How 6 Of The World’s Most Expensive Oils Are Extracted | So Expensive | Business Insider

Business Insider

2 Dec 202352:45

EducationalLearning

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TLDRThe script explores the intricate processes behind producing some of the world's most valuable and expensive oils, including jasmine, shea butter, argan oil, coconut oil, Bulgarian rose oil, and red palm oil. It delves into the labor-intensive harvesting, traditional methods, and unique characteristics that contribute to their high costs and demand in luxury perfumes and cosmetics. The impact of climate, cultural practices, and global market forces on the production and pricing of these oils is also highlighted.

Takeaways

🌺 Jasmine oil is a highly valuable ingredient in luxury perfumes, with 1 kg costing over $5,000 due to the labor-intensive process of harvesting thousands of buds.
🌹 Bulgarian rose oil is extremely expensive, selling for up to $155,000 per kilogram, and is sought after by luxury brands for its unique and complex scent profile.
🌿 East African shea butter is more costly than its West African counterpart due to its superior qualities for cosmetic use, such as being easier to spread and absorb quickly into the skin.
🥥 Coconut oil, despite its contested health benefits, remains a popular and expensive cooking oil, used as a key ingredient in various products, including alternative meats.
🥜 Argan oil, once a local product from Morocco, has become a global luxury item, with the formation of women-run cooperatives helping to transform it into a billion-dollar industry.
🌳 The production of red palm oil is a labor-intensive and risky process, with harvesters facing dangers like snakes and falls from great heights, contributing to its higher cost compared to standard palm oil.
🌍 Climate change and weather-related issues have impacted the global supply and prices of cooking oils, including red palm oil, causing fluctuations in the market.
🌸 Jasmine sambach is considered the most coveted of all jasmine flowers, commanding a higher price in the market due to its desirable scent and limited availability.
🌱 Shea nuts, particularly the nyoa subspecies in East Africa, are primarily harvested in the wild, leading to challenges in scaling up production to meet growing demand.
🌾 The global market for argan oil has seen a significant increase in demand, rising from just 200 liters to 4,000 metric tons by 2019, with projections to sell over 10,000 metric tons by 2025.

