What does it cost to make a tonne of refined palm kernel and babassu oil?
Douglas Insights prices 28 inputs for a tonne of refined palm kernel and babassu oil in 4 countries from 16 documents: 4 raw materials, 0 packaging materials, the utility tariffs and the production wage, each with its publisher and year. The report multiplies them by the consumption per tonne, balanced across 5 process steps, and gives the direct cash cost of a tonne in every country.
Direct cash cost means raw materials, packaging, energy and water, and the crew on the line: what a refined palm kernel and babassu oil producer pays for each tonne before capital, maintenance, overhead and financing. Those belong to the plant project report; this page and this report stop at the tonne. The reference plant is 10,000 t/y at steady state; base period calendar year 2022–2025.
Brazil (an input price is still being sourced) and United States (an input price is still being sourced): not yet published. A country is dropped rather than priced with a proxy.
Which process route is refined palm kernel and babassu oil costed on?
A refined palm kernel and babassu oil line runs 5 process steps, from alkali refining (neutralisation of free fatty acids) to polishing filtration and refined oil storage; each is a unit operation from a published process norm, and the report carries the yield and loss of every step so the inputs per tonne of finished product close.
- Alkali refining (neutralisation of free fatty acids). Source: US Environmental Protection Agency.
- Soapstock separation by centrifuge and water washing. Source: US Environmental Protection Agency.
- Bleaching. Source: US Environmental Protection Agency.
- Deodorisation (steam stripping under high vacuum), canola oil. Source: US Environmental Protection Agency.
- Polishing filtration and refined oil storage. Source: US Environmental Protection Agency.
What do the raw materials for refined palm kernel and babassu oil cost in each country?
4 raw materials for refined palm kernel and babassu oil are priced in each of the 4 countries: crude palm kernel or babassu oil, sodium hydroxide, solid, phosphoric acid and sulphuric acid. Prices are customs unit values and producer prices for the year shown, in US dollars per tonne. Sodium hydroxide, solid shows the widest spread, from USD 443 a tonne in South Africa to USD 998 in Germany.
| Raw material, USD per t | South Africa | China | Germany | Saudi Arabia |
|---|---|---|---|---|
| Crude palm kernel or babassu oil (HS 151321) | 1,168 2024 | 1,199 2024 | 1,229 2024 | 1,428 2024 |
| Sodium hydroxide, solid (HS 281511) | 443 2024 | 501 2024 | 998 2024 | 593 2024 |
| Phosphoric acid (HS 280920) | 555 2024 | 761 2024 | 1,134 2024 | 731 2024 |
| Sulphuric acid (HS 280700) | 150 2024 | 36 2024 | 99 2024 | 97 2024 |
Sources: UN Comtrade (United Nations Statistics Division) and UN Comtrade. Consumption per tonne, the cost each material adds and the material balance are in the report.
What do energy and water cost a refined palm kernel and babassu oil line in each country?
2 utilities are priced on the refined palm kernel and babassu oil route: electricity, industrial and natural gas, industrial. Tariffs are industrial, all-in and exclude value-added tax (VAT), each shown with its year. Electricity runs from USD 0.080 a kilowatt-hour (kWh) in Saudi Arabia to USD 0.218 in Germany, the widest gap of any utility input.
| Tariff | South Africa | China | Germany | Saudi Arabia |
|---|---|---|---|---|
| Electricity, industrial USD/kWh | 0.124 2025 | 0.102 2025 | 0.218 2025 | 0.080 2025 |
| Natural gas, industrial USD/Nm³ | 0.182 2025 | 0.627 2025 | 0.841 2025 | 0.076 2025 |
Sources: Eskom Tariffs and Charges booklet 2025/26 (1 April 2025 t…, Creamer Media Engineering News (reporting the National Energy Regulator of South Africa (NERSA) decis…, State Grid Henan Electric Power Company via Pingdingshan …, Shanghai Municipal Development and Reform Commission, Eurostat, International Energy Agency, Marafiq (Power and Water Utility Company for Jubail and Y… and S&P Global Commodity Insights. Consumption per tonne of product is in the report.
What does labour cost on a refined palm kernel and babassu oil line in each country?
