How to negotiate the price of bulk olive oil

How to negotiate the price of bulk olive oilGuide

In brief. The price of bulk olive oil is negotiated around the origin price, to which packaging, logistics and incoterm are added. The buyer's real levers: anchor the discussion on the actual market price, decouple price and quality (COA), play volume and the campaign timing, and secure payment — rather than simply demanding a discount.

Negotiating bulk olive oil is not about haggling over a percentage: it is about understanding the price structure so you can discuss each item at the right level. A savvy importer obtains better terms than a buyer who merely asks for "your best price".

Understand what you are really paying

The landed cost stacks several layers, from the mill to the destination port:

Item What drives it
Origin price Campaign price (Tunisia from ~3.80-4.00 €/kg, organic ~3.85+ )
Packaging Flexitank (cheapest/tonne) < IBC < drums
Port + docs fees ONH analysis, EUR.1, THC, transit
Freight + insurance Depending on incoterm and destination
Duties & taxes 0% within the EU quota, GAFTA... (depending on country)

Negotiating "the price" without distinguishing these layers means depriving yourself of levers. The landed cost calculator lets you break down each item before the discussion.

The buyer's 5 levers

  1. Anchor on the actual market price. Quote the current origin price (tracked on our price observatory): the negotiation starts from a factual basis, not a number thrown out at random.
  2. Decouple price and quality. A low price on a downgraded oil is not a good deal. Require the COA (acidity, peroxide, K232/K270, polyphenols) and negotiate the price for a given category.
  3. Play volume and recurrence. An annual or multi-container commitment justifies a better grid than a one-off order.
  4. Choose the right incoterm. With FOB, you control the freight and can compare forwarders; with CIF, you pay for peace of mind. (See the incoterms guide.)
  5. Buy at the right time. The harvest (October-December) and the lean season make prices vary: negotiating at the peak of the campaign, on fresh oil, changes the equation.

Box: buyer side / seller side

  • Buyer side: your power comes from information (origin price, COA, alternatives) and commitment (volume, recurrence). Never negotiate a price without having seen the lot analysis.
  • Seller/exporter side: a good exporter defends their margin by selling value (award-winning quality, consistency, traceability, certificates) rather than caving on price. They know their floor price and concede in steps.

The classic mistake

Demanding an aggressive discount on a first order, with no payment guarantee or recurring volume. A serious seller would rather refuse than shave their margin on an unproven customer — and you lose a reliable supplier. Better to build a relationship: first order at a fair price, better terms afterwards.

FAQ

What is the price of bulk olive oil?

It depends on category, origin and campaign. For Tunisia, count from ~3.80-4.00 €/kg at origin (organic ~3.85+), excluding logistics and duties. The final landed price varies with the incoterm and destination.

Can you negotiate the price of a first order?

Yes, but the best lever is not the discount: it is commitment (volume, recurrence) and payment security (deposit, LC). A first purchase at a fair price opens up better terms later.

Does the price change with the incoterm?

Yes. EXW < FOB < CIF < DDP, because each incoterm adds costs (freight, insurance, clearance) to the seller's charge. Always compare at the same incoterm.

Should you negotiate on price or on quality?

Both, but separately. First set the category (via the COA), then negotiate the price for a given category. A low price on a downgraded oil costs more in the end.

How do you know whether a price is fair?

Compare it to the current origin price and the calculated landed cost. A price well below the market should raise a flag (quality, freshness, or supplier reliability).

Does volume really lower the price?

Yes, especially in recurrence: a full flexitank or an annual commitment negotiate better than an isolated drum. Bulk packaging (flexitank) also reduces the cost per tonne.

When is it best to buy?

During the campaign (October-December) for freshness, and by anticipating quota pressure (EU) that saturates early. Seasonality is part of the negotiation.


Need a firm price? Request a quote: we reply within 24-48h with a quotation by format and incoterm. To go further, see the full negotiation guide.

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