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<pre>We found a specialist olive oil shop in the Grand Central station in NY sell
oils from individual groves around the Med. Retail prices were from $US 76
to $US 140 per litre in 250ml bottles. Even allowing half for the rent of
the shop they sounded good to us but maybe not to NZ or Australian growers?

We decided to finance our next holiday by taking our own oil with us and
selling it from a pavement stall at the station!!!


Cheers Brian Chatterton.
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<pre>Dear Brian:

I really enjoyed your posting!

On a serious note, I have found prices to be all over the board. For
example, certified organic, extra virgin olive oil from Spain sells
for US $600-850 per 55 Gallon drum, depending on the producer. I am
currently selling an excellent Spanish certified organic, extra
virgin olive oil to my clients for US $600 per 55 gallon drum.
California's certified organic, extra virgin olive oils have been
quoted to me at US $1,610 per 55 gallon drum. I also sell to my
clients certified organic, extra virgin olive oil from Italy and
Greece with prices that fall somewhere in the middle of that range.
These are FOB/country of origin prices.

To give you an idea of what is going on in the retail sector in the
US, an olive oil that I import a certified organic, single estate,
stone ground, extra virgin olive oil with a maximum acidity of 0.3
from a specific region of the Mediterranean, which retails for US
$12.99 per half liter bottle. I have found in retail stores a
competitor's inferior (my opinion) oil from the same region that
retails for US $39.99 per half liter bottle.

I believe that a deteriorating economy in the US and increased
consumer awareness are going to put an end to these wide swings.

I would love to know what others think.

Best regards,

Constantine
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<pre>Constantine

I presume you are talking in US gallons (3.79L)? That is, a price range of
US $2.87 - 4.07/litre for the Spanish oil, US $.7.70/litre for the
Californian and (mid-range) US $5.90/litre for the Italian & Greek oils.

Although we are still small producers Australia can now offer evoo (>0.5%
acidity) for AUD $13.50/L FOB, that's about US $6.75. The gap is slowly
closing. As more and more olives become available in Australia the price
will, of course drop further. It will be an interesting time.

I paid a peak price of $1500/tonne this year for fruit that yielded 22% wxw
oil (US $3.75/L). Next season I expect the price to be around $1300/tonne
or US $3.25/L. By 2005 I would anticipate prices falling to around
$1000/tonne or US $2.45/L. It will be around this period (2005 onwards)
that Australia will come into it's own in terms of world prices which will
also be the time when our local markets will be well and truly saturated and
exporting will be the only way to go.

One disadvantage we have is that growers are reluctant to pursue the organic
path notwithstanding the very clear indications that it will necessary.
Another is that many growers feel that they will develop their own boutique
market and add another 10000 labels on the market within Australia. It
simply will not happen. This latter group often refer to our wine industry
where they see a proliferation of labels and stunning successes in the
export market. But oils ain't wine my friends. Complementary for sure but
we do not sit down an quaff a bottle each night.

Australians would do well to read the RIRDC report
(http://www.rirdc.gov.au/reports/NPP/00-187sum.html) and look again at
developing a cohesive force if we are to be successful. If we don't we are
doomed before we start.

In the meantime you can buy our oil direct from our website.

Regards
Peter Caird
www.victorianolivegroves.com
0418 392 157


> On a serious note, I have found prices to be all over the board. For
> example, certified organic, extra virgin olive oil from Spain sells
> for US $600-850 per 55 Gallon drum, depending on the producer. I am
> currently selling an excellent Spanish certified organic, extra
> virgin olive oil to my clients for US $600 per 55 gallon drum.
> California's certified organic, extra virgin olive oils have been
> quoted to me at US $1,610 per 55 gallon drum. I also sell to my
> clients certified organic, extra virgin olive oil from Italy and
> Greece with prices that fall somewhere in the middle of that range.
> These are FOB/country of origin prices.
>
> To give you an idea of what is going on in the retail sector in the
> US, an olive oil that I import a certified organic, single estate,
> stone ground, extra virgin olive oil with a maximum acidity of 0.3
> from a specific region of the Mediterranean, which retails for US
> $12.99 per half liter bottle. I have found in retail stores a
> competitor's inferior (my opinion) oil from the same region that
> retails for US $39.99 per half liter bottle.
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<pre>Dear Peter:

Thank you for your thoughtful and insightful response.

You are correct. My quotes are for US gallons. It was
very interesting to read your comments about the
analogy between the wine and olive oil industries
given by some Australian producers. I was given the
same analogy by the Californian producers who used
that theory to justify their olive oil prices. I could
not agree with you more. Olive oil is a staple while
wine has become a luxury item nowadays.

Thank you once again for sharing your thoughts with
us. As our clientele grows, I am sure that I will be
looking at Australia soon to satisfy some of our
clients' needs. I have been reading your posts for a
long time now and it feels good to know that there are
producers in Australia who share my passion and
philosophies about this gift of nature that has become
such an important part of our lives.

Best regards,

Constantine


=====
Constantine Alexander

Visit our web site
http://www.OliveTree.cc

Visit our Parea*
http://groups.yahoo.com/group/OliveTreeWorld

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<pre>I found very interesting all you have written.

First, I'm not sure that you can find a useful difference between organic
and non organic product.
For instance, even if on the italian market organic evoo has always a higer
price than the non organic, the organic has often a lower organoleptic
quality.

Moreover, I believe with Constantine that is very important to develop
retail market, but I also see that in Italy the producers (especially the
one who sell good product) are adopting little size packaging (0.25, 0.50
and at least also 0.75 l) instead of selling bulk product (or in tins, in
big bottles etc.)

A nice (and little) bottle can surely help price to grow, because enhances
in the consumer the value idea of that product (mainly the idea, because a
lot of consumer - especially in Italy - cannot distinguish a good oil from a
bad one). That's exactly what happens with wine, when you buy a bottle with
high price and a nice label you believe that you're buying a special
product.

I really think that olive oil marketing has to follow wine marketing.

Greetings

Paolo
www.extraverginesardegna.it
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