Most everyone, when researching bulk olive oil, will have the question "What is the price of bulk olive oil?" This is a more complex topic than you might expect, as there are many factors that can affect pricing.
The Short Answer
The price of bulk olive oil can be between $2,500-$7,000 for one to two pallets of oil. The cost of a 20 ft. Container with 20 pallets of bulk olive oil is between $50,000-$120,000.
The Long Answer
Price ranges indicated above are vast, because the cost of olive oil is typically affected by many factors that are all at play at once.
Grade
The grade of olive oil that you choose will determine the price range you will be in. The lowest grade of olive oil, Olive Pomace Oil, will be the cheapest end of the spectrum, while Certified Organic Extra Virgin Olive Oil will be the most expensive in the range.
Packaging
The type of packaging that you choose will make an impact on price as well in regards to your amount of oil and your shipping costs. Opting for larger sizes like the flexitanks will reduce the rate the most, followed by totes and drums. The less packaging there is, the lower the cost — or at least that’s how the logic should work in an ideal market. Packaging costs can vary, however, based on metal/plastic tariffs and other political and environmental factors, so there are some outside things that can affect the comparison of packaging costs.
Curious to learn some more about how packaging can affect your price? Download our eBook the, Ultimate Guide To Bulk Oil Packaging eBook. This will show you price comparisons.
Market
The global commodity market for olive oil has the most significant impact on price. Pricing is typically tied closely to supply and demand — if supply goes up, prices go down and if supply goes down, prices go up. This is why we refer to the olive oil market is “sort of” a commodity market.
The market can still be affected overall, even if just one major olive oil producing country has a poor crop. If some of the largest producing countries (for example, Spain) have a bountiful crop, prices around the globe will fall. Now on the other hand, if supply is low, prices will increase. Spain is unique in that it is the “price driver” of the industry.
If Italy has a poor crop, they will purchase a lot of the bulk olives and oil from Spain to fill in their own contracts. This in turn will use up a lot of Spains supply, and prices in both countries will go up. Each country’s olive oil market is both separate and highly intertwined with each other.
In Conclusion
Smart buying decisions come by analyzing all three of the above factors that can affect the price of your bulk olive oil. To get real up-to-date prices for your bulk oils, request a price quote.
Topics: Prices & Saving Money, Small Businesses Advice, Purchasing & Procurement
