Title: Italy olive oil production
Headings: Italian olive oil production
Italian olive oil production
Content: The holding tanks are nitrogen sealed to prevent oxidation, and the oil is bottled in nitrogen-sealed, stainless steel containers to control temperature and eliminate light. Such attention to detail is costly. The oil is extremely expensive to make and because the groves are relatively small, there are no economies of scale. Competing against large olive oil producers who “do not go to the same efforts and who blend with sub-par ingredients,” said Giustra. The difference in the cost of grocery store oil and boutique oil is very big, indicated Giustra, who knows that he will lose money in the short-term. As a successful financier, one might wonder why Giustra would choose to invest in a business where it is difficult to make a profit. Giustra views his olive oil venture as one with long-term potential. He believes that the market for quality oil is “exploding worldwide” and since olive oil can only be made in certain places in the world, the supply is limited. Those who make the absolute best oils will find their market and will be able to price it appropriately, said Giustra. Giustra sees the olive oil industry in a similar place to where the wine industry was 20 years ago.