What is going on with olive oil prices? Discover Supplier Insights.
Recently, we have experienced significant increases in olive oil prices. Multiple factors are driving this trend, and we have decided to distinguish the key drivers of that change. OLIVICOLTORI TOSCANI ASSOCIATI | O.T.A. and Romano Vincenzo & C sas are two of Torg's verified suppliers with a long history and experience in olive oil production. They shared with us what is happening behind the scenes of olive oil production and how they have been handling it.
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From Tuscany Courtyard to Sicily’s Volcano: Best of Both Worlds
Differences between North and South
There are a couple of factors that contribute to the variety of olives, which later translates into the type of olive oil that’s produced out of them. The key factor is the geographical location, due to differences in:
Soil Composition
In the south of Italy, you will find limestone-rich, well-draining soils ideal for olive cultivation. Northern Italy, on the other hand, is characterised by soils that are often more varied, with some areas having clay-rich soils that may require additional measures before one can start olive farming there.
Farming Techniques
Speaking of olive farming measures: the techniques also differ along with geographical coordinates. Olive farming has been well-established in the south of Italy for thousands of years. This is why you’ll see people using traditional methods with centuries-old trees here. Due to water scarcity, southern farmers developed fry farming techniques to handle the, sometimes difficult, conditions. In northern Italy, you may spot more modern olive cultivation methods on newer groves.
Olive Oil Characteristics
Taken all together, how do those differences translate into the type of olive oil you obtain from differently cultivated olives? Northern Italian oils are often described as more delicate and fruity. Southern Italian oils are generally described as more robust and intense
The best of both worlds: Torg verified olive oil suppliers
OLIVICOLTORI TOSCANI ASSOCIATI | O.T.A.
Olivicoltori Toscani Associati (OTA) was founded in the early 1980s and officially became a cooperative in 1992. It represents over 8,000 olive growers from Tuscany, united by a commitment to producing high-quality extra virgin olive oil. Rooted in Tuscan tradition, OTA has always prioritized sustainability and quality, reflecting these values in every product. While OTA has succeeded in Italy, it is now expanding to international markets, bringing the essence of Tuscany to a global audience through its exceptional olive oils. To learn more about their products you can browse through their Torg digital catalogue.
Romano Vincenzo & C sas
Romano Vincenzo & C sas is a family company specialising in the production of extra virgin olive oils. They have been running their business for 3 generations, farming their olives on the Etna volcano hills. Therefore, their final product is the fruit of their hard, consistent work over generations and the cultivation of olives originating from Sicily. Even though the spirit of the company is deeply embedded in tradition, they have been innovating their olive processing technologies since the very beginning of their business. To learn more about their products you can browse through their Torg digital catalogue.
You Want to Be On the Lookout for Those!
What are the concerns of olive oil suppliers?
By understanding the obstacles that olive oil suppliers have to overcome, we can surely answer the question that led you to read this article today: Why Are Olive Oil Prices Skyrocketing? We asked Stefano Pellegrini from OTA what the challenges of olive oil suppliers are these days:
“The olive oil market faces several challenges, particularly due to climate change, which has affected olive yields and increased production costs. Unpredictable weather conditions, such as droughts and extreme temperatures, have had a significant impact on harvests, leading to fluctuations in availability and pricing. Additionally, the rising demand for sustainable and organic products has required producers to adopt more eco-friendly practices, increasing operational complexity. However, this shift toward sustainability has also opened new opportunities for premium, ethically produced oils, especially in international markets.”
Increased production costs due to the multiple reasons described by Stefano, have led to increased retail prices of olive oil. And it does not look like it will change any time soon, considering that a lot of the issues are correlated with long-term neglecting of problems such as climate change. At the same time, it seems like along with all the challenges that have to be faced, some opportunities come with them, for instance, new opportunities for selling premium, ethically produced oils. However, it also turns out to be a double-edged sword, especially when the demand increases and you as a supplier want to maintain a high-quality, local production. As Silvia Rossi from Romano Vincenzo & C sas shared with us, one of the key challenges their company is facing is the distribution of Sicilian extra virgin olive oils worldwide. Logistics and transportation, regulations compliance, and supply chain disruptions are only a few of the struggles that one has to keep in mind when trying to expand their supplier journey.
