Is the era of huge profits in olive oil agency coming to an end? These 3 signals herald a huge change in the industry

When Mr. Zhang was hesitating in front of the supermarket shelves about which brand of olive oil to choose, he probably didn't know that behind the golden liquid labeled "imported in original packaging" in his hand, there was a commercial chain stretching across the Mediterranean. As a synonym for healthy eating, the olive oil import agency industry is quietly expanding at an annual growth rate of 15%, but 90% of the practitioners are still "taking chances" with the traditional model. Today, we will dissect this seemingly high-end but secretly tricky track from an insider's perspective of the industry.

Three years ago, Ms. Li got in touch with the direct supply from a certain manor in Greece through a friend's introduction. She thought that finding the "source" would ensure a stable profit, but the first batch of goods was detained by the customs due to excessive acidity. The core value of professional agency institutions is precisely reflected in these invisible links:

• Verification of EU origin certification documents (30% of small and medium-sized manors have fake certificates)
• Multiple sampling tests (to avoid acidity changes caused by oxidation during transportation)
• Accurate classification of tariff codes (the tax rates for different processing techniques differ by 12%)

The 2023 agent survey by Zhongshitong shows that these cognitive biases have caused 68% of new entrants to withdraw within six months:

• Misunderstanding 1: Thinking that "extra virgin" is a guarantee of quality (actually, the EU standard allows 8% of secondary oil to be mixed in)
• Misunderstanding 2: Blindly pursuing low-cost sources (some producing areas in Turkey use pomace oil to pretend to be virgin oil)
• Misunderstanding 3: Ignoring the temperature control of logistics (the temperature in the shipping cabin exceeding 25°C will accelerate oxidation)

An agent in a provincial capital city reduced the return rate from 17% to 3% by using this method:

Look at the producing area: The early-harvest fruits in Andalusia (Spain) and Crete (Greece) have lower acidity

Look at the pressing date: Avoid the refurbished old oil during the concentrated listing period from September to November
Look at the test report: Require the provision of the specific test of peroxide value by SGS or Eurofins

With the implementation of the new EU regulations and the upgrading of consumption, subtle changes are taking place in this industry:

• The Spanish National Olive Oil Association will enforce the implementation of blockchain traceability (pilot in 2024)
• A new model of "small package repackaging + customized labels" has emerged in domestic bonded areas
• Medium and high-end catering channels have begun to require the provision of carbon footprint certificates.