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There are many people interested in getting into the olive oil business. From people related to the olive oil sector as companies not related to the sector but in both cases they want to start in the sale of olive oil. Also part of these interested parties, the heirs of olive groves or oil mills, as well as marketers, who do not own any olive grove but who wish to sell their own or third-party brands.
Let's take the example of a person who has inherited an olive grove from his grandparents, and wants to make it profitable.
The usual route of this person is, first of all, to think that the virgin olive oil that he received from his grandfather's cooperative is of extraordinary quality and that it would be a good idea to sell it bottled to be able to sell it more expensively.
This scheme is based on finding out how to pack the oil that the cooperative gives you and sell it instead of in carafes, in glass bottles and raise the price of the oil.
This may be fine a priori, but a number of factors must be taken into account before starting to invest time and money in this project.
We are going to see what are the main factors to take into account before starting in the olive oil industry.
Olive grove quantity
In the first place, it is important to take into account the amount of olive grove that is available, to analyze the volume of sales and the possible profitability.
Available time
You have to analyze what time you have or what time you are going to dedicate to the project. If you already have a full-time job and you are going to dedicate the weekend to the olive oil project, this must be clear to be able to propose what business you want and if it is viable with a specific dedication.
Team
If you want the project or business to be profitable, you have to have a team.
There is more and more professionalization in the olive sector, and competition must be valued. If you are alone and you do not have anyone to advise you on anything, you will have to train and look for experts or specialists in the area in question, in order to know what equipment you will need.
It is difficult for a single person to address all the fronts that creating a company presents and more if you are not going to dedicate the full day to it.
Investment in training
It is recommended that, especially in the first months, you invest in training. Until you have been well trained in each and every one of the areas that can affect your olive oil business idea, it is not advisable to make any decision, as it will lack solid foundations. You will see that once you have formed possibly, you modify your initial idea.
This point is one of the priorities, since it will help you to develop a good business model.
Agents
It must be borne in mind that the olive oil sector is a very broad sector.
They intervene among others: the olive tree and its characteristics, the tasting, and the olive oil itself with its different classifications, the production process with the oil mill or the cooperative with its idiosyncrasies, packaging and marketing intervene and a long etcetera. With all the elements that must be taken into account in the sale such as marketing and e-commerce, for example, oleotourism as well as gastronomy intervenes in the sector, which is finally where it has its leading role in virgin olive oil, and for Finally, the sector itself intervenes, with its particular supply and demand according to the campaign in question and who will be the one who will set the prices as a priority.
Target customer
You have to take into account who you are going to sell the olive oil to. It is about knowing and analyzing the target you are targeting. Before starting any action, you must know to whom and how you have planned to sell the oil. Know if you want to start at the national level or if you are going to focus on exporting. Depending on the resources you have, as well as the time and equipment you have, they will be the tools that will help you decide who your clients are going to be or who you would like them to be.
Competence
At the moment and only in Spain, for example, there are more than 1,800 olive oil producing entities, between private companies and cooperatives.
This means that it is very important that you take into account what your added value is and that it will differentiate you from the competition. You have to be clear about this before starting your business and it is something that you can mature during your training.
Big enterprises
You have to know the big companies that lead the olive oil market. These are some of the large companies that are leading the olive sector moving large quantities, and you have to know them to know what characteristics the companies that have managed to bill more have, in the sector we want to be part of. Some of the strongest are:
- Dcoop
It covers all the links in the olive oil production and marketing chain: it produces, sells, packages and exports. - California Olive Ranch
Considered the most important North American company at the level of olive groves and EVOO marketing in the market. - Sovena
It is the largest olive oil bottling group in the world, both in terms of quantity and turnover. - Deoleo
Exporter and Packer. It groups together the world's best-selling olive oil brands such asCarbonell, Hojiblanca, Bertolli o Carapelli. - Migasa
Exporter and Packer. Ybarra, La Masía, Cexac, Mueloliva, Rafael Salgado, and Monterreal
Investment
You have to know that it is not an easy sector, and that the investment has to be high.
Investment both economic and human resources. It is a long-distance race, so you don't have to be in a hurry and you have to be patient. On the other hand, it is an exciting sector, and being part of the agri-food market, each year is full of peculiarities, since the weather, for example, can significantly affect production.
These are just some important factors to take into account to get started in the olive oil industry, and therefore you have to work on them well before starting the concrete actions of the implementation of your project or your work as an olive consultant in the olive oil industry. olive oil.
