Outside of a core group, how many in procurement have actually read reports like this one from Mintec?
I thought about this recently when I was in my local supermarket and felt the niggling feeling that the price of olive oil was out of whack. The price seemed considerably higher than it had been in the past.
As a numbers guy with over 40 years in high-tech and almost as long in procurement, I wanted to do some research. Let’s face it: no matter where you are in the olive oil supply chain, you still buy groceries. In short, and at the end of the day, we are all consumers. So, when a report talks about “price volatility” and “lower production estimates due to poor yield,” it will have a “reverberating impact” on all of us. The question is this: what does that impact look like to the consumer?
Check out the image below, and you will note that as of today, the price for this one olive oil brand ranges from $4.97 to $110.40 (and no, the $110 is only a 28.6 fl oz bottle).
Now, while I cannot see a difference in any of the products, they all seem to have the same specifications, except one being decanted unfiltered and another being naturally unfiltered. There is, of course, a difference between the two – but I don’t know if it is a $90 difference.
It is also worth noting that the $4.97 and $19.99 products are out of stock.
What does the Mintec Report tell us?
Olive oil prices have recently hit an all-time high and dipped. However, several factors have led to price volatility, and in the provider’s latest blog, they cover key insights in what they call a challenging environment:
• Lower production estimates due to poor yields and production in major countries
• Consumers switching to cheaper alternatives and more.
Use the following link to access the full report: https://hubs.ly/Q02kpG7d0
If you are involved in the agrifood end of the supply chain, you will find the following webinar a must-attend. Even if you are procuring non-food products, given that the EU produces 67% of the world’s olive oil, you will feel it as a consumer. Besides, what impact do glass prices have on the end product – especially if cities no longer accept glass for recycling? After all, you can’t have olive oil without a bottle. Yes, plastic is an alternative, but some noteworthy price fluctuations are also happening in that commodity group.
For deeper insights, join Mintec’s upcoming webinar, “Steering the Olive Oil Landscape – Supply, Quality, and Sustainability Insights.” on March 27th, 2:30 PM – 3:15 PM GMT.
Register here: https://hubs.ly/Q02kpznq0
Next Up: Do you Like Chocolate?
30
Procurement Insights
The Olive Oil Diaries – “Slipping Into Higher Prices?”
Posted on February 21, 2024
0
Outside of a core group, how many in procurement have actually read reports like this one from Mintec?
I thought about this recently when I was in my local supermarket and felt the niggling feeling that the price of olive oil was out of whack. The price seemed considerably higher than it had been in the past.
As a numbers guy with over 40 years in high-tech and almost as long in procurement, I wanted to do some research. Let’s face it: no matter where you are in the olive oil supply chain, you still buy groceries. In short, and at the end of the day, we are all consumers. So, when a report talks about “price volatility” and “lower production estimates due to poor yield,” it will have a “reverberating impact” on all of us. The question is this: what does that impact look like to the consumer?
Check out the image below, and you will note that as of today, the price for this one olive oil brand ranges from $4.97 to $110.40 (and no, the $110 is only a 28.6 fl oz bottle).
Now, while I cannot see a difference in any of the products, they all seem to have the same specifications, except one being decanted unfiltered and another being naturally unfiltered. There is, of course, a difference between the two – but I don’t know if it is a $90 difference.
It is also worth noting that the $4.97 and $19.99 products are out of stock.
What does the Mintec Report tell us?
Olive oil prices have recently hit an all-time high and dipped. However, several factors have led to price volatility, and in the provider’s latest blog, they cover key insights in what they call a challenging environment:
• Lower production estimates due to poor yields and production in major countries
• Consumers switching to cheaper alternatives and more.
Use the following link to access the full report: https://hubs.ly/Q02kpG7d0
If you are involved in the agrifood end of the supply chain, you will find the following webinar a must-attend. Even if you are procuring non-food products, given that the EU produces 67% of the world’s olive oil, you will feel it as a consumer. Besides, what impact do glass prices have on the end product – especially if cities no longer accept glass for recycling? After all, you can’t have olive oil without a bottle. Yes, plastic is an alternative, but some noteworthy price fluctuations are also happening in that commodity group.
For deeper insights, join Mintec’s upcoming webinar, “Steering the Olive Oil Landscape – Supply, Quality, and Sustainability Insights.” on March 27th, 2:30 PM – 3:15 PM GMT.
Register here: https://hubs.ly/Q02kpznq0
Next Up: Do you Like Chocolate?
30
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