Q & A

What is the main reason for the high cost of Jasmine oil?
-Jasmine oil is expensive due to the labor-intensive process of its production. It requires plucking over 5,000 buds to produce just 1 kg of Jasmine oil, which is a time-consuming and meticulous task.
Why is Jasmine sambach considered superior among other Jasmine varieties?
-Jasmine sambach is considered superior because it has a particularly delightful and joyful scent. It is also highly coveted in the perfume industry due to its unique fragrance profile, which blends well with other scents, making it a key ingredient in luxury perfumes.
How does the process of extracting oil from Jasmine buds work?
-The Jasmine buds are first spread out to prevent wilting. Once they begin to bloom and emit their fragrance, they are loaded into extractors where they soak in a solvent. The solvent absorbs the scent of the flowers, and the liquid is then separated from the waxy substance called concrete. Alcohol is added to the concrete, which is then filtered to obtain the Jasmine oil.
What makes East African shea butter different from West African shea butter?
-East African shea butter, made from the nyoa subspecies of Shea nuts, is more expensive due to its lower melting point, which makes it easier to spread and absorb quickly into the skin. It also has a higher content of beneficial components like vitamin E and antioxidants, making it more desirable for cosmetic products.
How does the production process of shea butter affect its final cost?
-The production process of shea butter significantly affects its cost. The cold-pressed method, which is more labor-intensive and preserves the nut's properties, results in a higher quality product and thus a higher price. On the other hand, the heat-processed shea butter is more affordable but may not have the same desirable properties.
What was the impact of the launch of the fragrance 'd jador' on Jasmine sambach oil?
-The launch of the fragrance 'd jador' led to a surge in the demand for Jasmine sambach oil, as it became a popular and sought-after ingredient in high-end perfumery. This increased demand resulted in a rise in the value and price of Jasmine sambach oil.
How has the argan oil industry evolved in the past 20 years?
-Over the past 20 years, the argan oil industry has transformed from a local venture to a global industry worth billions of dollars. The formation of women-run cooperatives has played a significant role in this growth, helping to organize production and ensure fair wages for the Amazigh women who produce the oil.
What factors contribute to the high price of argan oil?
-Argan oil is expensive due to its unique and complex production process, which involves manual labor for harvesting, cracking, and grinding the argan nuts. Additionally, the argan tree's limited geographical range and the cultural significance of the tree contribute to the oil's high value.
What are the environmental benefits of the argan tree?
-The argan tree, known locally as the 'Tree of Life,' provides food, shelter, and protection from desertification. Its deep roots prevent soil erosion, allowing vegetation to grow for grazing livestock, and it supports local biodiversity.
What are the health claims associated with coconut oil?
-Proponents of coconut oil claim it can promote weight loss, improve blood sugar levels, and slow the progression of Alzheimer's disease due to its high antioxidant content. However, nutritionists remain skeptical as scientific studies on these health benefits have been inconclusive.
Why has the price of coconut oil fluctuated in recent years?
-The price of coconut oil has fluctuated due to changing perceptions of its health benefits. An advisory from the American Heart Association warning against saturated fats, which coconut oil is high in, led to a drop in price. However, its use in popular alternative meat products and continued demand have caused the price to rise again.
What factors contribute to the high value of Bulgarian rose oil?
-Bulgarian rose oil is highly valued for its unique and complex scent profile, which contains over 300 compounds. The oil's production is also limited by the short harvesting season and the low oil content of damasque roses, making it a rare and precious commodity in the perfume industry.
How does the global demand for cooking oils affect the price of red palm oil?
-Global demand for cooking oils, influenced by factors such as weather-related supply shortages and geopolitical events, has led to an overall increase in cooking oil prices. This has impacted the price of red palm oil as well, making it more expensive due to higher demand and lower supply.

Outlines

00:00

🌺 Jasmine Oil: Luxury Perfumes and Laborious Harvest

This paragraph discusses the process of transforming Jasmine buds into luxury perfumes and the high cost associated with it. Jasmine buds, particularly Jasmine Grandy, florum, and sambach, are gathered by hand in India, with over 5,000 buds required to produce just 1 kg of oil. The labor-intensive process involves skilled harvesters who carefully select the right buds to ensure a high-quality yield. The Jasmine sambach is particularly valued for its joyful and divine scent. The oil is extracted through a meticulous process that requires a large quantity of flowers, highlighting the precious nature of the final product.

05:05

🌿 Shea Butter: East African Rarity and Extraction Methods

This section delves into the production of shea butter, particularly the East African variety, which is more expensive than its West African counterpart. The East African shea nut, or nyoa, is a wild subspecies that is more difficult to cultivate, contributing to its higher cost. The butter is extracted through either manual labor-intensive methods or machine processes, both of which are tedious. The final product is highly valued in the cosmetics industry for its low melting point and quick absorption into the skin. Despite the challenges in production, the demand for East African shea butter is growing, driven by its unique properties and the potential for economic benefits in producing regions.

10:05

🥥 Coconut Oil: High Demand and Production Challenges

This paragraph examines the popularity and high prices of coconut oil, which is used extensively in both food and medicine. Despite its widespread use, the production process is challenging, requiring manual labor to remove the husk and extract the oil. The Philippines, being a major producer, struggles to keep up with the increasing global demand. The western market's surge in interest in natural products has further driven up the price. However, the industry faces a looming supply problem due to the aging coconut trees nearing the end of their productive cycle, which may impact future production and prices.

15:12

🌹 Bulgarian Rose Oil: The Cost of Luxurious Fragrance

This segment highlights the production of Bulgarian rose oil, a highly sought-after ingredient in luxury perfumes due to its complex scent profile and rarity. The oil is extracted from damasque roses, which are collected in a short harvesting window each year. The process is labor-intensive, with thousands of kilograms of rose petals required to produce just a kilogram of oil. The unique ter of Bulgaria's Rose Valley, characterized by its cool and wet climate, contributes to the oil's distinctive properties. Despite the high cost, the demand for Bulgarian rose oil remains strong, driven by its unique scent and the prestige associated with luxury fragrances.