The production operator wage runs from USD 10,582 a year in China to USD 43,120 in Germany, base wages from the statistics office of each country before employer on-costs; the crew per shift is sized from the process norms (US Environmental Protection Agency) and stated in the report. Wages enter the cost of a tonne of refined palm kernel and babassu oil through that crew on every shift.
| Wage | South Africa | China | Germany | Saudi Arabia |
|---|---|---|---|---|
| Production operator, USD a year | 15,347 2025 | 10,582 2025 | 43,120 2022 | 12,586 2025 |
| Source | Statistics South Africa | National Bureau of Statistics of China | Eurostat | Argaam (reporting General Authority for Statistics (GASTAT) Labour Market Statistics Q2 2025) |
Where are the inputs for refined palm kernel and babassu oil cheapest?
Inputs for refined palm kernel and babassu oil are cheapest in different countries: crude palm kernel or babassu oil (hs 151321) is cheapest in South Africa at USD 1,168 a tonne; electricity is cheapest in Saudi Arabia at USD 0.080 a kWh; the lowest operator wage is in China. No single input decides the cost of a tonne of refined palm kernel and babassu oil: the report weighs every input by its consumption and ranks the countries on the direct cash cost.
- Sodium hydroxide, solid (hs 281511) is cheapest in South Africa at USD 443 a tonne.
- Phosphoric acid (hs 280920) is cheapest in South Africa at USD 555 a tonne.
- Sulphuric acid (hs 280700) is cheapest in China at USD 36 a tonne.
What is the traded price of refined palm kernel and babassu oil in each country?
Douglas Insights records the traded price of refined palm kernel and babassu oil between USD 1,208 a tonne in the United States and USD 1,795 a tonne in Saudi Arabia across 6 lead countries. That customs unit value is the ex-works proxy against which the report measures the direct cost of a tonne in each country.
| Lead country | USD per t | Basis | Year |
|---|---|---|---|
| South Africa | 1,335 | UN Comtrade | 2024 |
| China | 1,215 | UN Comtrade | 2024 |
| Germany | 1,383 | UN Comtrade | 2024 |
| Brazil | 1,290 | UN Comtrade | 2024 |
| Saudi Arabia | 1,795 | UN Comtrade | 2024 |
| United States | 1,208 | UN Comtrade | 2024 |
Prices are customs unit values from UN Comtrade and producer prices where a production survey publishes them, such as Eurostat Production Communautaire (PRODCOM); one rule per country, stated in the report and not changed to move a result. Monthly price series are in the Douglas Insights price pages.
What moves the cost of a tonne of refined palm kernel and babassu oil?
Raw materials weigh more than three fifths of the direct cost of a tonne of refined palm kernel and babassu oil in South Africa, so the price of the main feedstock moves the cost more than any tariff or wage; the report moves the main feedstock, energy and the exchange rate by ten percent each and shows the cost of a tonne in every country under each.
- Raw materials: more than three fifths of the direct cost in South Africa.
- Packaging: under a twentieth of the direct cost in South Africa.
- Utilities: under a twentieth of the direct cost in South Africa.
- Direct labour: under a twentieth of the direct cost in South Africa.
What limits a production cost figure for refined palm kernel and babassu oil?
Three things limit a production cost figure for refined palm kernel and babassu oil: the traded price is a customs unit value, not a contract price; input years differ (calendar year 2022–2025) and a price moves with its market; and consumption per tonne comes from published norms rather than one plant's meters. The report states each limit beside the figure it affects.
- In China the direct cost sits above the traded price in the base period, a finding the report states rather than tunes away.
- In Germany the direct cost sits above the traded price in the base period, a finding the report states rather than tunes away.
Douglas Exclusive: the refined palm kernel and babassu oil feedstock ledger
Douglas Insights counts 16 documents behind the 28 inputs on this page. The feedstock ledger in the report lists every input with its publisher, document, code and year, so a buyer can put the same figure in front of a supplier.
| Input | Countries priced | Years | Publishers |
|---|---|---|---|
| Crude palm kernel or babassu oil (HS 151321) | 4 | 2024 | UN Comtrade (United Nations Statistics Division) |
| Sodium hydroxide, solid (HS 281511) | 4 | 2024 | UN Comtrade |
| Phosphoric acid (HS 280920) | 4 | 2024 | UN Comtrade |
| Sulphuric acid (HS 280700) | 4 | 2024 | UN Comtrade |
| Electricity, industrial | 4 | 2025 | Eskom Tariffs and Charges booklet 2025/26 (1 April 2025 t…, State Grid Henan Electric Power Company via Pingdingshan …, Eurostat, Marafiq (Power and Water Utility Company for Jubail and Y… |
| Natural gas, industrial | 4 | 2025 | Creamer Media Engineering News (reporting the NERSA decis…, Shanghai Municipal Development and Reform Commission, International Energy Agency, S&P Global Commodity Insights |
| Production operator wage | 4 | 2022–2025 | Statistics South Africa, National Bureau of Statistics of China, Eurostat, Argaam (reporting GASTAT Labour Market Statistics Q2 2025) |
Methodology: how is the refined palm kernel and babassu oil production cost built?
