There is a wide variety of peanut oil available in the market, each having its unique depth of flavor and nutritional benefits. One of the more common varieties that you can find on-demand is cold-pressed peanut oil. It is extraordinarily nutritious and presents a balanced flavor to your recipe. However, if your recipe requires more depth in taste, it might be better to go for gourmet peanut oil.
Recently many people have voiced their concerns about peanut oil being too expensive. If you’re in the same boat, let us list a few reasons that might justify the increase in the price of peanut oil.
Why Is Peanut Oil So Expensive?
- Demand Surplus
As we step into this new age, more and more people are cautious about what they put in their bodies. Peanut oil introduces many benefits to a balanced diet and is listed as one of the most nutritious cooking oils in the world. Due to this, more health-cautious people are switching to peanut oil as a part of their daily recipes. This increase in demand has made it harder for the production units to keep up with the demand surplus.
Now, keeping basic economic principles in mind — when the demand for a particular product goes up, so does the price. This is the primary reason why peanut oil has become so expensive over the years. So, suppose you were wondering why you are having difficulty maintaining peanut oil in your budget. In that case, the answer is that it has become increasingly harder for the suppliers to keep up with the demand, which is why peanut oil is so expensive.
To tackle this issue, most people just look towards creating their mixtures of peanut oil with some other local brand to accommodate peanut oil in their budgets. That way, the peanut oil mixture will last you for a long time before you need to spend money on this product again.
- Exports and Intermediaries
An increase in exports and intermediaries have also played their role in pumping peanut oil prices. Depending upon which country you live in, the local suppliers might find it more profitable to export peanuts or peanut oil to different countries like China or the US. So, if you have noticed a sudden boom in peanut oil prices, then it might be because of a decrease in the number of local suppliers.
As most of the peanut oil is going out of the country, you need to pay a premium to get your hands on peanut oil remaining in the country. Sadly, you can’t do much about tackling this problem as the suppliers will always choose the buyer that offers more profit. This issue primarily affects third-world countries, where the currency is not strong enough for more prominent industries to maintain their production cycles.
Other than this, some intermediaries hold or hide stock to inflate the product prices artificially. Even though this practice is illegal in most countries, it still happens on a small scale which is why you might be experiencing a boom in peanut oil prices.
- Production Methods
Even though getting sufficient oil using machinery is not that labor-intensive, not every production plant can afford to put thousands of dollars into new equipment. This is especially true for industries in underdeveloped countries, where there is a deficiency of funds available to business owners to support the production cycle. So, if you were confused about the inflated prices of peanut butter, it can be linked to the expensive machinery behind the process.
The best option available is to create a customized variant of peanut oil and some other oil yourself. This practice will make it easier to spread out the budget as your bottle will last you a few more weeks when you mix it with other oils. You won’t get the same refined flavor or benefits, but you won’t have to worry about the bloated budget.
The new mixture will still be more beneficial than a local brand, and you can slowly refine the mix as you free up more of your budget. Other than this, you will just have to cope with the inflated prices of peanut oil until there are sufficient suppliers in the market.