Is it profitable to make Olive Oil in Distillery in Flower Farm?

DreamScape Farm (IN1)

Olives are sold for $90 per Oilve
Olive Oil for $53 per Oil

In Distillery (Level 6), for making 80 Olive Oil we need 160 Olives.
i.e.     160 Olives           --->           80 Olive Oil
      (160*90=14400)               (80*53=4240)


Why should I make olive oil if its gonna be a loss making product?

Bufo (AU1)

All of the products made at the bakery, distillery, shop, and The Mermaid Bay have the cost of the ingredients less than the selling price of the final product, with the sole exception of olive oil.

The distillery produces batches of 80 olive oil with a selling price of $53, giving a total $4,240.
The ingredients are 160 olives with a selling price of $90, for a cost of $14,400 before production costs.

My neighbors are probably selling it to suppliers at a huge profit

Tinzen (SKN1)

u need it to make other produkts in the shop, plus the ship asks for it from time to time, as well as the market

enochnock (US1)

@DreamScape Farm (IN1) My suggestion is if your barn is not stocked with Olive Oil I would stock up on it. The Santa Wish List will start soon and more than likely it will be on your list or on your coop members list as one of the items to fill the request.  The last day of the weekly Santa event is when we have the opportunity to help our coop members fill/finish their orders. So having it available now will be very helpful.

dchen1 (US1)

Why would GGS create a production process that requires ingredients that are worth a lot more than the product?

artful (US1)

dchen1 (US1) said:

Why would GGS create a production process that requires ingredients that are worth a lot more than the product?

The other products you need it for are worth a great deal more.

dchen1 (US1)

Why do some contracts require lots of olive oil?  Selling olives or making sweet scented oil earns more than the percent bonus from contracts that require lots of olive oil.  
Selling olives earns +139% more than olive oil.  Sweet scented oil ingredients are worth 14880.  almonds and vanilla required in only small amounts, takes only 2h 30m to make.   Products sell for at least 115000, more if shop is upgraded. Makes at least +673% more money than selling ingredients.  Contracts give at most 25% bonus.  
A contract will have to have a lot more of other products for the 25% bonus to make more money than selling olives or making sweet scented oil.  If a contract asks for olive oil, it should be declined because the profit for sweet scented oil is higher for most contracts with olive oil.  

artful (US1)

dchen1 (US1) said:

Why do some contracts require lots of olive oil?  Selling olives or making sweet scented oil earns more than the percent bonus from contracts that require lots of olive oil.  
Selling olives earns +139% more than olive oil.  Sweet scented oil ingredients are worth 14880.  almonds and vanilla required in only small amounts, takes only 2h 30m to make.   Products sell for at least 115000, more if shop is upgraded. Makes at least +673% more money than selling ingredients.  Contracts give at most 25% bonus.  
A contract will have to have a lot more of other products for the 25% bonus to make more money than selling olives or making sweet scented oil.  If a contract asks for olive oil, it should be declined because the profit for sweet scented oil is higher for most contracts with olive oil.  

Then your best best is to decline it.