Australian Olive Industry Survey: Product & Supply chain ~ Part 14

Diversity of Product Packaging

The most common package sizes are 500mL, 250mL & 20L.

Chart 0

Supply Chain Issues

56% respondents don’t have any issues with supply chains.  

The respondents who answered no:

  • Yes,yes,and yes
  • Price received – always want lower wholesale prices.
  • Inability to compete with imported product.
  • Bulk price too low. Payment terms for bulk EVOO are unacceptable. It takes 6-12 months to receive payments for bulk EVOO.
  • Bottle unavailability
  • As mentioned above, the price received from sales to restaurants is low. There are also always some customers that need chasing up for payment.
  • Price Received
  • Payment needs to be effected even before the oil can reach destination. A reasonable delay between purchase and distribution offered by short term bank loans would help
  • We have only just started. So far – we have had pay on delivery. NO consignment. Profits are poor and thus we are expecting to meet this gap through beauty products and accommodation.
  • All listed
  • Cash on delivery
  • larger retailers are generally slower payers
  • we are in an international agricultural commodity market and are thus affected by currency valuation, overseas markets and other competing cooking oils
  • pricing
  • Profitability
  • Everything is COD
  • Profitability is low for EVOO- very small profit margin.
  • Slow payments from distributors causing a flow on effect
  • Issue is our very low volume of product which means low gross income.
  • What….apart from actually having customers pay within agreed time???
  • Minimal bad debts (2 small restaurants in Broome fell over 5 years ago). None bad since.
  • Have given credit to shaky purchaser of large order in SA, covered with company and directors’ guarantees.  

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