Why Does the Cost of Olive Oil Fluctuate?

August 25, 2020

You could look far and wide and never find a commercial or residential kitchen without a healthy supply of olive oil. Indeed, possibly behind eggs and salt, most people would expect to find olive oil as a staple in even the barest of kitchen cabinets. Unlike the price of salt or eggs, however, the price scale of olive oil is a living, breathing thing. From year to year, and grade to grade, olive oil cost in Ohio can go up and down depending on a variety of factors.

A valuable commodity

First, the cost of bulk olive oil changes on a near-daily basis because it is what is known as a commodity. A commodity is a raw material that can be bought and sold in bulk. Nearly every industry has some sort of commodity. Raw metals like silver or gold are commodities, as are sources of energy like crude oil and natural gas. The agricultural industry also has a huge number of commodities like coffee, orange juice, wheat and—you guessed it!—olive oil.

Commodities brokers around the world buy and sell bulk quantities of their chosen commodities on a daily basis. Depending on the availability of a given commodity, the price will rise or fall. For example, at the end of an olive growing season, should it be discovered that disease has claimed a significant portion of the available olives, the supply of olives would fall, and the price would rise in response. On the other hand, if an olive crop yields far more healthy olives than was previously forecast, the cost of olives will drop to match.

Of course, the commodities price isn’t the only thing governing the cost of your olive oil.

Choosing a grade

As you’re probably aware, standard olive oil is divided into three primary grades: extra virgin, virgin and regular. These distinctions are monitored very closely by the International Olive Council, an organization that has the final word on where olives land on the grading scale. Olives must pass a rigorous series of tests to achieve the coveted status of extra virgin.

The process of olive oil production in Ohio also has an effect on its overall cost, including the cost of labor, harvest methods, time of harvest and size of the harvest. So, for example, an olive batch that covers several acres and is harvested mechanically late in the season will be on the cheaper end of the spectrum. Meanwhile, an olive batch that is kept to a small tract of land and handpicked early in the season when olives yield less oil will tend toward the higher end.

Get great quality at a phenomenal price

You don’t have to fret over olive oil cost in Ohio when you work with the pros at Olivamed LLC. We have a huge selection of olive oil options that will meet your needs, whether you need industrial oils or high-end bottled varieties. Pick up the phone and call Olivamed LLC today to find out how we can help. We can’t wait to hear from you!

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