In supermarkets we can buy plenty of olive oil, many varieties with a wide range of prices. Why bothering buying from a producer? It requires time and it is more expensive. This is how it looks but...
Let's talk about quality and price, focusing on high quality olive oil only. Producing high quality extra virgin olive oil implies level of costs that do not differ much between small and big producers. Harvesting techniques for the producer with 500 olive trees are similar to those adopted by a producer with few thousands trees. Consequently, synergies due to economies of scale do not have a significant impact in this sector. In Italy, the cost to produce a litre of high quality extra virgin olive oil is between four and five Euro. This is the pure production cost when the product is leaving the pressing plant. It does not include stocking, bottling, labelling, marketing, distribution and commercial costs. How can it be possible to buy olive oil labelled "extra virgin" in the supermarkets for prices in a range between three to six Euro? Sometimes we find so called "extra virgin" even below three Euro for the 0.75 bottle. Prices below a certain level can be justified only with lower quality. A litre of high quality extra virgin olive oil, simply cannot land on our dining table for less than eight Euro. As producers, we have decided to propose our product directly to the consumer. Cost saving for not using intermediaries and distribution industry allows consumer saving and investments to maintain high quality standards. If you would like to try our super quality extra virgin olive oil, please order at our store.
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |