Olive Oil International Prices

Olive oil International prices, in Rands per Litre, excluding VAT.

 ZAR/Euro (a)Achievable Euro rate/MT (b) (FOB)CIF & Landside (c)Final costing / Lt
(a x b x 0.92)/1000 + c
07-JanR14.41EUR 3691.75R3.69R52.62
13-JanR14.34EUR 3819.84R3.69R54.08
20-JanR14.43EUR 3600.00R3.69R51.47
27-JanR14.31EUR 3681.08R3.69R52.14
03-FebR14.38EUR 3903.85R3.69R55.33
10-FebR14.27EUR 3799,03R3.69R53.56
17-FebR13.69EUR 4000,33R3.69R54.08
23-FebR13.67EUR 3840.52R3.69R51.99
03-MarR13.88EUR 3806.16R3.69R52.29
10-MarR14.11EUR 3802.54R3.69R53.04
17-MarR13.72EUR 3843.14R3.69R52.50
24-MarR13.59EUR 3810.95R3.69R51.35
31-MarR14.53EUR 3849.5R3.69R55.16
09-AprR14.89EUR 3581.24R3.69R55.93
15-AprR14.60EUR 3895.07R3.69R55.49
21-AprR14.24EUR 3931.07R3.69R55.21
28-AprR14.69EUR 4095.95R3.69R59.05
05-MayR14.89EUR 4016.78R3.69R58.70
12-MayR14.62EUR 4196.69R3.69R60.14
18-MayR14.58EUR 4234.24R3.69R59.92
25-MayR14.72EUR 3995.87R3.69R57.27
01-JunR14.84EUR 3978.98R3.69R57.46
08-JunR14.76EUR 4063.6R3.69R58.31
15-JunR14.61EUR 4062.01R3.69R58.29
22-JunR14.67EUR 4061.12R3.69R58.50
29-JunR14.66EUR 3900.00R3.69R57.83
06-JulR15.31EUR 3907.60R3.69R58.71
13-JulR15.31EUR 3888.44R3.69R58.44
20-JulR15.07EUR 3908.88R3.69R57.87
28-JulR15.30EUR 3877.03R3.69R58.25
03-AugR15.86EUR 3887.57R3.69R60.43
10-AugR15.93EUR 3921.92R3.69R61.15
18-AugR15.61EUR 4011.76R3.69R61.32
25-AugR15.74EUR 3908.48R3.69R60.27
31-AugR15.60EUR 3899.91R3.69R59.67
08-SepR15.64EUR 3833.10R3.69R58.84
15-SepR15.84EUR 3755.85R3.69R58.43

The table below shows other costs of importing (already included in the table above) (Units; Rands/Lt)

Transit ex works, Spain, to "landed at Cape Town harbour"R2.00
Local "landside" costs (bank charges, clearing, and delivery to Cape Town suburbs)R0.40
SA Olive levyR0.40
Interest on the 7-week lead time between ordering and receipt (may take the form of a premium in the cost of forward cover over the spot price) (@12% pa)R0.89
Total extra cost, per LtR3.69

Remark (July 6 2017); although the bulk price has come off by nearly 3%, the Rand/Euro rate has deteriorated by over 4%. We just can’t win!

Olive Oil international prices

Bulk imported oil arrives by Tanker, Ship, and Rail

Notes;

  1. Commodity pricing based on http://www.poolred.com/Publico/GraficoEvolucion.aspx?tipo=0.
  2. Spot buying prices used (ie not moving average, and not futures).
  3. Costing assumes a “cash on order” deal.
  4. Costings are for bulk EVOO in a 21 MT flexitank,
  5. Costings are for EVOO of EU origin. Although one could negotiate a 5% better price by buying from, for example, Argentina/Tunisia/Turkey, oil imported into RSA from outside the EU would attract duty of 10%.
  6. Conversion of Kgs to Lts based on SG of edible oil of 0.92. So, for example, 1 Kg oil translates to 1.087 Lts thereof.
  7. This table updated every week, using
    1. the ruling FNB “casual” Euro selling rate, less 2%, and
    2. the closing EVOO pricing of the preceding day, plus 3% (in practice, we’ve been unable to buy at Poolred rates)

-My intention is full transparency in negotiations, and our spreadsheet workings are available on request. When we buy bulk oil, these values are the starting point for negotiations.

Local farmers can expect to achieve a minimum selling price of not less than “import parity”.

Producers in the Mediterranean basin generally retain their best quality olive oils for local consumption, and export their lesser oils.
Local olive oils are generally superior and, in bulk, command a premium of about 12% (great value for that quality!)