Now, let’s focus on the positive aspects of being an olive oil supplier. As briefly mentioned before, there is a growing global demand for high-quality and sustainable products. There has been a societal shift towards more mindful consumption. Stefano has acknowledged this opportunity and shared his point of view with us:
“(...) Consumers, particularly in premium markets, are increasingly seeking authentic, sustainably produced extra virgin olive oil, which aligns perfectly with OTA's values. Additionally, international awareness of the health benefits of olive oil has fueled interest in Mediterranean diets, creating more opportunities for expansion into new markets. OTA’s commitment to traditional methods and sustainable farming also positions the cooperative as a leader in the niche of eco-conscious consumers.”
There is a positive trend forming in the industry, and if you want to be a top supplier you need to tap into that demand. Consumers have become more conscious of environmental impact and health benefits. Stefano from OTA elaborated on that as well: “(...) This has increased the demand for certified organic and eco-friendly olive oils. Additionally, there is a rising interest in single-origin oils and artisan production, where consumers seek products with a strong connection to the local terroir. Innovation in packaging and traceability, with more emphasis on transparent production processes, is also shaping the market, offering consumers greater confidence in product authenticity.”.
Experienced suppliers recognize those needs and adjust their production accordingly. There is certainly an overlap in the observations shared by our two interviewed olive oil suppliers. Silvia, the export manager of Romano Vincenzo & C sas, also emphasized this point during our discussion. When asked about the opportunities and trends in the olive oil market, her response was: “Quality and professional production of the best extra virgin olive oils.”.
In our recent discussions with olive oil suppliers, a few key challenges and opportunities have been covered. On the challenge side, suppliers like Stefano Pellegrini from OTA highlight the significant impact of climate change, which has disrupted olive harvests through droughts and extreme weather, driving up production costs and retail prices. Suppliers also face logistical difficulties in expanding their markets internationally, as Silvia Rossi from Romano Vincenzo & C sas points out. Despite these challenges, the growing global demand for high-quality, sustainable products presents opportunities. Consumers seek eco-friendly, ethically produced olive oils, particularly in premium markets where health benefits and environmental consciousness are the key drivers of olive oil production and demand. As suppliers adjust to these trends by focusing on organic production, traceability, and artisan production, they get to grow in new markets. The shift toward mindful consumption offers hope for suppliers willing to embrace sustainable practices and innovation in their production and marketing strategies. You can learn more about the olive oil industry, as well as Torg suppliers, in our olive oil category dedicated page!
By understanding the obstacles that olive oil suppliers have to overcome, we can surely answer the question that led you to read this article today: Why Are Olive Oil Prices Skyrocketing? We asked Stefano Pellegrini from OTA what the challenges of olive oil suppliers are these days:
“The olive oil market faces several challenges, particularly due to climate change, which has affected olive yields and increased production costs. Unpredictable weather conditions, such as droughts and extreme temperatures, have had a significant impact on harvests, leading to fluctuations in availability and pricing. Additionally, the rising demand for sustainable and organic products has required producers to adopt more eco-friendly practices, increasing operational complexity. However, this shift toward sustainability has also opened new opportunities for premium, ethically produced oils, especially in international markets.”
Increased production costs due to the multiple reasons described by Stefano, have led to increased retail prices of olive oil. And it does not look like it will change any time soon, considering that a lot of the issues are correlated with long-term neglecting of problems such as climate change. At the same time, it seems like along with all the challenges that have to be faced, some opportunities come with them, for instance, new opportunities for selling premium, ethically produced oils. However, it also turns out to be a double-edged sword, especially when the demand increases and you as a supplier want to maintain a high-quality, local production. As Silvia Rossi from Romano Vincenzo & C sas shared with us, one of the key challenges their company is facing is the distribution of Sicilian extra virgin olive oils worldwide. Logistics and transportation, regulations compliance, and supply chain disruptions are only a few of the struggles that one has to keep in mind when trying to expand their supplier journey.
What are the opportunities for olive oil suppliers?