20:14

🌴 Red Palm Oil: Artisanal Production and Global Market

This paragraph explores the production and market dynamics of red palm oil, which is more expensive than standard palm oil due to its artisanal production process and unique flavor. Harvesting the oil involves dangerous climbing and manual labor to collect the palm fruits. The fruits are then processed through a series of steps, including fermentation and milling, to extract the oil. The challenges of production, including the risks faced by climbers and the impact of weather conditions, contribute to the oil's high price. Despite these challenges, red palm oil retains a strong market presence, particularly in West Africa, and is valued for its taste and nutritional benefits.

Mindmap

Keywords

💡Jasmine Oil

Jasmine oil is a highly valuable and aromatic oil extracted from jasmine flowers, particularly the Jasmine Grandiflorum and Sambac varieties. It is renowned for its sweet, fruity, and floral scent, making it a key ingredient in luxury perfumes. The oil is expensive due to the labor-intensive process of harvesting thousands of jasmine buds by hand and the fact that a significant amount of flowers is needed to produce a small quantity of oil. In the video, it is mentioned that 1 kg of jasmine oil can cost over $5,000, highlighting its exclusivity and the complex process of extraction that involves waiting for the flowers to bloom, harvesting the buds, and using solvents to capture the fragrance.

💡Shea Butter

Shea butter is a fat extracted from the nuts of the shea tree, commonly used in cosmetics and skincare products for its moisturizing properties. East African shea butter, made from the nyoa subspecies of the shea nut, is particularly expensive due to its superior melting point and quick absorption into the skin, making it highly desirable for cosmetic companies. The production process is labor-intensive, involving collecting shea nuts, drying them, cracking them to extract the kernels, and then grinding and processing these to produce the butter. The butter can be made by hand or using a cold press machine, with the latter method being more refined and preserving the nut's properties.

💡Argan Oil

Argan oil, often referred to as 'liquid gold,' is a culinary and cosmetic oil derived from the kernels of the argan tree, native to Morocco. It is known for its high content of unsaturated fats and antioxidants, making it a healthy cooking oil and a beneficial ingredient in skincare products. The oil is expensive due to the unique and traditional method of production, which involves cracking open the hard argan nuts, a laborious process that has been transformed into a booming industry through women-run cooperatives. The argan oil industry has not only provided economic opportunities but also contributed to the preservation of the argan tree ecosystem.

💡Coconut Oil

Coconut oil is a plant-based oil extracted from the meat of mature coconuts. It is widely used for cooking, baking, and in various personal care products due to its versatility and perceived health benefits. Despite its popularity, the oil's high saturated fat content has been a subject of debate, with some health organizations cautioning against its consumption. The oil's price can vary greatly depending on the method of extraction and market demand. In the video, it is mentioned that coconut oil's price has doubled when it reaches Western markets, and its industry is predicted to grow significantly in the coming years.

💡Bulgarian Rose Oil

Bulgarian rose oil is a highly prized essential oil obtained from Bulgarian damask roses, known for their low oil content and complex scent profile. It is used in luxury perfumes and cosmetic products for its unique, rich, and complex aroma. The oil is extremely expensive due to the limited harvesting period, the large quantity of rose petals required to produce even a small amount of oil, and the intricate distillation process. The unique growing conditions in Bulgaria's Rose Valley, including cool and wet climate, contribute to the oil's exceptional quality and high value.

💡Red Palm Oil

Red palm oil is a type of edible oil obtained from the fruit of the oil palm tree, known for its distinct reddish color and rich, buttery flavor. It is more expensive than standard palm oil due to its artisanal production process, which involves manual labor and the fermentation of palm fruits, adding to its unique taste and texture. The oil is primarily produced in West Africa, where it is used locally and exported to international markets at a higher cost. The production of red palm oil is challenging due to factors such as the risk of climbing tall palm trees and the impact of weather conditions on the harvest.