Four stages build the refined palm kernel and babassu oil production cost report: the process route and material balance from published norms (5 steps); input prices from customs and production statistics, tariff schedules and statistics offices (28 inputs, 16 documents, 4 countries); the direct cash cost of a tonne as consumption times price, with labour over steady-state output; and the check of each country against its traded price, where a cost far above the price holds the country until the input is re-checked.
Nothing is typed: every figure traces to a document, and the Douglas Insights research methodology explains how the Research Desk reviews each edition. Capital cost, financing and returns for the same line are in the manufacturing plant project report.
Market reports, plant reports and price pages for the same chain sit in the Douglas Insights industry hub; the production cost hub collects every production cost report.
Inside the report
01Executive Summary
Direct cash cost of a tonne of refined palm kernel and babassu oil in each lead country, lowest and highest named, key findings.
02Product, Specification and Scope
What is costed, what is not, the base period of every input.
03Process Route and Material Balance
Steps, yields and losses per tonne of product, with the technical source of each.
04Raw Material Consumption and Prices
Consumption per tonne and price by country for every raw material.
05Utilities: Consumption and Tariffs
Electricity, gas, steam and water per tonne and the tariff in each country.
06Packaging: Norms and Prices
Packaging materials per tonne and their price by country.
07Direct Labour: Crew, Shifts and Wages
Crew per shift, shifts and the operator wage by country.
08Direct Cash Cost per Tonne by Country
The waterfall: raw materials, utilities, packaging, labour.
09Cost Against the Traded Price
Gross margin at the customs unit value in each country.
10Sensitivity
Main feedstock, energy and currency, each moved ten percent.
11Douglas Exclusive: The Feedstock Ledger
Every input with its publisher, document and year.
12Methodology and Sources
Countries, documents and codes counted; how the Research Desk checks each edition.
AAppendix: Full Data Tables
Every input and every cost line by country.
Questions buyers ask
What is the traded price of refined palm kernel and babassu oil in each country?
USD 1,208 to USD 1,795 a tonne across the lead countries: South Africa USD 1,335; China USD 1,215; Germany USD 1,383; Brazil USD 1,290; Saudi Arabia USD 1,795; United States USD 1,208. Each is a customs unit value or production statistic for that country, the ex-works proxy the cost is measured against.
Which raw materials go into refined palm kernel and babassu oil and what do they cost?
4 raw materials are priced in every country: crude palm kernel or babassu oil (hs 151321), sodium hydroxide, solid (hs 281511), phosphoric acid (hs 280920) and sulphuric acid (hs 280700). USD 1,168 a tonne in South Africa is the lowest price of crude palm kernel or babassu oil (hs 151321) among the lead countries. Consumption per tonne and the cost each adds are in the report.
Where are the inputs for refined palm kernel and babassu oil cheapest?
USD 10,582 a year is the lowest operator wage of the lead countries, in China. The report ranks the countries on the direct cash cost of a tonne, which weighs every input by its consumption; the page shows the inputs, the report the ranking.
What is in the refined palm kernel and babassu oil production cost report?
12 chapters and an Excel data pack: the process route and material balance, raw material, utility, packaging and labour consumption and prices by country, the direct cash cost of a tonne in each of 4 countries, the margin at the traded price, sensitivity, and the feedstock ledger with every source. Delivered within 48 hours of an order.
Does this report include capex, IRR or payback?
No. Capital investment, land, construction, equipment, financing, IRR, payback and capacity scenarios are the plant project report, which costs the same line in three capacities. A production cost buyer who upgrades within 90 days has the full price credited against the Professional or Enterprise edition.
How fast is the report delivered?
48 hours from a paid order to your email, as a PDF and an Excel data pack prepared on the current edition of every input. Another country or a different process route is quoted by the Research Desk.
Research & citation
This report is researched, built and reviewed by the Douglas Insights Research Desk under the Douglas Insights editorial standards. Material errors are logged in the corrections log. No section is sponsored.
Douglas Insights Inc (2026). Refined Palm Kernel Oil Cost Analysis 2026. Report DI-PL-000216-PC, October 2026. https://www.douglasinsights.com/production-cost/refined-palm-kernel-and-babassu-oil/