`Calculating the Cost to Make 1 kg Olive Oil - Olive Oil Times

Calculating the Cost to Make 1 kg Olive Oil

Dec. 16, 2014
Olive Oil Times Staff

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The International Olive Council (IOC), GEA Westfalia Separator Ibérica and the Spanish Association of Municipalities of Olivo (AEMO) pre­sented pre­lim­i­nary results of an inter­na­tional study to ana­lyze the cost of pro­duc­ing one kilo­gram of olive oil.

The study cal­cu­lated direct costs” which included fer­til­iza­tion, plant pro­tec­tion, soil man­age­ment, prun­ing, har­vest­ing and irri­ga­tion. Indirect costs included depre­ci­a­tion, trans­porta­tion and milling were cal­cu­lated to obtain the over­all costs of pro­duc­tion per kilo of oil for each coun­try.

The data were obtained through a set of ques­tion­naires and the results are under­go­ing review before they are pre­sented and pub­lished, the IOC said.

The researchers offered the fol­low­ing rec­om­men­da­tions to improve the com­pet­i­tive­ness of the olive farms at the great­est dis­ad­van­tage in the world.”

  • Use train­ing and knowl­edge trans­fer as cost opti­miza­tion tools in coun­tries whose data show that the cul­tural tech­niques employed may not be the most suit­able prof­itabil­ity-wise;
  • Enhance the qual­ity of oils and high­lighte their dis­tinc­tive char­ac­ter­is­tics, espe­cially oils obtained in the tra­di­tional S1, S2, S3 and S4 sys­tems;
  • Encourage olive farms and olive oil mills to become more com­pet­i­tive through coop­er­a­tive strate­gies such as inte­gra­tion or con­cen­tra­tion;
  • Make bet­ter use of by-prod­ucts and seek new uses through research, devel­op­ment and tech­no­log­i­cal evo­lu­tion;
  • Convert S1, S2, S3 and S4 olive orchards to more inten­sive sys­tems when the ter­rain, water avail­abil­ity and size so per­mit;
  • Encourage pro­mo­tion as one of the most influ­en­tial strate­gic tools for boost­ing the cur­rent trend of world con­sump­tion and increas­ing con­sumer appre­ci­a­tion of olive oil.

The pres­i­dent of GEA Westfalia Separator Ibérica, Juan Vilar Hernández, high­lighted the impor­tance of the data: The first step to man­age an activ­ity is through the full knowl­edge of your bot­tom line, so this infor­ma­tion is not only strate­gic but vital for deci­sion-mak­ing within the indus­try.”

More than 30 mil­lion peo­ple are employed in the olive oil sec­tor in 47 pro­duc­ing coun­tries over five con­ti­nents GEA said in a state­ment unveil­ing the study.

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Olive oil is con­sumed in over 160 coun­tries, yet it amount to only 1.7 per­cent of edi­ble fats, accord­ing to the researchers.

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