Now, let’s focus on the positive aspects of being an olive oil supplier. As briefly mentioned before, there is a growing global demand for high-quality and sustainable products. There has been a societal shift towards more mindful consumption. Stefano has acknowledged this opportunity and shared his point of view with us:
“(...) Consumers, particularly in premium markets, are increasingly seeking authentic, sustainably produced extra virgin olive oil, which aligns perfectly with OTA's values. Additionally, international awareness of the health benefits of olive oil has fueled interest in Mediterranean diets, creating more opportunities for expansion into new markets. OTA’s commitment to traditional methods and sustainable farming also positions the cooperative as a leader in the niche of eco-conscious consumers.”
There is a positive trend forming in the industry, and if you want to be a top supplier you need to tap into that demand. Consumers have become more conscious of environmental impact and health benefits. Stefano from OTA elaborated on that as well: “(...) This has increased the demand for certified organic and eco-friendly olive oils. Additionally, there is a rising interest in single-origin oils and artisan production, where consumers seek products with a strong connection to the local terroir. Innovation in packaging and traceability, with more emphasis on transparent production processes, is also shaping the market, offering consumers greater confidence in product authenticity.”.
Experienced suppliers recognize those needs and adjust their production accordingly. There is certainly an overlap in the observations shared by our two interviewed olive oil suppliers. Silvia, the export manager of Romano Vincenzo & C sas, also emphasized this point during our discussion. When asked about the opportunities and trends in the olive oil market, her response was: “Quality and professional production of the best extra virgin olive oils.”.
Key takeaways
In our recent discussions with olive oil suppliers, a few key challenges and opportunities have been covered. On the challenge side, suppliers like Stefano Pellegrini from OTA highlight the significant impact of climate change, which has disrupted olive harvests through droughts and extreme weather, driving up production costs and retail prices. Suppliers also face logistical difficulties in expanding their markets internationally, as Silvia Rossi from Romano Vincenzo & C sas points out. Despite these challenges, the growing global demand for high-quality, sustainable products presents opportunities. Consumers seek eco-friendly, ethically produced olive oils, particularly in premium markets where health benefits and environmental consciousness are the key drivers of olive oil production and demand. As suppliers adjust to these trends by focusing on organic production, traceability, and artisan production, they get to grow in new markets. The shift toward mindful consumption offers hope for suppliers willing to embrace sustainable practices and innovation in their production and marketing strategies. You can learn more about the olive oil industry, as well as Torg suppliers, in our olive oil category dedicated page!
Think Globally Act Locally - Beyond Production Efforts
Torg verified suppliers not only are reliable sources of best quality products but also a source of inspiration. OTA is very proactive and invests in educational initiatives for olive growers, helping them adopt more sustainable practices while maintaining traditional methods. “Additionally, the cooperative's participation in international events like BuyFood Toscana demonstrates OTA’s ambition to expand into global markets. These efforts reflect a balance between preserving heritage and embracing the future of sustainable agriculture, positioning OTA as a forward-thinking leader in the olive oil industry.”.
By acknowledging the environmental and societal impact of olive farming, O.T.A. preserves traditional practices while expanding globally through an innovative approach. Their open-mindedness allows them to balance heritage with growth.
Torg is fortunate to work with suppliers like OTA and Romano Vincenzo & C. We’re continuously learning from these experienced companies, gaining insight into how to unlock our full potential and drive innovation in the F&B industry from within. Learning from our verified suppliers and sharing that knowledge is crucial. This innovative and educational approach is a key factor in achieving success - one that benefits suppliers, consumers, and the environment!
By acknowledging the environmental and societal impact of olive farming, O.T.A. preserves traditional practices while expanding globally through an innovative approach. Their open-mindedness allows them to balance heritage with growth.
Torg is fortunate to work with suppliers like OTA and Romano Vincenzo & C. We’re continuously learning from these experienced companies, gaining insight into how to unlock our full potential and drive innovation in the F&B industry from within. Learning from our verified suppliers and sharing that knowledge is crucial. This innovative and educational approach is a key factor in achieving success - one that benefits suppliers, consumers, and the environment!