How Olive Oil Is Priced: The Complete Supply Chain

The gap between what a producer receives for olive oil at the lagar and what a consumer pays in a supermarket can be 300–500%. Understanding each stage of the pricing chain explains why.

Stage 1: At the Mill (Lagar Price)

The mill price is what an olive oil producer receives when selling bulk oil — either directly to a bottler, to a broker, or to a cooperative. This is the baseline from which all other prices derive.

In March 2026, EVOO mill prices in Spain range from €4-4.5/kg. This price reflects the raw cost of producing the oil plus the producer's margin (which varies enormously depending on whether it's a large industrial estate or a small traditional farm).

Stage 2: Broker / Trader

Most bulk olive oil changes hands through brokers, who aggregate volumes from multiple producers and sell to bottlers or exporters. The broker typically adds €0.10–€0.30/kg margin and provides logistical services including storage, quality testing, and transport coordination.

Stage 3: Bottler / Packer

The bottler purchases bulk oil, blends it to achieve consistent quality and flavour profiles, bottles it under their brand, and sells it to distributors. Bottling adds €0.50–€1.00/kg in direct costs; the bottler's margin adds further.

Stage 4: Distributor / Importer

For international trade, an importer/distributor buys from the bottler, handles customs clearance, warehousing, and last-mile distribution to retailers. Distributor margin is typically 15–25%.

Stage 5: Retailer

Supermarkets apply margins of 30–50% on olive oil, though this varies significantly by retailer and market.

The Result

A litre of EVOO that cost €4.5 at the mill may retail for €10-12 in a Northern European supermarket — with each intermediate step adding legitimate costs and margins. For buyers purchasing directly from mills, the savings are significant.