As part of our Extra Virgin Olive Oil Experience, we have answered this question starting from an analysis of only the PRODUCT COSTS that are necessary to produce an excellent EVO oil. Therefore, to each of the phases that follow one another in the life cycle of the product we have attributed an average cost that characterizes them and which is also a function of certain geographical characteristics and linked to the season.
We then started in the analysis by examining the average cost of 1 kg of olives equal to 0.9 € (considering the range of 0.6 - 1.2 € x kg) which includes all aspects related to the production of a medium/high quality fruit: therefore those related to the cultivation and management of the land, the pruning of the plants, the olive harvest are considered.
Always keeping in mind that we are oriented towards a high-end product, we have considered to carry out an early harvest in October (and later we will find out why) that is to the veraison of the olives, therefore with an average yield at the mill limited to 10 %. From this it follows with a simple calculation that the cost of the raw material to produce a liter of oil is equal to € 8.18 per liter, which becomes € 8.63 including transport costs to the mill.
The milling costs of 18 € / ql were considered for an oil mill that makes use of the latest generation machinery strongly oriented towards quality and which obviously includes the filtration activity, thus bringing the partial cost of our liter of oil to € 10, 25.
We then added costs equal to 2 € / L related to; storage / conservation of the product in containers in the absence of oxygen and at a constant temperature of 15-18 degrees all year round
bottling (including label, bottle, cap, shrink cap) and that make us reach a total cost of € 12.25 / L.
* Considering that
a) PERIOD COSTS (sales, marketing, and administrative expenses) and DEPRECIATION are excluded
b) the costs indicated are not including VAT
c) seller's margin must be added
it is easy to understand that the PRICE for a high quality EVO OIL must be higher than 12.25 € / L.
This is also meant to be a proof that QUALITY together with Professionalism, Cutting-edge technology and Sustainability has its own price that one must be willing to pay.
If you want to make a comparison with the world of wine, you have to start thinking and get used to the idea that the price difference between a high quality EVO and a lower quality one is comparable to the one existing between a noble and a commercial wine. With the difference and added value that a bottle of oil is used several times while generally a bottle of wine is consumed in one / two meals.