💡Labor-intensive

Labor-intensive refers to a process or industry that requires a significant amount of human effort and manual work, often resulting in higher production costs. In the context of the video, the production of luxury oils such as jasmine oil, shea butter, argan oil, and red palm oil is labor-intensive. These processes involve meticulous hand-picking of flowers or fruits, manual cracking of nuts, and careful distillation or extraction methods. The high level of human involvement in these processes contributes to the high value and cost of the end products.

💡Sustainability

Sustainability in the context of the video refers to the ability to maintain the production of valuable oils without causing harm to the environment or depleting natural resources. It involves practices that ensure the long-term availability of these resources and the well-being of the communities involved in their production. The video highlights the importance of sustainable practices, such as preserving the argan tree ecosystem and the potential for deforestation due to increasing demand for shea butter.

💡Global Demand

Global demand refers to the worldwide need or desire for a particular product or resource. In the video, the increasing global demand for luxury oils and ingredients such as jasmine oil, shea butter, and argan oil drives up their prices and influences production practices. This demand affects not only the economic opportunities for the producers but also the environmental impact of harvesting and processing these resources.

💡Traditional Production Methods

Traditional production methods are practices that have been passed down through generations and are typically characterized by手工and artisanal processes. These methods often involve a high level of skill and labor, contributing to the uniqueness and value of the final product. In the video, traditional methods of producing oils like argan oil and red palm oil are highlighted, emphasizing the importance of preserving cultural practices while meeting the demands of the global market.

Highlights

Jasmine oil is one of the most expensive oils in the world, with just 1 kg costing over $5,000.

To produce 1 kg of Jasmine oil, over 5,000 buds need to be plucked by hand.

Jasmine sambach is considered the most superior and preferred flower among jasmine varieties.

Jasmine is a night-blooming flower, and harvesters must work quickly at dawn to collect the buds before they bloom and lose their scent.

The process of making Jasmine oil involves careful handling and extraction, with workers spreading out the buds to preserve their fragrance before extraction.

East African shea butter is more expensive than its West African counterpart due to its superior spreading quality and quick absorption into the skin.

The production of shea butter involves labor-intensive methods, including hand-pounding and grinding of Shea nuts.

Cold-pressed East African shea butter can cost over $100 a kilo, with its high-quality properties making it desirable for cosmetic use.

Argan oil, derived from a tree native to Morocco, has transformed into a billion-dollar industry, with women-run cooperatives playing a key role in its production.

The traditional method of producing Argan oil has remained largely unchanged, involving manual cracking of nuts and grinding.

Coconut oil, while having a long tradition of use in Asia, has become a highly valuable commodity in Western markets, commanding high prices for its versatility.

Despite health controversies, coconut oil remains in high demand, particularly for its use in alternative meats.

Bulgarian rose oil is highly sought after in the luxury perfume industry, with a single kilogram selling for up to $155,000 due to its complex and rich scent profile.

The production of Bulgarian rose oil involves a race against time, as harvesters have only a few weeks to gather enough roses to meet annual demand.

Red palm oil, while more expensive than standard palm oil, offers a unique flavor and texture that justifies its higher cost.

The harvesting of red palm oil is a dangerous job, with workers facing risks such as snake encounters and falls from great heights.

The labor-intensive process of making red palm oil, from climbing trees to manual pressing, contributes to its higher price compared to mass-produced oils.

Despite the challenges and dangers, the demand for high-quality, artisanal oils like Jasmine, shea, Argan, and red palm oil continues to grow globally.

The unique growing conditions and traditional production methods of these oils play a significant role in their quality and price.

The global market for these artisanal oils is expected to expand, driven by demand for natural, high-quality ingredients in cosmetics, perfumes, and food.

Transcripts

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Related Tags

Jasmine Oil Shea Butter Red Palm Oil Luxury Perfumes Natural Cosmetics African Shea Bulgarian Rose Oil Argan Oil Coconut Oil Controversy Sustainable Production