The Value In Understanding Olive Oil Distribution

March 26, 2023


The Value In Understanding Olive Oil Distribution

The market for extra virgin olive oil is growing in popularity. It is becoming more widely used in food and beverages, personal care, and aromatherapy. As such, there are many benefits held in understanding how olive oil is distributed and produced.

Benefits Of Olive Oil

Olive oil is a complex food fat that contains a mixture of triglycerides, fatty acids and other compounds such as sterols and waxes. Olive oil has many benefits for the body including helping to improve brain health, reduce risk of heart disease and lower triglycerides. This is thanks to the healthy fats found in the oil that lower total blood cholesterol and LDL (“bad”) cholesterol, while increasing HDL (“good”) cholesterol levels. A healthy diet that is rich in Extra Virgin Olive Oil has also been proven to be a great alternative in the treatment of diabetes by preventing insulin resistance and lowering triglycerides. Moreover, an olive oil rich diet has been shown to help prevent or delay the onset of diabetes and also promote weight loss.

The Olive Oil Market

One of the most valuable things olive oil has to offer is its ability to add a lot of flavor to food without compromising health. However, the market for this precious commodity is incredibly competitive, and producers often have to work hard to differentiate their product from the competition. There are many factors that affect the way olive oil is distributed and produced. For instance, small and medium-sized companies may choose to invest in creative and innovative packaging to boost brand visibility and sales in this competitive market. Similarly, large-scale distributors often pay high prices for specialized equipment and machinery to guarantee a top-quality product that meets the specific requirements of their customers. They also tend to rely on a large number of suppliers and partners for supply. Regardless of the reasons for the distribution of olive oil, understanding how it is distributed and produced holds significant value in the industry. This value can be found in the fact that it provides a variety of benefits to producers and consumers alike.

Challenges Facing Olive Oil Today

The distribution of olive oil is a complex process involving multiple actors. The main players are farmers and cooperative societies, which are responsible for the cultivation of the olives; mills that process the olives to obtain the oil; and bottling plants that distribute the oil in retail stores and restaurants. In addition, the olive oil market is characterized by the presence of large trading companies and small producers, which also compete with each other. Some of these companies are based in Asia, which accounts for more than 40 percent of global sales. This has led to a variety of challenges for the olive oil industry. A series of factors, such as the recent pandemic in Spain or the conflict in Ukraine, have affected supply chains and resulted in bottlenecks and low prices. Moreover, there is a need to better understand the different actors involved in olive oil production and distribution. This can be achieved through the collection of information about a wide range of issues, from the production to the marketing and consumption.

The Future Of Olive Oil Distribution

The future of olive oil distribution is becoming increasingly critical. A fast-spreading bacterium that kills olive trees, COVID-related production problems and supply issues stemming from the ongoing war in Ukraine are among the key issues that threaten olive oil supplies around the world. However, the emergence of new trends is helping to alleviate some of these challenges. For example, a growing number of retail chains are introducing oils that come from specific production regions or even single estates. Similarly, the popularity of protected designations of origin (PDOs) has also helped to boost quality control and increase consumer awareness. The survey conducted by the project investigated the perception of European consumers, analysts, regulatory bodies, retailers and exporters/importers on PDOs. A high percentage of the actors surveyed viewed PDOs as beneficial to producers and consumers, while a lower proportion viewed them as being only a trademark. A large part of the respondents agreed that the application of PDOs has contributed to increasing consumer awareness about the quality of olive oil.

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