Peanut price drop cut the cost of peanut oil production, oil millers said.
China’s weak demand for pulses drove the price down to K5,500 from K7,500 per viss in October. The price of peanut meal also decreased to K2,500 from K3,300 per viss. Consequently, the cost of peanut oil production significantly declined, an oil miller told The Global New Light of Myanmar (GNLM).
Depending on peanut quality, about 38 to 42 tical of peanut oil are produced when a viss of peanut is milled. After extraction of the oil, about 50 ticals of peanut meal were obtained.
The oil production cost is estimated at K10,000-11,500 per viss. Capital cost is around K14,000-15,000 per viss.
The peanut oil prices vary depending on the quality of peanut and oil production volume. On 18 October, the peanut oil wholesale prices moved in the range between K12,500 and K16,000 per viss depending on regions. Meanwhile, the palm oil prices are K4,500-5,500 per viss.
The peanut oil, sesame oil, sunflower oil, soybean oil, niger seed oil, mustard oil and olive oil are unsaturated fats, whereas palm oil, coconut oil, pork oil and grease are saturated fats. Unsaturated fat is healthier than saturated fat.
There is no self-sufficiency in the production of peanut oil, sesame oil and sunflower oil. Therefore, palm oil is still imported.
There are over 230 large oil mills, over 920 medium-sized oil mills and over 3,000 small oil mills in early 2021. The prices stood at US$1,627.277 per tonne of peanuts and $2,104.166 per tonne of white sesame in October 2023. The palm oil price was $815 per tonne on 20 October. As palm oil adulteration with peanut oil flavour is found in the market, some oil millers suffer.
A drop in peanut prices resulted in a decline in peanut oil prices. This being so, the demand for peanut oil and sesame oil has risen. When the price of raw materials for oil is on the decline, millers should ramp up production. This way, it might cover domestic cooking oil demand to a certain extent. — TWA/KK
