How Olive Oil Distribution Works in Our Community
Olive Oil Ordering Process
The ordering process begins with the start of the olive harvest season, around mid/late October. Boli informs the Distribution Group Hubs about the start of the process and the expected completion date (CD).
At the same time, it calls on the Distribution Groups to submit their collective pre-orders by the order deadline (OD) set by the Cooperative.
- If an agreement with the Producer Group already exists, prices are set immediately and pre-orders are binding.
- If no agreement with the Producers Group exists yet, an estimated price is given without commitment, with the note that final prices will be confirmed on the OD date.
Until the final price is set, order intentions may be submitted without commitment.
- If the final price is higher than the initial estimate, the pre-order may be cancelled or modified.
- If the final price is equal to or lower than the estimate, pre-orders become binding.
Availability and Quantities
On the OD date, the final selling price is set (if not already determined), the total quantity of olive oil (OIL) produced in the current year is estimated, and it is confirmed that orders can be fulfilled.
If ordered quantities cannot be fully met, distribution is carried out in order of priority based on pre-order date.
Producer Payment Price for Olive Oil
At the start of each olive oil season, the Producer Group sets the producer payment price — not solely based on market conditions, but taking into account the cultivation requirements for producing high-quality olive oil.
Product Price Determination
Based on the above prices, the cost per kilogram of olive oil (XO €) is calculated, which is what Boli pays the producers. The cost of a 5-litre package (in a tinplate container) is then determined by taking into account all cost factors:
Cost of content, settling, packaging, standardisation, storage/handling, transport, insurance, testing, personnel, administrative costs, overheads, shrinkage/losses, investment/reserves, taxes, VAT.
Olive Oil Storage
Olive oil must be stored immediately, either at the production site or the packaging facility.
- Repeated pumping with mechanical pumps negatively affects quality.
- For this reason, it is recommended to minimise movements until packaging.
Boli tests and certifies all measurable quality characteristics for the olive oil of each season in an accredited and recognised laboratory. These results are available to all members of the olive oil community.
Conclusion
Boli aims to create and organise a social structure (community) that brings producers and consumers into direct contact, without the involvement of traders, thereby also reducing the overall distribution cost.
Through this process, the participating members (Producers Group – Distribution Group) develop a relationship of mutual benefit.
At the same time, the Producer Group applies ecological, sustainable, and environmentally friendly cultivation methods, and is compensated based on the real value of their labour rather than solely on market terms — which also serves as an incentive for producers.
Consequently, it is a social benefit to increase the number of Producer Groups, as well as to correspondingly strengthen the Distribution Groups — both for environmental reasons and out of respect for the labour of producers and the needs of consumers.