk olive oil, there are five primary decisions that you’ll have to make as you’re considering the product and the logistics. Let’s review:
Olive oil typically has a shelf life of 24 months from the date of manufacture. This date can be found on your Certificate of Analysis that accompanies your bulk shipment.
You can help preserve the freshness and quality of your olive oil by storing it in an optimal manner. Olive oil quality is degraded by oxygen, sunlight, and heat. You should keep the following information in mind when you’re choosing the packaging and storage for your olive oil.
The first question that you may have as you research bulk olive oil is, “How much does bulk olive oil cost?” This is a more complex question than it may seem, because there are many factors that can affect the cost of olive oil.
A pallet of bulk olive oil costs between $2,000-$6,000. A 20 ft. Container with 20 pallets of bulk olive oil costs between $30,000 and $90,000.
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Adulteration scandals in the olive oil industry have been increasingly explored by the public in the last 10 years. As a result, consumers have looked for a dependable “at-home” test to ensure that their Extra Virgin Olive Oil is 100%.
Olive Pomace Oil is oil that is extracted from the pomace of the olive. “Pomace” is pulp made from the olive pit and already-squeezed (expeller pressed) olive fruit. When an olive is picked, it is ground into a paste which is squeezed (expeller pressed) or spun to get the initial oil out. The dry pulp left over is called the olive pomace. There is increasing demand in today's market for oils that are expeller pressed only.
55 gallon drums are one of the most common packaging sizes for olive oil. These drums are commonly plastic or steel (all drums from Centra Foods are currently steel).
Once you’ve used your 55 gallon steel drums, you may be wondering what to do with them.
As you're researching olive oil suppliers, it's important to know that there are a few different types of suppliers that you could choose. Below is a review of the two most common, the local distributor and the national supplier, because these are likely the two that you will be weighing.
A local distributor is a supplier that offers olive oil, sometimes among many other ingredients.
Centra Foods receives questions from hundreds of manufacturers each year on the best ways to save money on olive oil. We have found that some of the biggest factors that can increase olive oil’s price is actually logistics related, including packaging.
Olive Oil can come in a variety of sizes, from 1 Gallon containers to drums and totes, to 6,000 Gallon FlexiTanks. The general rule is, the bigger the pack size, the lower the cost. Therefore, you always want to opt for the largest size possible, keeping in mind the restrictions of your warehouse and production line.
Centra Foods receives questions from hundreds of manufacturers each year on the best ways to save money on olive oil. Research and Development typically specifies a particular “spec” for the oil desired, and it is up to the operations and purchasing teams to figure out how they can save money on other pricing factors involved.
We have found that some of the biggest factors that can increase the price of olive oil are actually logistics related.
At Centra Foods, we receive many inquiries from soap makers large and small around the country. Their questions and goals are often the same: they’re looking to reduce the cost of ingredients, including the olive oil they use. Our advice varies, depending on the grade of oil preferred, the volumes needed, and the other ingredients required.
Centra Foods receives questions from hundreds of manufacturers each year about the best ways to save money on olive oil. There are many components that can affect the total price of your olive oil, including grades, packaging, freight, distance of the FOB point and experience of the supplier.
Click here to go to Part 1 of the series: Choosing the Right Olive Oil Grade
Once you’ve settled upon a grade of oil, the next step is to look at the packaging. It is one of the most important, and easiest components to consider if you want to save money.
At Centra Foods, we’ve received some requests for Organic Olive Pomace Oil. Unfortunately, this isn’t a product that you can buy. That’s because Organic Olive Pomace Oil does not exist.
To be certified “organic”, the olives have to begrown according to organic farming practices, and the manufacturing of the olive oil has to be done organically-- that is, without chemicals.
Olive Pomace Oil is most commonly a solvent extracted oil, similar to all seed oils like Soybean and Canola. The process uses heat and a solvent to extract the remaining oil out of the Olive Pomace. This process is inherently not organic.
