Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms.[1] The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from oil crops in 2014 - Wikipedia
Palm oil, derived from the fleshy fruit of oil palms, is sometimes referred to as red palm oil due to its reddish-orange color. Palm oil is primarily derived from the Elaeis guineensis tree, a native species to coastal West and Southwest Africa, such as Angola, Gabon, Liberia, Sierra Leone, and Nigeria, with a long history of use.
How Much is the Price of Palm Oil
The price of palm oil in Nigeria is increasing per gallon, with the highest producers found in Southeast states like Imo, Abia, Anambra, Enugu, Ebonyi, South-South, Delta, and Edo State. Palm oil is sold in various containers, kgs, and tons.
As of March 12, 2024, the price of palm oil in Nigeria ranged from 600 to 700 Nigerian Naira per litre, equivalent to 0.3 to 0.4 USD at current exchange rates, based on seasonal fluctuations, region, and oil quality.
Palm oil Quantity Price per litre
4 litres ₦2,400
5 litres ₦3,000
10 litres ₦6,000
25 litres ₦15,000
50 litres ₦30,000
The price of palm oil in Nigeria fluctuates due to an unstable economy, typically ranging from 1,000 to 1,500 Nigerian Naira per kilogram. The quality of the oil, characterized by a bright red color, pleasant aroma, and absence of impurities, is a significant factor in its cost.
Understanding market dynamics is crucial for coping with rising palm oil prices, as they are influenced by weather conditions, production costs, and global demand, allowing consumers to anticipate price changes and plan their purchases accordingly.
Buying palm oil in bulk during lower prices can save consumers money in the long run, but requires proper storage facilities and conditions. Rising palm oil prices may prompt consumers to explore alternative cooking oils like soybean, sunflower, and canola, which may be more cost-effective in terms of taste and nutritional content.
The oil palm tree is a highly productive crop that produces high-quality oil, primarily used for cooking in developing countries. It offers a higher yield at lower production costs than other vegetable oils. It is found in nearly 50% of packaged products in supermarkets, including pizza, doughnuts, chocolate, deodorant, shampoo, toothpaste, and lipstick. It is also used in animal feed and as a biofuel.
The profitability of palm oil investment is affected by production costs, labor costs, land availability, and input costs like fertilizers and pesticides. Despite these challenges, the industry has made progress in sustainable practices, with the Roundtable on Sustainable Palm Oil (RSPO) certifying producers that adhere to ethical practices, adding value to their products.
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