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

Diversity of Product Packaging

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

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.